Mr. Mark Selby reports

CANADA NICKEL SIGNS DEFINITIVE AGREEMENTS FOR CREATION OF EXPLORECO AND CONSOLIDATION OF CRAWFORD SURFACE RIGHTS

Canada Nickel Company Inc. signed two definitive agreements on Jan. 6, 2025 -- the previously announced transaction with Noble Mineral Exploration (see July 8, 2024, news release) and a definitive agreement with the primary surface rights holder in Crawford and surrounding townships -- to secure access to 32,000 acres of surface rights required to build the Crawford nickel sulphide project.

Mark Selby, chief executive officer, said: "Today's announcements secure access to 32,000 acres of surface rights and is another critical step for the company as we complete our permitting and move toward a construction decision on Crawford in 2025. As part of the surface rights agreement, the company will transfer 47,750 acres of mining rights in Kingsmill and Mabee townships -- where no known exploration targets exist -- to the surface rights holder. This transfer aims to create future certainty over a substantial area of land, facilitating the effective development of sustainable forestry and wildlife habitat preservation. We are proud of our progress in unlocking the potential of the Crawford project and the Timmins nickel district, building a future that benefits the environment and supports future generations."

ExploreCo subsidiary formation and consolidation transaction

Per the prior news release on July 8, 2024, Canada Nickel and Noble have now entered into a definitive agreement, whereby Canada Nickel and Noble will contribute certain mining properties, including the existing Mann joint venture, into a new private company (ExploreCo) to consolidate their respective interests in the portfolio of nickel projects northeast of Timmins, Ont. As part of the transaction, Canada Nickel will consolidate ownership of the mining rights and access to the surface rights for certain key patents in Aubin, Crawford, Carnegie, Dargavel, Kidd, Lennox, Lucas, Nesbitt, Prosser and Wark townships currently held by Noble, which facilitates and simplifies future development of Crawford and other nearby regional properties held by Canada Nickel.

The transaction and formal formation of ExploreCo is expected to close by Jan. 31, 2025, and is subject to any required approvals of the TSX Venture Exchange.

Surface rights transaction

Canada Nickel has entered into a definitive agreement with the surface rights holder for an option to acquire 32,000 acres of surface rights in Crawford and surrounding townships. As part of the transaction, Canada Nickel has agreed to issue 5.5 million shares and will transfer mining rights (not required for any exploration target) to approximately 47,750 acres in Kingsmill and Mabee townships. The surface rights transaction is subject to the approval of the TSX Venture Exchange. Additional consideration will be paid to exercise the option on a construction decision. The company has the right to exercise the option by Dec. 31, 2026, and can extend the option annually up to a further five years for an additional payment for each extension. The surface rights holder has asked that all other terms remain confidential. The additional consideration to acquire the surface rights is not material in the context of the overall Crawford project capital cost and the extension payment is also not material.

About Canada Nickel Company Inc.

Canada Nickel 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 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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