Mr. Adrian Smith reports

FIRST ATLANTIC NICKEL ACCELERATES EXPLORATION AT ATLANTIC NICKEL PROJECT WITH EXPANDED CREW, LIDAR SURVEY, AND INFRASTRUCTURE UPGRADES

First Atlantic Nickel Corp. has provided an update on significant progress made at its wholly owned Atlantic nickel project in central Newfoundland, Canada. The company has successfully completed the phase 1 road upgrade program which included the installation of three bridges. Additionally, an all-weather camp has been established on the project site and the upgraded road and bridges will ensure reliable access throughout the year. District-scale awaruite nickel sampling program is well under way along the extensive 30-kilometre nickel-bearing trend, with an expanded crew to accommodate the increased size and scale of the program. Initial samples have been sent for analysis.

Highlights:

• Road and infrastructure upgrades completed which include the installation of three new bridges providing reliable year-round road access to the project and the establishment of a camp on the property suitable for year round use;
• Logistical planning and preparations under way for the 2024 drilling program, with drilling set to commence in the coming month;
• Dr. Ron Britten, a renowned nickel expert, on-site to aid in the discovery of significant new zones of mineralization;
• District-scale awaruite nickel sampling program in progress with an expanded ground team to cover the extensive 30-kilometre nickel-bearing trend accelerating exploration efforts;
• USGS has identified awaruite as a solution to nickel concentrate shortages (in North America) due to its easier concentration compared with nickel sulphide minerals;
• Project site visit video released, showcasing the progress and potential of the Atlantic nickel project;
• District-wide airborne lidar survey initiated, using advanced data collection and processing to identify outcrops, map geology and structures through vegetation across the 30-kilometre nickel trend centered on the Atlantic nickel project.

Adrian Smith, chief executive officer of First Atlantic, remarks: "We are thrilled with the advancements made at our unique nickel alloy project, including establishing an all-season camp located on the project site. The completion of road upgrades and the installation of heavy-duty bridges enables us to transport heavy equipment to the project year-round. The establishment of a road-accessible camp on the project site allows for efficient operations while reducing overall costs. Additionally, we're implementing a cutting-edge lidar survey with high-resolution orthophotos across the 30-kilometre district trend. This technology will significantly enhance our ability to identify key geological structures and discover new outcrops within the mineralized trend. This is paired with the current expanded field-team concentrating on intensive sampling and mapping to extend the mineralization surrounding our four primary target areas within this substantial nickel belt. This crucial work is paving the way for our upcoming, fully funded, maiden drilling program."

Atlantic nickel project summary

Awaruite (nickel-iron alloy) identified in rocks, tills and drill core samples over a 30-kilometre trend.

High nickel anomalies (up to 3,300 parts per million (ppm) in rocks, 4,260 ppm in soils) persist over 30 km, correlating with ultramafic units and magnetic surveys; 20 per cent of rock samples average higher than 2,000 ppm nickel (Ni).

Field crew working on expanding on four priority large target areas identified for immediate follow-up, including Atlantic Lake, Gulp Pond, Pipestone and Chrome Pond.

Strategically located in central Newfoundland, the Atlantic nickel project benefits from year-round road access, proximity to a hydroelectric dam, a temperate climate and flat terrain.

Lidar is a remote sensing technology that uses laser pulses to create detailed 3-D (three-dimensional) maps of the Earth's surface, revolutionizing large-scale geological exploration for mining. It enables geologists to efficiently map and analyze large areas with high accuracy, revealing subtle geological features crucial for mineral prospecting. By digitally removing vegetation and creating bare-earth models, lidar exposes hidden structures like faults, folds and mineralized zones that are difficult to detect through traditional methods. This high-resolution topographic data enhances the identification of potential ore deposits, improves structural analysis of rock formations, and optimizes drill target selection in mining exploration projects.

First Atlantic will utilize the lidar data gathered across the 30-kilometre mineralized trend to interpret geological structures, aid in geological mapping and identify previously undiscovered outcrops within the project area.

Awaruite (nickel-iron alloy)

Awaruite, a naturally occurring nickel-iron alloy, is a proven and environmentally safer solution to North America's domestic critical nickel supply shortage. Unlike conventional nickel sources, awaruite can be processed into high-grade concentrates exceeding 60 per cent nickel content without the need for smelting. This is particularly significant given the lack of smelting capacity in North America, which is largely controlled by China, and the Inflation Reduction Act's requirement that critical minerals in batteries be extracted or processed domestically or in countries with U.S. free trade agreements by 2025. As The Brookings Institution notes, "Even if the U.S. and EU were to dig more minerals out of the ground, many of these minerals would need to be shipped overseas for concentrating, refining and smelting without significant increases in U.S. and European mineral refining and smelting capacity."

The U.S. Geological Survey (USGS) highlighted awaruite's potential, stating: "The development of awaruite deposits in other parts of Canada may help alleviate any prolonged shortage of nickel concentrate. Awaruite, a natural iron-nickel alloy, is much easier to concentrate than pentlandite, the principal sulphide of nickel." Awaruite's unique properties enable cleaner and safer processing compared with conventional sulphide and laterite nickel sources, which often involve smelting or high-pressure acid leaching. These methods can release toxic sulphur dioxide, generate hazardous waste and could cause acid mine drainage. Awaruite's simpler processing eliminates smelting and intensive acid leaching, reducing greenhouse gas emissions and toxic chemical release risks, addressing concerns about the large carbon footprint and toxic emissions associated with battery metal refining, particularly for nickel.

The development of awaruite resources is crucial, given China's dominance in the global nickel market. Chinese companies refine and smelt approximately 68 per cent to 80 per cent of the world's nickel. Through investments, they also control an estimated 84 per cent of Indonesia's nickel output, the world's largest nickel supplier. Awaruite presents an environmentally safer, more sustainable and domestically processable nickel source that can meet the growing demand in the stainless steel and electric vehicle markets while reducing reliance on China-dominated foreign refining and smelting, including its significant control over Indonesia's nickel output.

About First Atlantic Nickel Corp.

First Atlantic Nickel is a Canadian mineral exploration company that owns 100 per cent of the Atlantic nickel project, a large-scale significant nickel awaruite project in Newfoundland and Labrador, Canada. By eliminating the need for smelting, nickel in the form of awaruite reduces dependence on foreign entities of concern for both supply and processing, thereby strengthening supply chain security. In 2022, the U.S. government designated nickel as a critical mineral, highlighting its importance to the nation's economy and security.

We seek Safe Harbor.