Mr. Mark Selby reports

CANADA NICKEL ANNOUNCES BOUGHT DEAL PRIVATE PLACEMENT IS OVERSUBSCRIBED AND FULLY ALLOCATED

Canada Nickel Company Inc. has provided an update of its previously announced bought deal private placement, pursuant to which the underwriters (as defined herein) have agreed to purchase for resale 10 million units of the company at a price of $1.20 per unit for gross proceeds of $12-million.

Red Cloud Securities Inc. is acting as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters in connection with the offering (as defined herein). The company has granted to the underwriters an option, exercisable in full or in part up to 48 hours prior to the closing date, to purchase for resale up to an additional 2.5 million units at the offering price for up to $3-million in additional gross proceeds. The underwritten offering and the securities issuable upon exercise of the overallotment option shall be collectively referred to as the offering.

The offering is oversubscribed. The underwriters intend to fully exercise the overallotment option for additional gross proceeds of $3-million. If the overallotment option is exercised in full, the gross proceeds of the offering will be $15.0-million.

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 $1.80 at any time on or before that date which is 36 months after the closing date (as defined herein).

The company plans to use the net proceeds of the 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 offering is scheduled to close on or around Dec. 11, 2025, and is subject to certain conditions, including, but not limited to, the listing of the unit shares and warrant shares on the TSX Venture Exchange, and the receipt of all necessary approvals, including the approval of the TSX-V.

The units will be offered: (a) by way of a private placement in all of the provinces of Canada pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws; (b) in the United States or to, or for the account or benefit of, U.S. persons, by way of a private placement pursuant to the exemptions from the registration requirements provided for under the U.S. Securities Act of 1933, as amended; and (c) in jurisdictions outside of Canada and the United States on a private placement or equivalent basis, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction. The securities to be issued pursuant to the offering to purchasers in Canada will be subject to a four-month hold period in Canada pursuant to applicable Canadian securities laws. The units will be offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirements in Canada available under Ontario Securities Commission Rule 72-503, and, accordingly, the securities to be issued pursuant to the offering to purchasers outside of Canada are not expected to be subject to a four-month hold period in Canada.

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 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 nickel district.

We seek Safe Harbor.