Mr. Adrian Smith reports

FIRST ATLANTIC NICKEL SELECTS LONG-TERM DRILL CORE PROCESSING & STORAGE FACILITY IN GRAND FALLS-WINDSOR, NEWFOUNDLAND

First Atlantic Nickel Corp. has selected a new, secure, drill core processing and storage facility in Grand Falls-Windsor, Nfld., marking a significant step in the company's operational expansion.

The new facility will replace the current temporary tent structure, offering a long-term, year-round solution for drill core processing and storage. This move will support continuing activities related to phase 1 drilling at the Atlantic nickel project, where cores are cut, logged, photographed, and prepared for assays and metallurgical testing. Updates are expected soon as phase 1 drill cores continue to be processed.

Located within 50 kilometres of the Atlantic Lake property, the new facility is currently receiving drill cores from phase 1 drilling. This strategic location supports current operations while offering scalability for future district-scale, multizone drill programs along the 30-kilometre nickel trend.

Phase 2 drilling permit applications have been submitted in Newfoundland and Labrador, a jurisdiction renowned for its support of the mining sector and streamlined permitting process, where previous permits were granted within approximately a one-month period. The new facility is designed to facilitate a seamless and efficient transition into the planned expanded phase 2 drill program, enhancing the operational capacity and readiness of the Atlantic nickel project.

This facility will serve multiple purposes:

• Drill core processing and storage -- dedicated facility for the processing and storage of drill core from continuing and future drilling;
• Operational hub -- it will act as a corporate base for Newfoundland operations, hosting strategic meetings and providing an office presence where technical staff will be based;
• Equipment storage -- the facility will house necessary equipment for on-site testing, including XRF (X-ray fluorescence) machines, core saws, cameras and microscopes;
• Metallurgical testing -- it will also store rock test material for future metallurgical test work.

The drill core from the Atlantic nickel project will be processed at this location, ensuring high-quality data collection and analysis.

Adrian Smith, PGeo, chief executive officer of First Atlantic, commented: "This facility is a pivotal part of our strategy to expand and enhance our exploration program. It supports our commitment to exploring and developing the potential of our properties in Newfoundland, leveraging the region's supportive mining environment."

Overview of continuing RPM discovery

The RPM zone, a high-priority target within the large 30-kilometre ultramafic body of the Pipestone ophiolite complex, was discovered by First Atlantic geologists Dr. Ron Britten, Pearce Bradley and Michael Piller during the 2024 exploration program. The zone's heavily weathered outcrop, visible in satellite imagery, caught the geologists' attention during a district-scale sampling program. Float samples from the area revealed significant large-grain awaruite mineralization. The discovery area spans approximately 2.6 kilometres in length and 400 to 600 metres in width and is characterized by a strong magnetic anomaly. Located 25 km south of historic drilling at Atlantic Lake and 10 kilometres south of the Super Gulp discovery, the RPM zone represents a key development in the exploration program.

The first drill hole at the RPM zone, reaching a depth of 394 metres, intersected visible disseminated nickel-iron alloy (awaruite) mineralization from surface to bottom. Notably, the awaruite grains, visible to the naked eye, increased in size with depth, often exceeding 25 microns, with many grains surpassing 500 microns -- well above the 10-micron threshold for effective magnetic separation. XRF analysis confirmed low levels of sulphur, nickel and chromium throughout the drill hole. Samples are now being prepared for assay, with results anticipated in the coming months.

The significance of the RPM zone lies in its impressive mineralization and potential for cost-effective mining. Drilling revealed heavily fractured, broken and sheared serpentinized nickel host rock, which may enable lower-cost initial mining methods, such as ripping, rather than conventional drilling and blasting. With mineralization open at depth, continuing drilling aims to further define and expand the mineralized area. The coarse awaruite grains, visible to the naked eye, increase in size downhole, starting at up to 200 microns and exceeding 500 microns in coarser zones. Visible disseminated awaruite was observed from surface to 394 metres, with the drill hole ending in zones of coarser-grained mineralization. This groundbreaking discovery, a testament to the expertise of the geological team, has solidified the RPM zone as a top priority for exploration and assessment in First Atlantic's continuing program.

Awaruite (nickel-iron alloy -- Ni2Fe and Ni3Fe)

Awaruite, a naturally occurring, sulphur-free nickel-iron alloy composed of Ni3Fe or Ni2Fe with approximately approximately 75 per cent nickel content, 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 60-per-cent nickel content through magnetic processing and simple flotation without the need for smelting, roasting or high-pressure acid leaching. 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 sulphide of nickel." Awaruite's unique properties enable cleaner and safer processing compared with conventional sulphide and laterite nickel sources, which often involve smelting, roasting 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 and lack of sulphur, 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 control 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 is a cleaner source of nickel that reduces dependence on foreign processing controlled by China, leading to a more secure and reliable supply for North America's stainless steel and electric vehicle industries.

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.

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.

About First Atlantic Nickel Corp.

First Atlantic Nickel 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; this could strengthen North America's critical mineral supply chain by reducing foreign dependence on nickel smelting. This aligns with new U.S. IRA electric vehicle requirements, which stipulate that, beginning in 2025, an eligible clean vehicle may not contain any critical minerals processed by a foreign entity of concern.

First Atlantic aims to be a key input of a secure and reliable North American critical mineral 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 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.