Mr. Mark Selby reports

CANADA NICKEL ANNOUNCES PRIVATE PLACEMENT OF FLOW-THROUGH shareS FOR GROSS PROCEEDS OF C$4.5 MILLION, BRINGING AGGREGATE GROSS PROCEEDS FROM PRIVATE PLACEMENTS TO C$17.5 MILLION

Canada Nickel Company Inc. has arranged a fully subscribed non-brokered private placement for the sale of 4,245,750 common shares of the company that will qualify as flow-through shares (as defined in Subsection 66(15) of the Income Tax Act (Canada)) at a price of $1.06 per FT share for gross proceeds of approximately $4.5-million.

The company is also pleased to announce that the company's previously announced best efforts private placement is fully subscribed for the sale of 15,295,000 units of the company at a price of 85 cents per unit for gross proceeds of $13,000,750, which includes the gross proceeds from the full exercise of the agents' option. The aggregate gross proceeds to the company from the offerings will be approximately $17,500,750.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to purchase one common share of the company at a price of $1.20 at any time on or before that date which is 36 months after the unit closing date (as defined herein).

Red Cloud Securities Inc. and Scotiabank are acting as co-lead agents and joint bookrunners, on behalf of a syndicate of agents in connection with the brokered offering. The company plans to use the net proceeds of the brokered offering for the advancement of the company's wholly owned Crawford nickel sulphide project as well as for working capital and general corporate purposes.

The gross proceeds from the flow-through offering will be used by the company to incur (or be deemed to incur) eligible resource exploration expenses that will qualify as (i) Canadian exploration expenses (as defined in the Income Tax Act (Canada)), (ii) flow-through critical mineral mining expenditures (as defined in Subsection 127(9) of the Income Tax Act (Canada)), and (iii) eligible Ontario critical mineral exploration expenditures within the meaning of Subsection 103(4.1) of the Taxation Act, 2007 (Ontario). Qualifying expenditures in an aggregate amount not less than the gross proceeds raised from the issuance of the FT shares will be incurred (or deemed to be incurred) by the company on or before Dec. 31, 2026, and will be renounced by the company to the initial purchasers of the FT shares with an effective date no later than Dec. 31, 2025.

The brokered offering is scheduled to close on or around June 26, 2025. The closing of the offerings are subject to certain conditions including, but not limited to, the listing of the unit shares, FT shares and warrant shares on the TSX Venture Exchange, and the receipt of all necessary approvals including the approval of the TSX-V. The non-brokered private placement of FT shares is scheduled to close on or around July 4 th, 2025.

The company shall pay to the agents, on the unit closing date, a cash commission of 6.0 per cent of the gross proceeds raised in respect of the brokered offering other than gross proceeds from sales to certain purchasers on a president's list, for which a reduced agent's commission of 3 per cent of such proceeds shall be payable. In addition, at the unit closing date, the company shall issue to the agents warrants of the company, exercisable for a period of 36 months following the unit closing date, to acquire in aggregate that number of common shares of the company which is equal to 6.0 per cent of the number of units sold under the brokered offering at an exercise price equal to the unit price, subject to a reduced number of broker warrants to be issued to the agents as is equal to 3 per cent of the number of units sold to purchasers on the president's list.

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, 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 nickel district.

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