Fathom Nickel - Advancing High-Grade Nickel Projects to Supply the Growing Demand

• Fathom Nickel, a Calgary-based nickel exploration company, is focused on its Albert Lake and Gochager Lake projects in Saskatchewan
• Recent drilling at Gochager Lake intersected promising nickel grades, with plans to further delineate the deposit
• The company aims to demonstrate the size and grades of its deposits to attract larger mining companies as potential acquirers
• Fathom Nickel has raised over $20 million since going public and is optimistic about the improving nickel market fundamentals
• Management is taking a prudent approach to capital raises and drilling to maximize shareholder value

In a world increasingly focused on electrification and decarbonization, the demand for nickel, a key component in lithium-ion batteries, is poised for significant growth. Fathom Nickel (CSE:FNI), a Calgary-based exploration company, is well-positioned to capitalize on this trend with its high-grade nickel projects in Saskatchewan, Canada. With a management team experienced in exploration and mine development, Fathom Nickel aims to delineate substantial nickel resources and attract larger mining companies as potential acquirers.

Company Overview

Fathom Nickel was founded in 2015 and went public through an IPO in May 2021. The company primarily focuses on its two nickel projects in Saskatchewan: the Albert Lake project (formerly known as the Rottenstone project) and the more recently acquired Gochager Lake project. CEO Ian Fraser, a geologist with over 35 years of experience, leads the company's exploration efforts.

Albert Lake Project

The Albert Lake project hosts the historic Rottenstone deposit, which boasts impressive grades of 3% nickel, 2% copper, and up to 10 g/t of platinum group elements (PGEs). The deposit was mined on a small scale in the past, with 26,000 tons of high-grade ore shipped to Inco's facility in Copper Cliff for processing. Fathom Nickel has identified additional areas of mineralization at Albert Lake, confirming the presence of a large magmatic nickel system on the property.

Gochager Lake Project

Acquired in the fall of 2022, the Gochager Lake project quickly became the company's primary focus. In just over a year of drilling, Fathom Nickel has made significant progress in understanding the high-grade mineralization at Gochager Lake. The company's recent drilling intersected 18.1 meters of 2.43% Ni, 0.51% Cu and 0.18% Co, and subsequent drilling has delivered encouraging results.

As CEO Ian Fraser explains, "We seem to have higher-grade mineralization building up on the footwall side of this steeply oriented contact. If you're drilling vertical holes, you'll miss all the goodies."

Interview with Ian Fraser, VP Exploration & CEO of Fathom Nickel

Exploration Plans and Resource Potential

Fathom Nickel plans to focus its exploration efforts on the Gochager Lake project over the next 12 months. The company aims to drill 10,000 to 15,000 meters to delineate the deposit further and build upon the historic resource estimate of 4 million tons grading 3% nickel. With mineralization remaining open at depth and along strike, there is significant potential to expand the resource.

"We're in a really good position to build this thing up and demonstrate that it's going to be a very attractive deposit for somebody other than ourselves to get it out of the ground," states Fraser.

Nickel Market Outlook

The outlook for the nickel market is promising, driven by the growing demand for electric vehicles and the need for secure, domestic supply chains. Fraser remains optimistic about the nickel market's long-term fundamentals despite recent volatility.

"The Americans are recognizing security around supply, and the bigger picture here is locking down good deposits of magmatic nickel sulfides in North America, because we certainly are going to have a customer just south of the 49th," he explains.

With the nickel market expected to face significant supply deficits in the coming years, companies like Fathom Nickel, which are exploring for high-grade nickel in stable, mining-friendly jurisdictions, represent attractive investment opportunities. As the world navigates the complex challenges of the energy transition, companies that can successfully deliver the critical metals needed to power a low-carbon future are poised to create substantial value for the shareholders.

Capital Raising and Financial Position

Since going public, Fathom Nickel has raised over $20 million to fund its exploration activities. While the company's market capitalization has been volatile, management remains focused on allocating capital efficiently and minimizing shareholder dilution. Fraser acknowledges the challenges of raising capital in the current market but remains confident in its ability to secure the necessary funding to advance its projects.

Fathom Nickel represents a compelling investment opportunity for those seeking exposure to the growing nickel market. With high-grade projects, an experienced management team, and a favorable jurisdiction in Saskatchewan, the company is well-positioned to create value through exploration success and potential M&A. Fathom Nickel is poised to supply the critical metals needed to power this transformation significantly as the world transitions to a low-carbon future.

The Investment Thesis for Fathom Nickel

• High-grade nickel projects in a stable, mining-friendly jurisdiction
• Proven exploration success with significant resource expansion potential
• Experienced management team with a track record of value creation
• Well-positioned to benefit from the growing demand for nickel in the electric vehicle and battery storage markets
• An attractive takeover target for larger mining companies seeking to secure high-quality nickel assets
• Prudent capital allocation and a focus on minimizing shareholder dilution

Nickel Macro Thematic Analysis

The global shift towards electrification and decarbonization drives unprecedented demand for nickel, a key component in the lithium-ion batteries that power electric vehicles and energy storage systems. As governments and corporations set ambitious targets for reducing greenhouse gas emissions, the need for secure, sustainable, and ethically sourced nickel is becoming increasingly critical.

In this context, North American nickel projects, such as those being advanced by Fathom Nickel, are well-positioned to benefit from the growing demand for domestic supply chains. Fathom Nickel's high-grade nickel projects in Saskatchewan offer investors a compelling opportunity to gain exposure to the growing demand for this critical metal. With an experienced management team, promising drill results, and significant resource expansion potential, the company is well-positioned to create value through exploration success and potential M&A. As the world transitions to a low-carbon future, Fathom Nickel is poised to play a key role in supplying the nickel needed for transportation and energy storage electrification.