Mr. Adrian Smith reports

FIRST ATLANTIC DRILLS NEW DISCOVERY AT RPM ZONE WITH 394 METERS OF VISUALLY DISSEMINATED AWARUITE, 10 KM SOUTH OF SUPER GULP ZONE

First Atlantic Nickel Corp. has provided an update on continuing drilling at its 100-per-cent-owned, multizone, district-scale Atlantic nickel project in central Newfoundland, Canada. Drilling in the RPM zone has resulted in a new discovery of disseminated, visible, sulphur-free nickel-iron alloy (awaruite) throughout a 394-metre (m) hole located 10 kilometres (km) south of the Super Gulp zone and 25 km south of historic drilling at Atlantic Lake. This drill hole follows the recent discoveries of multiple new zones containing visible awaruite across the 30 km nickel trend of the project during the summer sampling program.

Highlights:

• First discovery hole at RPM zone: The first hole at RPM was drilled to 394 metres, intersecting visible, disseminated nickel-iron alloy (awaruite) mineralization from the surface throughout the entire drill hole.
• Major stepout drilling: The RPM zone discovery is located 25 km south of historic drilling at Atlantic Lake and 10 km south of Super Gulp discovery.
• Large awaruite grain size: Large disseminated awaruite grains, visible to the naked eye, increase in size downhole, frequently exceeding 25 microns. Numerous 500-plus-micron-sized grains were observed throughout the drill hole, well above the 10-micron threshold for effective magnetic separation.
• Confirmed nickel and chromium presence: An XRF (X-ray fluorescent) analyzer confirmed the presence of nickel and chromium throughout the drill hole. Samples are now being prepared for assays, with results expected in the coming months.
• Continuing drilling at RPM target: The drill program continues to test the high-priority RPM target, with continuing drilling to expand the size and definition of the mineralized area.
• Potential for low-cost mining: The drilling has revealed heavily fractured, broken and sheared serpentinized nickel host rock, which may allow for lower-cost initial mining methods like ripping instead of conventional drilling and blasting.
• Smelter-free nickel: Awaruite (Ni3Fe), a sulphur-free nickel-iron alloy, allows for magnetic processing without smelting, potentially creating a resilient North American nickel supply chain.

RPM zone drill hole 001 highlights:

• Visible disseminated awaruite: Visible disseminated awaruite was observed from the surface to 394 metres, with the hole ending in zones of coarser-grained mineralization.
• Increasing grain size with depth: Awaruite grain sizes increase with depth, starting at up to 200 microns and reaching over 500 microns in coarser zones.
• Open at depth: Mineralization remains open at depth, with additional drilling planned to further define and expand the zone.
• Significant discovery: The RPM zone represents a significant discovery within the continuing exploration program, with high priority for further exploration to assess its extent and potential.
• Continuing drilling at RPM target: The drill program continues to test the high-priority RPM target, where the largest visible awaruite grains were discovered during the summer, 2024, surface sampling program. Drilling is continuing at the RPM zone to expand the size and better define the footprint of the mineralized area.

Drill hole 001 (AN-24-02) at the RPM zone was drilled to the east at a minus-60-degree dip, penetrating less than 10 metres of overburden before intersecting heavily serpentinized ultramafic rock. Visible disseminated awaruite was observed from the surface to 394 metres, where the hole ended in zones of coarse-grained mineralization, suggesting the potential for significant awaruite accumulations. Throughout the core, awaruite grain sizes were noted to increase with depth, starting with grains up to 200 microns and reaching over 500 microns in coarser zones. The rock matrix ranged from dark to pale brown to green, exhibiting a brecciated-style texture due to numerous fractures and veins of serpentine and magnetite. This mineralization remains open at depth, prompting the company to plan additional drilling to further define and expand the zone.

The RPM zone itself was a significant discovery made in the summer of 2024 by geologists Dr. Ron Britten, Pearce Bradley and Michael Piller during regional exploration of the ophiolite belt. Their work identified high-priority areas through subcrop and float samples near the end of a 30 km high-magnetic ophiolite sequence. Surface sampling in 2024 detected mineralized ultramafic boulders with abundant awaruite, leading to discovery drilling that confirmed the mineralization in the core. Furthermore, an increase in chromium was observed, with chromite appearing as a lustrous metallic black mineral within the rock.

The successful identification of coarse-grained awaruite at the surface and, in drilling, highlights the significance of the RPM zone. This area will be prioritized for further exploration to assess its extent and potential, as it represents a significant discovery within the continuing exploration program.

Adrian Smith, chief executive officer, said:

"We are thrilled with the continued success at the Atlantic nickel project, as we discover coarse-grained nickel alloy in the first-ever drill hole at the RPM zone, located approximately 10 km south of the Super Gulp area. This discovery extends known mineralization 25 km from the Atlantic Lake area, with visible awaruite disseminated within the ultramafic rock unit, which is part of the large-scale ophiolite located on the property.

"I want to congratulate the project geologists and field team, with the aid of Dr. Ron Britten, PhD, for their early success leading to this discovery, finding significant visible mineralization in the drilling. Our strategy continues to focus on identifying and establishing areas with large volumes of nickel alloy, with the goal to uncover a district-scale nickel project.

"The 2024 exploration program has yielded remarkable results, not only with this major discovery but also with similar findings from other areas within the 30 km ophiolite trend. These findings indicate the presence of multiple high-potential zones, suggesting the possibility of a larger nickel district. We look forward to providing additional updates as our exploration progresses, with a focus on expanding the scale of our stepout drilling to further delineate the extent of this exciting new discovery."

Awaruite (nickel-iron alloy, Ni2Fe, Ni3Fe)

Awaruite, a naturally occurring sulphur-free nickel-iron alloy composed of Ni3Fe or Ni2Fe with nickel content of approximately 75 per cent, offers a proven and environmentally safer solution to enhance the resilience and security of North America's domestic critical minerals supply chain. Unlike conventional nickel sources, awaruite can be processed into high-grade concentrates exceeding nickel content of 60 per cent through magnetic processing without the need for smelting. Beginning in 2025, the U.S. Inflation Reduction Act's (IRA) $7,500 electric vehicle (EV) tax credit mandates that eligible clean vehicles must not contain any critical minerals processed by foreign entities of concern (FEOCs). These entities include Russia and China, which currently dominate the global nickel smelting industry. Awaruite's smelter-free processing approach could potentially help North American manufacturers meet the IRA's stringent critical mineral requirements and reduce dependence on FEOCs for nickel processing.

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 sulfide 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 that can release toxic sulphur dioxide, generate hazardous waste and lead to acid mine drainage. Awaruite's simpler processing, facilitated by its amenability to magnetic processing, eliminates these harmful methods, reducing greenhouse gas emissions and risks associated with toxic chemical release, addressing concerns about the large carbon footprint and toxic emissions linked to nickel refining.

The development of awaruite resources is crucial, given China's dominance in the global nickel market. Chinese companies refine and smelt 68 per cent to 80 per cent of the world's nickel and control an estimated 84 per cent of Indonesia's nickel output, the largest worldwide supply. Awaruite offers an environmentally safer, more sustainable and domestically processable nickel source to meet the growing demand in stainless steel and electric vehicles while reducing reliance on foreign refining and smelting dominated by China. By developing awaruite resources, North America can strengthen the resilience and security of its critical nickel supply chain.

Corporate update

The company is also pleased to announce that it has engaged the services of Independent Trading Group (ITG) Inc. (ITG) to provide market-making services in accordance with the policies of the TSX Venture Exchange. Pursuant to the engagement, ITG will trade common shares of the company on the TSX-V and all other trading venues with the objective of maintaining a reasonable market and improving the liquidity of the company's common shares.

Under the agreement, ITG will receive compensation of $5,000 per month, plus taxes, payable monthly in advance. The agreement is for an initial term of one month and will renew for additional one-month terms unless terminated. The agreement may be terminated by either party with 30 days of notice.

There are no performance factors contained in the agreement and ITG will not receive shares or options of the company as compensation. ITG and the company are unrelated and unaffiliated entities, and, at the time of the agreement, neither ITG nor its principals held an interest, directly or indirectly, in the securities of the company. ITG is a member of the Canadian Investment Regulatory Organization (CIRO), and can access all Canadian stock exchanges and alternative trading systems. The capital and securities required for any trade undertaken by ITG as principal will be provided by ITG.

ITG is a Toronto-based IIROC (Investment Industry Regulatory Organization of Canada) dealer-member that specializes in market-making, liquidity provision, agency execution, ultralow-latency connectivity and bespoke algorithmic trading solutions. Established in 1992, with a focus on market structure, execution and trading, ITG has leveraged its own proprietary technology to deliver high-quality liquidity provision and execution services to a broad array of public issuers and institutional investors.

Newfoundland government junior exploration assistance (JEA) program

First Atlantic would like to thank the government of Newfoundland and Labrador for financial support through the JEA program for exploration activities at the Atlantic nickel project. The company anticipates providing further updates on its continuing programs shortly.

Investor information

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

Disclosure

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 (PEGNL), 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 historical 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 75 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 minerals supply chain by reducing foreign dependence on nickel smelting. This aligns with new U.S. electric vehicle U.S. IRA requirements, which stipulate that beginning in 2025, an eligible clean vehicle may not contain any critical minerals processed by an FEOC.

First Atlantic aims to be a key input of a secure and reliable North American critical minerals supply chain for the stainless steel and electric vehicle industries in the United States 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 future of the nickel industry, supporting the transition to a cleaner energy landscape. This mission gained importance when the U.S. added nickel to its critical minerals 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.