Mr. Mark Selby reports

CANADA NICKEL ANNOUNCES SUCCESSFUL COMPLETION OF CARBON STORAGE PILOT PLANT, CONFIRMS VALUE OF CARBON STORAGE CAPACITY; INTEGRATED FEASIBILITY STUDY TO BE RELEASED ON OCTOBER 12, 2023

Canada Nickel Company Inc. has successfully completed its carbon storage pilot plant, demonstrating the value of its novel carbon storage process, in-process tailings (IPT) carbonation.

The company processed more than seven tonnes of tailings and confirmed the engineering design parameters for IPT carbonation for incorporation in the integrated feasibility study (IFS) expected to be released on Oct. 12, 2023. The pilot plant also was utilized to successfully apply the IPT carbonation process to material from a third party's project, demonstrating the potential to commercialize the process for other projects, including the company's regional nickel properties in the Timmins nickel district.

In addition, a study by a leading strategy house confirms that the Canada Nickel Crawford project could reasonably expect in excess of $25 per tonne of carbon dioxide in storage fees from its IPT carbonation process based on publicly known storage fees and given communicated carbon price and policy status. The study also confirmed the potential requirement for more than 20 million tonnes of annual storage capacity of CO2, given communicated carbon price and CCUS ITC (carbon capture, utilization and storage investment tax credit) status, from a population of approximately 150 potential emitters, with approximately 50 emitters concentrated in four distinct clusters in Sudbury, Sault Ste. Marie, Toronto and Sarnia.

Mark Selby, chief executive officer of Canada Nickel, said: "Our successful pilot plant results, coupled with this study, confirm the significant value potential of the company's IPT carbonation process. The potential demand for more than 20 million tonnes annually of CO2 storage is well in excess of the one-million-tonne capacity for Crawford, which supports our company's belief that our Timmins nickel district can anchor a zero-carbon industrial cluster in the Timmins-Cochrane region. The work also supports our belief that the Crawford project can qualify a portion of its capital expenditures to take advantage of the Carbon Capture and Storage refundable Carbon Capture and Storage refundable tax credits announced by the federal government in its 2022 budget. We look forward to the release of our feasibility study on Oct. 12, which we expect to support our belief that Crawford is poised to be a leader in the energy transition through the large-scale production of critical minerals, including nickel and cobalt, and to become the sole North American producer of chromium, while also supporting Canada's climate objectives through large scale carbon capture and storage."

Mr. Selby continued: "As we rapidly advance Crawford towards production, the company continues to build its team to ensure we can maximize the value from our project. I am very pleased that Adam Schatzker has agreed to join the team as vice-president, corporate development, focused on unlocking the value of our IPT carbonation process and the potential for a zero-carbon industrial cluster in the Timmins-Cochrane region. The company continues to target receipt of permits by mid-2025 with construction to follow. Permitting remains on track and good progress is being made through the second stage of the federal permitting process."

IPT carbonation process

Canada Nickel's Crawford project is hosted in ultramafic rock, which naturally absorbs and sequesters CO2. Canada Nickel has developed the novel IPT carbonation process which involves injecting a concentrated source of CO2 into tailings generated by the milling process for a brief period of time. This simple process captures CO2 geologically in the tailings while they are still in the processing circuit, rather than after they have been finally deposited.

Carbon capture, utilization and storage and tax credit

The company believes that the successful incorporation of IPT carbonation could potentially allow a portion of the company's project capital expenditures to become eligible for the carbon capture and storage refundable investment tax credits of 37.5 per cent to 60 per cent for years 2022 to 2030 and 18.75 per cent to 30 per cent for years 2031 to 2040, as announced in the 2022 federal budget. The interest received from multiple large multinational companies pursuing carbon storage solutions further supports the company's belief that the mineral sequestration utilized by the company may be considered an effective carbon storage approach that would meet Environment and Climate Change Canada requirements.

Management appointment

Mr. Schatzker has had an almost 30-year career focused primarily on mining. More than 20 years of his career was on the sell side in both equity research and investment banking with seven of those years at RBC Capital Markets as a director in equity research covering base metals, mining royalties, uranium and fertilizers. In his equity research roles, Mr. Schatzker provided valuation and investment recommendations on more than 40 companies and has been responsible for commodity price forecasts for base metals, uranium and fertilizers. Mr. Schatzker also spent more than three years in corporate development for mining companies, including as executive vice-president, strategy and business development, at Uranium One, the fourth-largest uranium producer. Mr. Schatzker has also spent time working for a mining private equity fund identifying, evaluating and executing on potential investment opportunities.

Feasibility study conference call

Canada Nickel will be hosting a webcast and conference call on Thursday, Oct. 12, 2023, at 11 a.m. Eastern Time to discuss the feasibility study.

Conference call details:

Date: Thursday, Oct. 2, 2023

Time: 11 a.m. ET

Participants may join the webcast and call as follows:

Dialling local Toronto: 416-764-8688

Dialling North American toll-free: 888-390-0546

Dialling international toll-free:

Australia: 1800076068

Germany: 08007240293

Switzerland: 0800312635

South Africa: 0800994942

United Kingdom (England): 448006522435

For those unable to participate, a Web-based archive of the conference call will be available for playback at the same audience URL used to access the live webcast.

Qualified person and data verification

Arthur G. Stokreef, PEng (Ontario), manager of process engineering and geometallurgy, and a qualified person as such term is defined by National Instrument 43-101, 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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