Mr. Mark Selby reports

CANADA NICKEL REPORTS ENCOURAGING INITIAL METALLURGICAL RESULTS FROM ITS TEXMONT PROJECT, ANNOUNCES CONSOLIDATION OF TEXMONT REGION

Canada Nickel Company Inc. has released the initial results from preliminary metallurgical test work on the first set of samples from the Texmont nickel sulphide project, which demonstrates a range of grades could be processed using a simple process flowsheet and recoveries that meet or exceed historical results.

Mark Selby, chief executive officer, said: "Texmont continues to deliver excellent results, with initial metallurgy yielding nickel and cobalt recoveries and concentrate grades exceeding our expectations. Further, these results were achieved with a simple flowsheet which will maximize potential opportunities to toll mill our initial production. I look forward to the next phases of work while we complete our initial resource on Texmont and complete a preliminary economic analysis (PEA) by year-end."

Mr. Selby continued: "Given our success at Texmont, we capitalized on the opportunity to acquire regional mining claims, consolidating 20 kilometres of property with the potential to find more Texmont-style deposits. We have signed a total of 10 agreements which consolidate 9,520 hectares of mining claims. We view this as an important and highly prospective addition to our Timmins nickel district."

Description of results

The Texmont property is a past-producing mine, located approximately 36 kilometres south of Timmins, that contains a large ultramafic body. Through analysis of historic drill data and supported by new drilling (refer to news release June 1, 2023), Canada Nickel has identified a near-surface, high-grade zone of greater than 1 per cent nickel wrapped within a moderate-high-grade zone of 0.6 per cent to 1 per cent nickel. The company is evaluating the potential for near-term production from Texmont through open-pit mining of this moderate-high-grade material.

The table entitled "Open circuit metallurgical test results at Texmont" summarizes the results of open circuit testing completed at XPS (a Glencore company), on three samples from Texmont, with head grades ranging from 0.67 per cent to 1.52 per cent nickel. The samples were selected to represent the moderate-high-grade zone of the deposit and were tested using a simple flowsheet with samples ground to 100 microns, that does not require desliming, and which offers flexibility for toll milling. Nickel recoveries were in the range of 79 per cent to 84 per cent, while cobalt recoveries were similarly high, ranging from 77 per cent to 83 per cent. The mineralization shows excellent upgrading potential, with final cleaner concentrate grades between 18 per cent to 28 per cent nickel and 0.44 per cent to 0.7 per cent cobalt, which is considered a high-grade concentrate for material with pentlandite-style mineralization. The company is very encouraged by these results, which are in line with and exceeding the historical results documented in the 2007 Fletcher Nickel National Instrument 43-101 report, supporting the potential for a near-term open-pit operation.

Next steps in metallurgical testing

Through the summer months, Canada Nickel expects to finalize the metallurgical flowsheet by conducting locked cycle and metallurgical variability tests. This test program will be used to define recovery equations for the Texmont PEA, which is expected to be released by the end of 2023.

Acquisition of Texmont trend

Canada Nickel, through a series of 10 purchase and sale agreements (including one previously announced for 54,000 common shares) has acquired 403 additional mining claims within the Texmont ultramafic trend. The company will issue a total of 515,400 common shares (461,400 and 54,000) and make cash payments totalling $300,550. Each of the foregoing issuances of common shares are subject to the prior approval of the TSX Venture Exchange, and the shares will be subject to a four-month hold period under Canadian securities laws from the date of the respective issuance.

Qualified person and data verification

Arthur G. Stokreef, PEng (Ontario), manager of process engineering and geometallurgy, is a qualified person as such term is defined by National Instrument 43-101, and has reviewed and approved the technical information in this news release on behalf of Canada Nickel Company.

About Canada Nickel Company Inc.

Canada Nickel Company is advancing the next generation of nickel sulphide projects to deliver nickel required to feed the high-growth electric-vehicle and stainless-steel markets. Canada Nickel Company 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. Canada Nickel provides investors with leverage to nickel in low-political-risk jurisdictions. Canada Nickel is currently anchored by its 100-per-cent-owned, flagship Crawford nickel-cobalt sulphide project in the heart of the prolific Timmins-Cochrane mining camp.

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