Mr. Robert Guzman reports

FIRST ATLANTIC NICKEL MOBILIZES DRILL RIG AFTER NEW DISCOVERIES AT ATLANTIC NICKEL PROJECT AND ACQUIRES ATLANTIS NICKEL PROJECT IN NEWFOUNDLAND

First Atlantic Nickel Corp. has discovered and expanded multiple new zones of visible awaruite (a naturally occurring nickel alloy), including two new high-priority areas, as part of the summer predrill sampling and mapping program at its wholly owned Atlantic nickel project in central Newfoundland, Canada. The sampling program expanded areas with visible awaruite nickel-alloy targets in multiple zones across the project by sampling 200-plus rock outcrop locations along the 30-kilometre trend, efficiently confirming and prioritizing targets for immediate drilling.

The company is pleased to announce the drill rig mobilization has begun for the company's first drill program at the Atlantic nickel project. This program will focus on multiple high-priority large-scale target zones identified and verified through the 2024 sampling program.

Atlantic Nickel project highlights:

• Drill rig mobilizing: The summer sampling program at 200-plus outcrops identified both new and expanded awaruite nickel alloy targets. A drill rig is mobilizing to the Atlantic nickel project to drill numerous widely spaced high-priority zones across the 30-kilometre trend.
• New discoveries: RPM and Super Gulp, two new high-priority nickel zones, expand existing awaruite mineralization across the 30-kilometre trend, confirming the system's scale.
• Super Gulp: New discovery, abundant visible disseminated awaruite (Ni alloy) grains are located approximately four kilometres south of Gulp Pond zone and approximately 20 kilometres south of historic hole 78-AL-01 in the Atlantic Lake zone.
• RPM: New discovery, large visible disseminated awaruite (Ni alloy) grains are located approximately 25 kilometres south of Atlantic Lake, near the southern end of a 30-kilometre trend, within one kilometre of the Chrome Pond showing (up to greater than 60 per cent chromium (Cr2O3)).
• Regional lidar: A survey was completed to map structures and geology and identify new outcrop targets under cover for sampling to identify new nickel targets within the 30-kilometre trend.
• Smelter-free nickel: Awaruite (Ni3Fe), a natural nickel-iron alloy containing approximately 77 per cent Ni, enables smelter-free magnetic separation, which could enhance the resilience and security of North America's critical mineral supply chain. Awaruite's clean efficient processing potential aligns with new U.S. Electric Vehicle IRA requirements stating that, beginning in 2025, an eligible clean vehicle may not contain any critical minerals processed by a foreign entity of concern.

Sampling program validates and expands drill targets

The summer sampling program aggressively targeted over 200 rock outcrops and subcrops, spanning 25 of the 30-kilometre nickel-bearing trend at the Atlantic nickel project. This extensive sampling has validated and expanded drilling targets.

Numerous rock samples displayed visible disseminated awaruite grains, confirming existing awaruite nickel occurrences and significantly expanding known mineralized areas in both length and width. The presence of visible awaruite validates new and existing nickel targets for immediate drilling.

High-priority awaruite-bearing nickel zones identified from north to south include:

• Atlantic Lake;
• Gulp Pond;
• Super Gulp (new discovery);
• Pipestone;
• Chrome Pond;
• RPM zone (new discovery).

Samples are being analyzed for awaruite and nickel content, with results pending. The identification of new targets, including the Super Gulp and RPM zone, alongside the confirmation of existing areas, underscores the project's immense district-scale potential.

The sampling program identified drill targets across 25 km of the 30-kilometre nickel trend, setting the stage for a multizone drill program to test multiple targets along a large portion of the project's strike length.

RPM zone

The RPM zone is a new discovery extending from the Chrome Pond area, where large visible disseminated awaruite (Ni alloy) grains (greater than 100 microns) were observed in several outcrops. These outcrops are located in areas with extensive surficial cover and near elevated nickel in soils, suggesting the potential for large volumes of hidden mineralized material. This makes the RPM zone a high-priority drilling target.

Situated approximately 25 km south of historic drilling at Atlantic Lake and at the southern end of the 30-kilometre trend, the RPM zone is approximately one km from the historic Chrome Pond occurrence, which returned values as high as 62.2 per cent chromium (CR203) (012A/08/Cr001).

The RPM target zone spans approximately 2.6 kilometres in length and is estimated to be 400 to 600 metres wide. Outcrops in the area are heavily weathered, appearing as light green to white-grey patches measuring tens of metres in diameter, consisting of brown to black serpentinized ultramafics, which are cut by serpentine-magnetite veins, microfractures or disseminated magnetite.

Super Gulp

The Super Gulp zone is a new discovery located approximately four km south of the Gulp Pond zone and about 20 km south of historic hole 78-AL-01 in the Atlantic Lake zone. Abundant visible disseminated awaruite (Ni alloy) grains were observed in this area, making it a promising target for further exploration.

The Super Gulp Zone extends the Big Gulp showing (Gulp Pond) target area for at least four km to the south, with visual awaruite mineralization observed throughout the extension. Light orange patches of subcrop and outcrop of medium-grained peridotite occur in the Super Gulp target spanning over a five-kilometre distance south to the Chrome Pond and RPM targets.

The Atlantis ultramafic project acquisition

The company is also pleased to announce that it has entered into an option agreement dated Sept. 16, 2024, with a group of arm's-length optionors to the company, whereby the optionors have granted the company the right to acquire a 100-per-cent undivided legal and beneficial interest in 13 mining licences consisting of 547 mineral claims covering 13,675 hectares located in northern Newfoundland.

The Atlantis project covers a large ultramafic complex of potential mantle source, known as the St. Anthony complex and White Hills peridotite. The White Hills peridotite and its underlying metamorphic rocks represent the basal portion of a partly eroded ophiolitic complex. The project consists of two ultramafic masses characterized by serpentinized peridotites, suggesting the potential for another large-scale ultramafic nickel system. Minimal historic work has been completed on the property, with notable assays reported by Cooper in 1937, including 54.05 per cent chromium (Cr2O3) at Long Pond and 0.37 per cent nickel at Southwest Direction Mountain.

The Atlantis project benefits from excellent infrastructure, with Highway 430 and power lines running through the property claims. The project is located in northern Newfoundland near St. Anthony, with an airport approximately 15 km away. First Atlantic plans to complete a detailed data compilation program and preliminary sampling and mapping to follow up on the highly elevated nickel samples.

The agreement: To earn a 100-per-cent interest in and to the Atlantis project, First Atlantic must pay to the optionors a total of $5,000 and issue to the optionors four million common shares within 10 business days of approval from the TSX Venture Exchange.

The Atlantis project is subject to a 2-per-cent net smelter return royalty. First Atlantic retains the right to buy back half the royalty equal to 1.0-per-cent NSR for $1-million at any time prior to the commencement of commercial production at the Atlantis project. The option agreement and proposed share issuances remain subject to approval by the TSX Venture Exchange. All security issuances will be subject to a statutory hold period of four months and one day from issuance in accordance with Canadian securities laws. No finders' fees were paid on this arm's-length option agreement.

Awaruite (nickel-iron alloy Ni2Fe, Ni3Fe)

Awaruite, a naturally occurring nickel-iron alloy composed of Ni3Fe or Ni2Fe, 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 noted, "Even if the [United States] and [European Union] 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 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, and 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, it also controls 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.

Investor information

The company's common shares trade on the TSX Venture Exchange under the symbol FAN, on the American OTCQB Exchange under the symbol FANCF, and on several German exchanges, including Frankfurt and Tradegate, under the symbol P21.

Adrian Smith, PGeo, is a qualified person as defined by National Instrument 43-101. The qualified person is a member in good standing of the Professional Engineers and Geoscientists Newfoundland and Labrador, and is a registered professional geoscientist (PGeo). Mr. Smith has reviewed and approved the technical information disclosed herein.

The company has not independently verified the historic samples reported in this release but has received data from the previous property owners and from the government of Newfoundland and Labrador's on-line database.

About First Atlantic Nickel Corp.

First Atlantic is a Canadian mineral exploration company developing the 100-per-cent-owned Atlantic nickel project, a large-scale nickel deposit strategically located near existing infrastructure in Newfoundland, Canada. The project's nickel occurs as awaruite, a natural nickel-iron alloy containing approximately 77 per cent nickel with no sulphur and no sulphides. Awaruite's properties allow for smelter-free magnetic separation and concentration, which could strengthen North America's critical mineral supply chain by reducing foreign dependence on nickel smelting. This aligns with new U.S. electric vehicle IRA requirements, which stipulate that beginning in 2025, an eligible clean vehicle may not contain any critical minerals processed by a FEOC (foreign entities of concern).

First Atlantic aims to be a key input of a secure and resilient North American critical mineral supply chain for the stainless steel and electric vehicle industries in the U.S. and Canada. The company is positioned to meet the growing demand for responsibly sourced nickel that complies with the critical mineral requirements for eligible clean vehicles under the U.S. IRA. With its commitment to responsible practices and experienced team, First Atlantic is poised to contribute significantly to the nickel industry's future, supporting the transition to a cleaner energy landscape. This mission gained importance when the United States added nickel to its critical mineral list in 2022, recognizing it as a non-fuel mineral essential to economic and national security with a supply chain vulnerable to disruption.

We seek Safe Harbor.