Mr. Mark Selby reports

CANADA NICKEL FILES BANKABLE FEASIBILITY STUDY FOR ITS CRAWFORD NICKEL SULPHIDE PROJECT

Canada Nickel Company Inc. has filed a bankable feasibility study (BFS) for its wholly owned Crawford nickel sulphide project located in Timmins, Ont., Canada. The BFS is available on SEDAR+ and on the company's website. The BFS, titled "Crawford Nickel Sulphide Project NI 43-101 Technical Report and Feasibility Study," was independently prepared by Ausenco Engineering Canada Inc., in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101), as previously announced in a news release dated Oct. 12, 2023.

Crawford, located in the Timmins nickel district, is the world's second-largest nickel reserve (1). Once in production, it is also expected to become one of Canada's largest carbon storage facilities and be a net negative contributor of carbon dioxide over the project life.

The previously announced highlights from the Crawford BFS are listed below (all amounts in U.S. dollars, unless otherwise indicated).

Crawford 2023 BFS highlights:

• Robust economics:
  • After-tax $2.5-billion net present value (discounted at 8 per cent) and 17.1-per-cent internal rate of return, increasing to $2.6-billion NPV 8 per cent and 18.3-per-cent IRR, with projected carbon capture and storage tax credits;
• Large initial mineral reserve anchored by significantly larger mineral resource:
  • Proven and probable reserves of 3.8 million tonnes contained nickel from 1.7 billion tonnes ore grading 0.22 per cent nickel make Crawford the world's second-largest nickel reserve (1). Reserves are hosted in a measured and indicated resource, which increased by 74 per cent (compared with the 2022 resource estimate) to 6.0 million tonnes. With additional inferred mineral resources of 3.7 million tonnes contained nickel, Crawford is the world's second-largest nickel resource (1);
• Large scale, low cost, long life:
  • Annual average nickel production of 83 million pounds (38,000 tonnes) over a 41-year life, with production of 48,000 tonnes per annum nickel, 0.8 ktpa cobalt, 13,000 ounces palladium and platinum, 1.6 Mtpa iron and 76 ktpa chrome over 27-year peak period;
  • Net life-of-mine C1 cash cost of 39 cents per pound nickel (byproduct basis) place Crawford in the first quartile of the cost curve (2). The net all-in sustaining cost, on a byproduct basis, is $1.54 per lb nickel;
  • Projected revenue exceeds $48-billion, or more than $1-billion annually over project life;
• Significant improvement in recoveries from preliminary economic assessment:
  • Nickel: 10-per-cent improvement life-of-mine (41 per cent versus 37 per cent used in PEA) and a 23-per-cent improvement in phase I/phase II compared with PEA (46 per cent versus 37 per cent in the PEA);
  • Improvements to life-of-mine recovery for iron: 46 per cent, cobalt: 38 per cent and chrome: 5 per cent;
• Significant earnings and free cash flow generation:
  • Projected annual EBITDA (earnings before interest, taxes, depreciation and amortization) of $810-million and FCF of $540-million over peak period, annual EBITDA of $667-million and FCF of $431-million over project life;
• Minimization of carbon footprint:
  • Minimal carbon footprint of 4.8 tonnes carbon dioxide per tonne of nickel in concentrate, 2.3 tonnes CO2 per tonne of nickel equivalent (2) ((NiEq), largely due to electrically powered mining fleet, including trolley-assist trucks, that are expected to reduce diesel consumption by over 40 per cent compared with diesel-powered equipment;
  • Implementation of the company's proprietary IPT (in-process tailings) carbonation process is anticipated to allow capture and storage of 1.5 million tonnes CO2 annually during 27-year peak period, the bulk of which will be sold to third parties;
  • Anticipated net negative carbon footprint from carbon capture and storage capacity of 30 tonnes CO2 per tonne of nickel after accounting for project footprint.

Qualified person

Stephen J. Balch, PGeo (Ontario), vice-president of exploration of Canada Nickel and a qualified person, as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel.

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.

(1) Source: Wood Mackenzie, nickel cost service Q3 2023 data.

(2) Nickel equivalent using prices of $21,000/t Ni, $40,000/t Co, $1,350/oz Pd, $1,150/oz Pt, $325/t Fe (equivalent to $89/t iron ore price) and $3,860/t chromium; metallurgical recoveries based on average of 41 per cent Ni, 11 per cent Co, 48 per cent Pd, 22 per cent Pt, 53 per cent Fe, 28 per cent Cr.

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