Mr. Mark Selby reports

CANADA NICKEL ANNOUNCES FORMATION AND PARTIAL SALE OF ROYALTYCO SUBSIDIARY

Canada Nickel Company Inc. signed a binding letter of intent with Edmiston Drive Capital Corp. (EDCC) on March 17, 2025, whereby a new royalty company (RoyaltyCo) will be created to hold net smelter return (NSR) royalties on all of Canada Nickel regional exploration properties in the Timmins nickel district, with the exception of Crawford and other targets (Kingsmill and Dargavel), located on the original Project 81 patents.

Subject to the satisfaction of applicable conditions precedent, Canada Nickel anticipates it will receive $8-million in cash and 8.9 million shares of EDCC to hold a 62-per-cent interest in EDCC upon closing.

Mark Selby, Canada Nickel's chief executive officer, said: "We are very excited to work with EDCC toward the creation of a new royalty company, which will hold NSR royalties of the company's portfolio of properties in the Timmins nickel district, which, when combined, we expect to be among the world's largest nickel sulphide resources. We have published resources on two of these properties and expect to announce a further six resources by mid-2025. This transaction is just one further step in unlocking value while minimizing equity dilution for Canada Nickel shareholders. This world-scale portfolio is just the start for EDCC, which will seek the acquisition or creation of new royalties and streams that align with its low-carbon and low-environmental-footprint objectives."

RoyaltyCo formation and transaction details

Canada Nickel will grant 1-per-cent NSR royalty interests in the subject properties to RoyaltyCo, which will then (subject to the satisfaction of closing conditions) amalgamate with a wholly owned subsidiary of EDCC in exchange for $8-million in cash and 8.9 million common shares of EDCC. One such closing condition is the completion by EDCC of a financing, whereby $9-million will be raised through the issuance of a combination of common and preferred shares. The proceeds of such financing will be used for the closing payment to Canada Nickel and for general corporate purposes. After giving effect to the financing, Canada Nickel expects that its equity interest in EDCC will be approximately 62 per cent. EDCC is a reporting issuer in Ontario, British Columbia and Alberta, which may allow for a more straightforward listing, if and when EDCC determines that a stock exchange listing is in the best interest of its shareholders.

The terms of the LOI are binding subject to the satisfaction of certain closing conditions.

The board of directors of EDCC, following completion of the transaction, shall consist of one director appointed by the current directors of EDCC, two directors appointed by Canada Nickel and two independent directors.

The transaction is expected to close by April 30, 2025, and, among other approvals, is subject to any required approvals of the TSX Venture Exchange.

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.

We seek Safe Harbor.