Mr. Mark Selby reports

NETZERO METALS AWARDS ENGINEERING CONTRACTS AND ADVANCES ENGINEERING STUDIES ON TWO PROCESSING FACILITIES

NetZero Metals Inc., a wholly owned subsidiary of Canada Nickel Company Inc., has provided an update on the progress of engineering studies for two processing facilities -- a nickel processing facility, and a stainless steel and alloy production facility -- in the Timmins nickel district.

Key engineering contracts for the facilities have been awarded to SMS group, Metso and Ausenco Engineering Canada ULC.

NetZero Metals is advancing design work to develop two processing facilities to fill a critical link in the development of North American critical minerals supply chains and the province's electric vehicle strategy. Each production facility is expected to utilize Canada Nickel's carbon storage capacity at its Crawford nickel project to deliver net-zero carbon nickel, and stainless steel and alloy production through capture of the CO2 (carbon dioxide) emissions from the downstream operation. The studies are progressing well and completion of feasibility studies remains targeted for year-end.

Mark Selby, chief executive officer of Canada Nickel, said: "We are very pleased to work with global engineering leaders like SMS, Metso and Ausenco to advance our NetZero Metals processing plants. These processing facilities will position the Timmins nickel district and Canada at the forefront of the global transition to greener energy and materials. We are proud to lead the way in the development of new capacity to meet the growing demand for the local supply of critical minerals and, most importantly, zero carbon, environmentally responsible production in North America."

SMS group, an industry leader in the supply of steel-making equipment and plant design, has been awarded the initial scope for the NetZero Metals stainless steel and alloy plant, which will treat the Crawford iron-chrome-nickel concentrate and other feeds to produce a blend of stainless steel and alloys. The target start-up date of the steel plant is year-end 2027, aligned with expected first production from Crawford.

Andy Gribben, vice-president of metallurgy sales at SMS group, said: "We are thrilled to have been chosen by NetZero Metals for such a pivotal role in advancing sustainable nickel and stainless steel production. At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry. Our metallurgical know-how and engineering skills, combined with our digital expertise and plant technology, enables us to be the leading partner on this project. We look forward to contributing our expertise to this transformative, environmentally responsible project."

Metso, an industry leader for the supply of pyrometallurgical process equipment, has been awarded the key portions of the initial nickel plant scope, which will process the Crawford nickel concentrate as well as third party feeds to produce a blend of nickel and nickel-cobalt products suitable for the steel and battery markets. The company is targeting an early start-up of the nickel plant in the first part of 2027 by leveraging an existing brownfield site for which positive discussions are already under way.

Ausenco, a long-term partner of Canada Nickel Company, is performing the overall facility engineering and packaging of staged engineering studies.

About the nickel processing facility

Over three phases, the nickel processing plant is expected to reach a capacity of more than 80,000 tonnes of nickel annually, which is expected to make it the largest nickel processing facility in North America. Subject to permitting approvals, the plant plans to begin production by the start of 2027 utilizing third party feeds. The facility is expected to be further expanded with the start-up and expansion of Canada Nickel's Crawford project. This plant is expected to utilize proven, low-environmental-footprint technology to produce high-quality nickel products, catering to the needs of both the stainless-steel/superalloy and the electric vehicle markets.

About the stainless-steel and alloy processing facility

In addition to the nickel processing plant, a stainless steel and alloy production facility is expected to be established to process the iron-chrome-nickel concentrate from the Crawford nickel project and other feeds to be transformed into more than one million tonnes of alloy products, including more than 500,000 tonnes of 304-grade stainless steel annually. The facility is expected to grow along with the expansion at Crawford nickel project and would become the largest stainless-steel production facility in Canada. Production is planned to begin by year-end 2027, aligning with the planned start-up of the Crawford mine, subject to permitting approvals. Discussions are currently under way with leading global ferroalloy and stainless producers to partner on this project.

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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