Mr. Adrian Smith reports

FIRST ATLANTIC NICKEL RECEIVES JUNIOR EXPLORATION ASSISTANCE GRANT FROM PROVINCE OF NEWFOUNDLAND AND LABRADOR

First Atlantic Nickel Corp. has expressed its gratitude to the Province of Newfoundland and Labrador for awarding the company the maximum grant of $150,000 through the junior exploration assistance (JEA) program. The funding will support critical mineral exploration at the company's Atlantic nickel project, a 100-per-cent-owned, district-scale nickel project strategically located in central Newfoundland, with access to infrastructure, including roads and clean hydro-grid power. The project spans the entire 30-kilometre Pipestone ophiolite complex, which hosts serpentinized ultramafic rocks enriched in nickel, chromium and cobalt. The primary nickel mineral is awaruite, a sulphur-free, naturally occurring nickel-iron alloy (Ni3Fe) composed of approximately 75 per cent nickel.

Phase 1 drilling at the project has revealed wide zones of visible awaruite nickel mineralization, with assays confirming nickel grades consistently distributed across multiple drill holes. Initial Davis tube recovery (DTR) metallurgical testing indicates that magnetic separation is effective in separating and concentrating awaruite nickel. Unlike conventional nickel extraction methods, awaruite can be processed without smelting or roasting, offering a low-carbon, environmentally superior alternative with domestic processing capabilities and non-acidic tailings.

The environmental advantage of awaruite lies in its sulphur-free composition, which eliminates the need for energy-intensive smelting or roasting processes typically required to remove sulphur compounds from conventional nickel ores. Because secondary processing is not required, awaruite nickel offers high payability, avoiding the treatment, refining and shipping charges usually associated with traditional processes such as smelting or roasting. The use of magnetic separation allows for the efficient handling of large rock volumes, reducing initial rock volume by approximately 90 per cent, producing a high-grade concentrate that can be further enhanced through subsequent flotation stages.

The company is preparing to launch its fully financed and permitted phase 2 drill program, which will commence shortly. This next phase will focus on large-scale stepout drilling to expand the RPM zone discovery made during the successful phase 1 program. In the coming weeks, as phase 2 progresses, the company expects to receive drill assay results from hole AN-24-05 and DTR metallurgical results from holes AN-24-04 and AN-24-05 (RPM drill holes 4 and 5).

The Fraser Institute has consistently ranked Newfoundland and Labrador among the top global jurisdictions for mining investment. As noted in a recent report: "According to the provincial government, the province is home to 23 of the 31 critical minerals in Canada, in addition to base metals. In 2022, 11 mines across Newfoundland and Labrador produced approximately $5.4-billion in mineral shipments and employed more than 8,000 people. So mining is already a major industry, but investors are clearly bullish on the province's potential. In fact, according to the latest survey of senior executives in the mining industry (published by the Fraser Institute), Newfoundland and Labrador is the fourth-most attractive jurisdiction for mining investment (out of 62 jurisdictions) trailing only Nevada, Western Australia and Saskatchewan."

Junior exploration assistance program

The JEA program is designed to expand the mineral inventory of Newfoundland and Labrador by supporting the discovery of new mineral districts, occurrences, prospects and deposits. It also aims to advance existing discoveries toward National Instrument 43-101 compliant mineral resources, strengthening the province's position as a world-class mineral exploration destination. The JEA program is funded through a combination of: $1.3-million in provincial grant funds, $1.3-million from critical mineral assistance (CMA) and $1.3-million in provincial critical mineral assistance (PCMA). Funding is provided in the form of rebates for eligible exploration activities. Companies conducting critical mineral exploration may qualify for larger rebates through the CMA and PCMA streams. Subject to budget approval for the 2025/2026 fiscal year, the JEA program will offer rebates covering 40 per cent to 75 per cent of approved exploration costs, up to $150,000 per project on the island of Newfoundland.

Awaruite (nickel-iron alloy Ni2Fe, 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 safe 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 electric vehicle 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.

Quote from USGS on Awaruite deposits in Canada

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, 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 project 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 a foreign entity of concern.

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 an 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 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.