Mr. Mark Selby reports

CANADA NICKEL ANNOUNCES CORPORATE UPDATES

Canada Nickel Company Inc. has extended the repayment date of the $12-million (U.S.) loan facility announced Sept. 18, 2023, with Auramet International Inc. from Jan. 18, 2024, to Feb. 16, 2024. The loan will carry an interest rate of 1.25 per cent per month for the extension period.

Canada Nickel has also entered into seven purchase and sale agreements with arm's-length vendors, pursuant to which the company has agreed to acquire mining claims in the Timmins, Ont., region in exchange for the issuance by the company of an aggregate of 723,000 common shares of the company and the payment by the company of an aggregate of $67,760 in cash. Under one of the agreements, the company agreed to grant to the vendor a 2-per-cent net smelter returns (NSR) royalty on the applicable claims. The company has the exclusive option at any time until the property enters into commercial production to repurchase one-quarter of the royalty (being a 0.5-per-cent net returns interest) from the vendor for $1-million. Under four other agreements, the company agreed to grant to the vendors thereunder royalties equalling a 2-per-cent net returns interest on the applicable claims. The company has the exclusive option at any time, and from time to time, to repurchase one-half of each such royalty (being a 1-per-cent net returns interest) from the vendors for a cash purchase price of $1-million per royalty.

Canada Nickel has further agreed to issue 100,000 common shares to Taykwa Tagamou Nation (TTN) pursuant to the terms of the exploration agreement between Canada Nickel and TTN and 100,000 common shares to Apitipi Anicinapek Nation (AAN) pursuant to the terms of the exploration agreement between Canada Nickel and AAN, in each case in respect of the company's regional properties surrounding its Crawford project. The exploration agreements continue important relationships through which Canada Nickel recognizes and respects the aboriginal and treaty rights of TTN and AAN while engaged in exploration activities on the company's properties. The exploration agreements also each provide for the company to make certain cash payments to TTN and AAN based on the cost of the company's exploration program on the subject properties.

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 issuances.

The company also wishes to confirm that, in connection with the private placement of flow-through units announced in the company's news release dated Jan. 2, 2024, the company has agreed to pay each of Scotiabank and Deutsche Bank a cash fee of $520,380 (being an amount equal to 1.5 per cent of the gross proceeds of the offering).

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.

We seek Safe Harbor.