Ms. Shirley Anthony reports

CANICKEL SIGNS OPTION AGREEMENT FOR PROPOSED SALE OF THE BUCKO LAKE MINE FOR UP TO C$80 MILLION

Canickel Mining Ltd. has signed an option agreement with Cobalt One Energy Corp. and Blackstone Minerals Ltd. pursuant to which Cobalt One has been granted the exclusive right and option for a 12-month period to purchase Canickel's 100-per-cent-owned Bucko Lake mine project located approximately 110 kilometres southwest of Thompson, Man., for total consideration of up to $80-million.

"After every effort was made to restructure Canickel's corporate debt with our creditor, it was determined that the most viable path forward for the company was to sell the Bucko Lake mine to a motivated buyer with a strong balance sheet that can advance the project," stated Shirley Anthony, chief executive officer of Canickel. "To that end, we are pleased to have signed an option agreement with Cobalt One, which is owned by Blackstone Minerals, a dynamic ASX-listed, nickel-focused resource company headquartered in Perth, Australia. Their impressive board and highly experienced executive team have exhibited strong conviction in the technical merits of the Bucko Lake mine, and we are confident they will have the resources to complete the purchase of the project in the coming year."

Key option agreement terms

Under the option agreement executed on Dec. 4, 2023, and in consideration of a non-refundable payment of approximately $1.12-million to Canickel, Cobalt One and Blackstone Minerals have been granted the exclusive right and option for a 12-month period (subject to extension from time to time in accordance with the terms of the option agreement) to purchase the project in accordance with the settled terms of an asset purchase agreement (APA).

Under the terms of the APA, Cobalt One and Blackstone Minerals will agree to acquire from Canickel all assets relating to the project and several known historical satellite deposits for a total purchase price of up to $80-million. The purchase price would be paid to Canickel in four tranches as outlined below:

1. Initial cash payment of $20-million (less the Option price and any option extension payments paid by Cobalt One to Canickel) and $10-million in Blackstone shares upon closing;
2. Second cash payment of $10-million to be paid 18 months following the closing date;
3. Third cash payment of $15-million to be paid upon the project achieving fully permitted status;
4. Fourth cash payment of $25-million upon the project achieving commercial production.

The option may be exercised by Cobalt One and Blackstone Minerals anytime during the 12-month period upon delivery of an option exercise notice to Canickel. Should Cobalt One exercise the option, then within five business days of the delivery of the notice, Cobalt One, Blackstone and Canickel shall duly execute the APA.

Should the option be exercised, and the transaction closed according to the terms of the APA, Cobalt One and Blackstone Minerals would assume all of Canickel's liabilities and obligations with respect to all assets relating to the project and work actively and diligently in advancing the project toward a fully permitted status and toward commercial production as soon as reasonably practicable and without delay.

Closing of the asset sale remains subject to the satisfaction or waiver of all closing conditions set out in the APA, including the approval by the shareholders of both Canickel and Blackstone and the approval of the TSX Venture Exchange and Australian Securities Exchange, respectively, and other customary closing conditions.

Neither Blackstone Minerals nor Cobalt One is a non-arm's-length party of Canickel, as defined in the policies of the TSX Venture Exchange. No finder's fees will be paid to any party in connection with the option or the sale of the project.

Should the sale of the project be completed, the company will cease to have any operating activities and its assets will consist mainly of cash or cash equivalents as well as its entitlement to receive the additional payments from Blackstone Minerals as set forth above. The company will continue to hold significant corporate debt and the company's board and management will evaluate strategic options for how the company will move forward should the transaction take place.

About Canickel Mining Ltd.

Canickel Mining is a Canadian junior mining company that currently owns the Bucko Lake mine, currently on care and maintenance, near Wabowden, Man. From 2009 to 2012, nearly 450,000 tonnes of mineralized material were mined to produce 6.9 million pounds of nickel before the mine was put on care and maintenance due to low nickel prices.

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