Multiple Development in Timmins Nickel District Strengthens Canada Nickel's Strategic Position

• Canada Nickel reported successful exploration results across three large-scale properties with Reid, Mann West, and Midlothian all producing strong nickel drilling results, including the highest grade to date at Mann West.
• The company signed a contracting agreement with Mattagami, Matachewan, and Flying Post First Nations, establishing a framework for business opportunities while working toward a comprehensive Impact Benefits Agreement.
• Canada Nickel announced the formation of RoyaltyCo, a subsidiary that will hold NSR royalties on regional exploration properties, with the company receiving $8 million in cash and maintaining a 62% interest.
• The company extended its US$15 million loan facility with Auramet International to complete various strategic financing initiatives.
• Canada Nickel strengthened its board of directors now with more experience in metals and mining analysis and metallurgical engineering.

Canada Nickel Company (TSXV:CNC) is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high-growth electric vehicle and stainless steel markets. The company's flagship Crawford Nickel Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada. Canada Nickel has applied in multiple jurisdictions to trademark the terms NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products.

March 2025 has been a particularly active month for the company, with multiple significant announcements demonstrating progress across several strategic initiatives in the Timmins Nickel District.

Promising Exploration Results from "Three Giants"

Canada Nickel announced further successful exploration results from its regional exploration program focused on the "Three Giants" - Reid, Mann West, and Midlothian properties. Each of these targets has a footprint larger than the company's flagship Crawford Nickel Sulphide Project.

Mann West produced the highest grade interval to date with 0.63% nickel over 4.5 metres within 18 metres of 0.40% nickel, all contained within an entire mineralized core length of 452 metres grading 0.27% nickel in hole MAN24-79. This property covers approximately 3.4 square kilometres, with drilling completed over a strike length of 1.7 kilometres and a width of at least 600 metres.

At Midlothian, located 70 kilometres south-southeast of Timmins, consistent higher-grade results were achieved across entire core lengths, including 0.32% nickel over 49 metres within a hole length of 441.5 metres grading 0.29% nickel in hole MID24-13. This property has a target footprint of 1.7 square kilometres.

The Reid project, which recently received its initial mineral resource estimate, continues to yield strong results with targeted higher-grade nickel intersected in multiple holes, including 0.48% nickel over 12.0 metres and 0.41% nickel over 37.5 metres within 73.5 metres of 0.34% nickel in REI24-52. These intervals were part of an entire core length of 722.7 metres grading 0.24% nickel. Located just 16 kilometres southwest of Crawford, the Reid project contains a geophysical target of 3.9 square kilometres, almost 2.4 times larger than Crawford.

"Our regional exploration program is consistently yielding excellent outcomes with each of the Three Giants delivering strong drilling results," said CEO Mark Selby in the news release. "These targets each have a target footprint larger than our flagship Crawford Nickel Sulphide Project, underscoring the large-scale potential of the Timmins Nickel District. We are excited to publish the remaining six resources by mid-2025, bringing the total to eight regional resources and showcasing the vast scale of nickel resources within the District."

First Nations Contracting Agreement for Crawford Project

Canada Nickel announced the signing of an important agreement with Mattagami, Matachewan, and Flying Post First Nations, members of the Wabun Tribal Council, regarding the Crawford Nickel Sulphide Project. This agreement sets the framework for early business and employment opportunities while the parties continue to work toward a comprehensive Impact Benefits Agreement (IBA).

The agreement includes commitments for open-book negotiations on key contracting opportunities, including the construction of a 25.2-kilometre railway line, the relocation of Highway 655, and the construction of a temporary overpass on Highway 655. These initiatives aim to foster economic development while addressing the priorities of the three First Nations. Scheduled between 2025 and 2029, these projects will prioritize First Nations businesses and promote own-source revenue, foster partnerships, and support regional growth.

Jason Batise, Executive Director and Lead Negotiator for Wabun Tribal Council, commented on the significance of the agreement in the news release:

"This agreement demonstrates the strength of collaboration and our ability to negotiate meaningful opportunities when the rights of First Nations are respected. As recipients of the Skookum Jim Award from the Prospectors and Developers Association of Canada (PDAC) for Excellence in Indigenous Participation, we take pride in our success negotiating collective benefits for the First Nations we represent. While there is still much work to be done, it is a step in the right direction as we continue to work towards an IBA that fully respects the rights and maximizes the benefits for our members."

Formation & Partial Sale of RoyaltyCo Subsidiary

Canada Nickel announced the signing of a binding Letter of Intent (LOI) with Edmiston Drive Capital Corp. (EDCC) to create a new royalty company ("RoyaltyCo") to hold net smelter return (NSR) royalties on all of Canada Nickel's regional exploration properties in the Timmins Nickel District, with the exception of Crawford and other targets (Kingsmill and Dargavel) located on the original Project 81 patents.

Under the agreement, Canada Nickel will grant 1% NSR royalty interests in the subject properties to RoyaltyCo, which will then amalgamate with a wholly owned subsidiary of EDCC in exchange for C$8 million in cash and 8.9 million common shares of EDCC. After giving effect to the financing, Canada Nickel expects its equity interest in EDCC to be approximately 62%.

"We are very excited to work with EDCC toward the creation of a new royalty company which will hold NSR royalties of the Company's portfolio of properties in the Timmins Nickel District which, when combined, we expect to be among the world's largest nickel sulphide resources," said Mark Selby. "This transaction is just one further step in unlocking value while minimizing equity dilution for Canada Nickel shareholders."

Corporate Updates

Extension of Auramet Loan Facility

Canada Nickel announced that it had extended the repayment date of its US$15 million loan facility with Auramet International, Inc. from March 14, 2025, to April 25, 2025. An extension fee of US$168,233 will be paid, and the loan will carry an interest rate of 1.25% per month for the extension period. The interest payable on the original loan amount has also been deferred to April 25th, 2025. The extension will allow CNC to complete various strategic financing initiatives during the timeframe.

Board of Directors Strengthened

Canada Nickel announced the nomination of Ms. Jackie Przybylowski to its Board of Directors at its upcoming Annual General Meeting on May 28, 2025. Przybylowski is Vice President of Capital Markets at Gold Royalty Corp, a fast-growing precious metals royalty company. Prior to joining Gold Royalty, she was Managing Director, Metals and Mining Equity Research Analysis at BMO Capital Markets. As an analyst, she has visited over 130 mines and projects across more than 30 countries. She started her career as a metallurgical engineer and holds an MBA, MEng, and BASc from the University of Toronto and is both a Professional Engineer (P.Eng) and Chartered Financial Analyst (CFA).

Investment Considerations

The series of announcements in March 2025 demonstrates Canada Nickel's multi-faceted approach to advancing its portfolio of nickel sulphide assets in the Timmins Nickel District. The company continues to make significant progress on several fronts: exploration success across multiple properties, Indigenous partnerships, innovative financial structures to maximize shareholder value, prudent cash management, and strengthening its leadership team.

For investors considering Canada Nickel, several key factors emerge:

• The company has established a substantial resource base beyond its flagship Crawford project, with eight regional resources expected to be defined by mid-2025.
• The establishment of positive relationships with local First Nations communities indicates a pathway for responsible development.
• The formation of RoyaltyCo demonstrates creative approaches to unlocking value without significant equity dilution.
• The loan extension provides breathing room to complete strategic financing initiatives.
• Board reinforcement brings valuable expertise as the company approaches a construction decision on Crawford by year-end.

As the electric vehicle and clean energy transition continues to drive nickel demand, Canada Nickel's focus on developing low-carbon nickel production in a stable mining jurisdiction positions it as a potentially significant player in the North American critical minerals supply chain. However, investors should note that the company still faces typical mining development challenges including financing requirements, permitting processes, and technical execution risks as it advances toward production.