Supportive Ontario Legislation Moves Critical Minerals Developer Canada Nickel to Strengthen Crawford Project

• Canada Nickel Company welcomes Ontario's new legislation aimed at streamlining approvals for critical mineral projects while maintaining environmental and Indigenous engagement commitments.
• The company's Crawford Nickel Sulphide Project near Timmins is positioned as one of the world's largest nickel sulphide resources and a key element of Ontario's critical minerals strategy.
• Canada Nickel has extended a US$15 million loan facility with Auramet International from April 25, 2025, to July 25, 2025, with an option to repay by May 9, 2025, without an extension fee.
• The company is pursuing various strategic financing initiatives, including a previously announced investment from Taykwa Tagamou Nation, highlighting its commitment to Indigenous partnerships.
• Canada Nickel's focus on environmentally responsible "NetZero" nickel, cobalt, and iron production aligns with growing demand for sustainably sourced materials in electric vehicle and clean energy supply chains.

Canada Nickel Company (TSXV:CNC) is advancing the next generation of nickel-sulphide projects to meet growing demand from electric vehicle and stainless steel markets. The company has established itself as a developer of low-carbon nickel resources in politically stable jurisdictions, applying for trademarks on terms like NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ while pursuing production processes with minimal carbon footprints. Its flagship Crawford Nickel Sulphide Project in Ontario's Timmins-Cochrane mining camp represents one of the world's largest nickel sulphide resources and serves as the cornerstone of the company's portfolio. For investors considering Canada Nickel, the company offers exposure to critical mineral development in a stable jurisdiction with strong government support, established infrastructure, and a focus on environmental sustainability and Indigenous partnerships – factors increasingly valued in ESG-focused investment portfolios.

Ontario's Pro-Development Legislation

Canada Nickel welcomed the Ontario government's introduction of the Protect Ontario by Unleashing Our Economy Act 2025. This proposed legislation aims to cut red tape and streamline the development process for critical mineral projects throughout the province. The government's initiative recognizes the urgent need for responsibly sourced strategic minerals like nickel, which are essential for North America's clean energy transition and industrial competitiveness.

The legislation focuses on accelerating project approval timelines while maintaining environmental standards. This regulatory efficiency has become particularly important as countries worldwide compete to secure supply chains for materials essential to electrification and decarbonization efforts.

"We commend the Ontario government for continuing to advance policy tools that support responsible critical mineral development," said Mark Selby, CEO of Canada Nickel. "At Canada Nickel, we remain focused on building projects the right way—with a strong emphasis on environmental stewardship, long-term regional benefits, and maintaining respectful relationships with Indigenous Nations."

This statement highlights the company's commitment to responsible development practices while pursuing the economic opportunities presented by critical mineral development.

The Crawford Project: A Strategic Resource

The Crawford Nickel Sulphide Project represents a significant resource in Canada's critical minerals landscape. Located near Timmins, Ontario, the project contains one of the world's largest nickel sulphide resources and has been identified as a key component of Ontario's critical minerals strategy.

The project's development is expected to create substantial economic benefits through job creation in northern Ontario, local infrastructure investment, and long-term supply of low-carbon nickel for clean energy applications

Pierre-Philippe Dupont, Vice President of Sustainability at Canada Nickel, emphasized the importance of the government's regulatory improvements:

"We are encouraged to see permitting timelines and regulatory efficiency become a priority. Improvements in these areas will help accelerate development of the Crawford Project and enable us to better align with Ontario's goals of becoming a global leader in clean and secure critical mineral supply."

The company has also expressed support for the government's consideration of the Timmins region as a zone of strategic economic importance. The area offers several advantages that position it as an ideal hub for critical mineral development:

• Long-standing mining expertise
• Experienced workforce
• Established power and transportation infrastructure
• Strong community support

These factors make Timmins particularly suitable for investment in clean nickel production, value-added processing, and downstream manufacturing operations.

Financial Developments and Strategic Partnerships

Canada Nickel announced the extension of its US$15 million loan facility with Auramet International, Inc. Originally scheduled for repayment on April 25, 2025, the loan's maturity has been extended to July 25, 2025. Importantly, the company retains the option to repay the loan prior to May 9, 2025, without incurring any additional extension fee.

This financial maneuver provides Canada Nickel with additional flexibility to pursue strategic financing initiatives. Mark Selby commented:

"I am pleased that we are extending repayment of our loan with Auramet allowing us to complete various strategic financing initiatives during this timeframe including the previously announced investment from Taykwa Tagamou Nation."

The reference to investment from Taykwa Tagamou Nation is particularly noteworthy as it demonstrates the company's commitment to developing meaningful partnerships with Indigenous communities affected by its operations. This approach aligns with growing investor expectations for responsible resource development that includes shared benefits with local communities.

The NetZero Approach

A distinguishing aspect of Canada Nickel's strategy is its focus on developing "NetZero" production processes for nickel, cobalt, and iron. This approach responds to increasing market demand for responsibly sourced materials with minimal environmental footprints, particularly for electric vehicle manufacturing and renewable energy infrastructure.

The company has applied for trademarks on terms including NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™, signaling its intention to position these products as premium, low-carbon alternatives in their respective markets. This strategy could potentially command price premiums as downstream manufacturers face growing pressure to reduce the carbon intensity of their supply chains.

For investors, this focus on low-carbon production methods represents a potential competitive advantage in markets increasingly driven by environmental considerations. As automotive manufacturers and battery producers face stricter environmental standards and consumer expectations, suppliers of verifiably low-carbon materials may secure preferred supplier status and more favorable contract terms.

Regional Advantages and Supply Chain Security

Canada Nickel has highlighted the strategic advantages of the Timmins region for critical mineral development. The area's established mining infrastructure, experienced workforce, and supportive community environment create favorable conditions for efficient project development.

Additionally, the company emphasizes how strengthening Ontario's critical minerals sector contributes to broader North American supply chain security. With geopolitical tensions affecting global supply chains and growing recognition of minerals like nickel as strategically important, domestically sourced materials offer security advantages that may be increasingly valued by end users.

The proposed Ontario legislation represents part of a broader trend toward securing domestic supply chains for materials deemed critical to economic and national security. For Canada Nickel, this policy environment creates potentially favorable conditions for project advancement, financing, and eventual offtake agreements with customers prioritizing supply chain resilience.

Outlook for Investors

For investors considering Canada Nickel, several factors merit attention:

Growth Market Exposure: The company provides direct exposure to the growing market for battery metals and critical minerals essential to electrification and decarbonization efforts. The nickel market in particular faces potential supply constraints as demand from electric vehicle manufacturers increases.

Jurisdictional Advantages: Operating in Ontario offers political stability, established mining regulations, and supportive government policies – factors that can significantly reduce development risk compared to projects in less stable jurisdictions.

ESG Positioning: The company's emphasis on low-carbon production methods, Indigenous partnerships, and environmental stewardship aligns with growing investor focus on ESG factors. This positioning may attract investment from funds with specific ESG mandates.

Development Timeline: Investors should monitor the company's progress through permitting, financing, and construction phases. The recent loan extension and reference to strategic financing initiatives suggest active efforts to secure the capital needed for continued advancement.

Market Dynamics: The broader nickel market faces complex supply-demand dynamics, with potential price volatility affecting project economics. Long-term supply contracts with downstream manufacturers could provide revenue stability but would need to be evaluated against spot market opportunities.