NetZero Metals Advances Ambitious Plans for Sustainable Nickel and Stainless Steel Production

• NetZero Metals awarded key engineering contracts to SMS, Metso and Ausenco to advance feasibility studies for nickel processing and stainless steel/alloy production facilities
• Feasibility studies remain on track for completion by year-end 2024
• Nickel processing facility expected to be largest in North America at over 80,000 tonnes annual capacity by phase 3
• Stainless steel facility to produce over 1 million tonnes of alloys including 500,000+ tonnes of 304-grade stainless steel annually, becoming Canada's largest
• Both facilities aim to achieve net zero carbon production by leveraging carbon storage at Canada Nickel's Crawford project

About NetZero Metals

NetZero Metals Inc. is a wholly-owned subsidiary of Canada Nickel Company (TSXV:CNC, OTCQX:CNIKF). The company was established to develop processing facilities in the Timmins Nickel District that will fill a critical gap in the North American critical minerals supply chain and support the province's electric vehicle strategy. By utilizing Canada Nickel's carbon storage capacity at the Crawford Nickel Project, NetZero Metals aims to deliver net zero carbon nickel, stainless steel, and alloy production.

Engineering Contracts Awarded

In a significant step forward, NetZero Metals has awarded key engineering contracts for its proposed nickel processing and stainless steel facilities:

• SMS group, a leader in steel making equipment and plant design, will handle the initial scope for the stainless steel and alloy plant
• Metso, known for its expertise in pyrometallurgical process equipment, will lead key portions of the nickel plant engineering
• Ausenco Engineering Canada will perform overall facility engineering and compile the staged engineering studies

Tapping the experience of these global engineering firms positions NetZero to successfully execute on its ambitious plans.

Nickel Processing Facility Details

The nickel processing plant is envisioned to be developed in three phases, ultimately reaching over 80,000 tonnes of annual nickel production capacity. This would make it the largest nickel processing facility in North America.

Pending permits, the plant is expected to commence production in early 2027, initially utilizing third-party feed. Production will expand further as Canada Nickel's Crawford project comes online.

By leveraging proven, low environmental impact technologies, the facility will produce high-quality nickel products suitable for both the stainless steel/superalloy and electric vehicle battery markets.

Stainless Steel & Alloy Facility Plans

NetZero Metals also intends to construct a stainless steel and alloy production facility in parallel. This plant will process the iron-chrome-nickel concentrate from Crawford, along with other feeds.

At full capacity, the facility will produce over 1 million tonnes of alloy products per year, including more than 500,000 tonnes of 304-grade stainless steel. This will make it Canada's largest stainless steel producer.

The steel plant is slated to begin production by the end of 2027, timed to align with the startup of the Crawford mine. Discussions are underway with leading global ferroalloy and stainless producers to potentially partner on the project.

Aiming for Net Zero Carbon Production

A key differentiator for NetZero Metals' processing plants is the goal of achieving net zero carbon production for nickel, stainless steel and other alloys.

The company plans to accomplish this by capturing CO2 emissions from the downstream processing operations and permanently storing the carbon utilizing capacity at Canada Nickel's nearby Crawford site.

If successful, this would make NetZero Metals a leader in the sustainable production of critical minerals and materials that are essential to the clean energy transition.

Advancing Towards Construction Decision

With the latest engineering contracts in place, NetZero Metals is well positioned to complete feasibility studies on both the nickel and stainless steel processing facilities by the end of 2024.

Positive results would pave the way for a final construction decision in 2025. In preparation, the company is already in discussions to secure an existing brownfield site for the nickel plant to accelerate the development timeline. Permit applications are also being advanced.

Transformational Opportunity for Timmins Region

By establishing world-class nickel and stainless steel production in the Timmins Nickel District, NetZero Metals stands to provide a significant economic boost to the region.The proposed facilities would build on Timmins' rich mining heritage, while positioning the area at the forefront of sustainable critical minerals production to supply rapidly growing demand from the electric vehicle and clean energy sectors.

Beyond the direct employment created, the processing plants would drive further economic spinoffs and help attract additional downstream manufacturing opportunities over time.

Crucial Link in North American Supply Chain

Today, North America has very limited capacity to process nickel and other battery metals, or to produce the stainless steel that is essential for both traditional and clean energy infrastructure. As a result, the continent's EV and renewable energy sectors are highly reliant on overseas supply.

By developing integrated, mine-to-metal production capacity in a stable jurisdiction like Canada, NetZero Metals will play a vital role in establishing a secure, localized, and sustainable supply chain for these critical materials.

This will reduce North America's vulnerability to supply disruptions and geopolitical risks, while ensuring the essential building blocks for the energy transition can be sourced according to high environmental, social and governance (ESG) standards.

Investor Takeaway

For investors, NetZero Metals presents a unique opportunity to gain exposure to the sustainable production of some of today's most strategically important and fastest-growing commodities.

Backed by a world-class team and powered by Canada Nickel's large, low-cost and low-carbon Crawford resource, NetZero is positioned to become a leading North American supplier of net zero nickel, stainless steel and alloys.With feasibility studies advancing rapidly and first production potentially less than three years away, the company offers investors a tangible project in the near-term critical minerals space.

Yet beyond the initial processing plants, NetZero Metals' approach is highly scalable. Success in Timmins could provide a template to expand to other nickel regions in Canada and internationally – establishing NetZero as the go-to partner for sustainable, integrated nickel and stainless steel production in key markets worldwide.

As the global energy transition gains momentum, NetZero Metals is poised to deliver some of the essential building blocks, while creating value for shareholders, local communities, and the environment.