Mr. Adrian Smith reports

FIRST ATLANTIC NICKEL EXPANDS RPM ZONE TO 750 METERS IN WIDTH WITH SECOND PHASE 2 DRILL HOLE: AN-25-07 INTERSECTS 495 METERS OF VISIBLE AWARUITE MINERALIZATION

First Atlantic Nickel Corp. has significantly expanded visible awaruite nickel-alloy mineralization at the RPM zone, part of its 100-per-cent-owned, district-scale, 30-kilometre-long Atlantic nickel project in Newfoundland. RPM drill hole AN-25-07, the second hole of the phase 2 program, intersected 495 metres of visibly disseminated awaruite and has expanded the mineralized section located 400 metres north of the RPM discovery holes up to 750 metres in width. This represents an approximately 50-per-cent increase from the 500-metre width established in phase 1, confirming the robust lateral extent of awaruite mineralization at RPM. With holes AN-25-08 and AN-25-09 now completed on Line S3, phase 2 drilling has tested 800 metres of north-south strike length and continues to demonstrate the scale potential of the RPM zone as the company advances toward defining over one kilometre of continuous awaruite mineralization. Concurrent with drilling, phase 2 prospecting across the 30-kilometre Pipestone ophiolite complex has collected numerous surface rock samples containing visible awaruite for assay and Davis tube metallurgical testing. Additional updates on the phase 2 program are anticipated within the coming weeks.

The sulphur-free nature of awaruite (Ni3Fe), a naturally occurring nickel-iron-cobalt alloy already in metallic form, eliminates the need for secondary processes such as smelting, roasting or acid leaching that are typical of sulphide or laterite nickel ores. Unlike sulphides, which are not natural alloys, awaruite avoids the challenge of sourcing smelter capacity -- a bottleneck in North America's nickel supply chain. With an average nickel grade of approximately 76 per cent, awaruite significantly exceeds the approximately 25-per-cent nickel grade characteristic of pentlandite. Awaruite's strong magnetic properties enable concentration through magnetic separation, as demonstrated by Davis tube recovery (DTR) testing at First Atlantic's RPM zone drill core. Awaruite eliminates the electricity requirements, emissions and environmental impacts associated with conventional smelting, roasting or acid-leaching processes of common nickel minerals. Moreover, awaruite's sulphur-free composition removes the risks of acid mine drainage (AMD) and related permitting challenges commonly posed by sulphide minerals. As noted by the United States Geological Survey (USGS) in 2012: "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."

Highlights:

• AN-25-07 expands RPM zone to 750 metres in width: The second hole of the phase 2 drill program confirms a drilled width up to 750 metres wide of mineralization, with visibly disseminated awaruite grains observed throughout a 495-metre intersection.
• 400-metre stepout success: AN-25-07 was drilled on Line S2, a 400-metre stepout north from Line S1, demonstrating strong continuity of awaruite mineralization along strike.
• RPM zone now measures 750 metres wide by 400 metres long: Every hole drilled at the RPM zone has intersected large-grain visibly disseminated awaruite, with mineralization now traced to depths of up to 495 metres downhole.
• Phase 2 expansion targeting one-kilometre-plus strike length: Holes AN-25-08 and AN-25-09, drilled on Line S3, have extended the tested north-south strike length to 800 metres. The phase 2 program is designed to test beyond one kilometre.
• Consistent metallurgical performance: To date, drilling at the RPM zone has returned magnetically recoverable nickel averaging 1.38 per cent in magnetic concentrate, with a mass pull of 9.08 per cent. This results in an average DTR nickel grade of 0.12 per cent and an overall recovery of 51.59 per cent from an average starting grade of 0.24 per cent over 1,763 metres of continuously sampled core.
• Multiple updates expected: The company anticipates providing additional updates on phase 2 drilling and other project developments in the coming weeks.

"We congratulate our geological team on the breakthrough discovery at the RPM zone," stated Adrian Smith, chief executive officer of First Atlantic Nickel. "Prior operators conducting exploration at the Pipestone ophiolite complex missed the awaruite mineralization in the southern parts of the property, where our team's systematic approach and unique experience recognized both the geological controls and the distinction between surface expressions and underlying mineralization. Thanks to Newfoundland's streamlined permitting process, we have advanced from discovery to phase 2 drilling significantly faster than would have been possible in many other jurisdictions. Our geological team's expertise has been instrumental in understanding this 30-kilometre awaruite system -- a rare nickel alloy that offers the potential to provide a nickel source while eliminating the energy consumption, environmental impacts and capacity constraints associated with conventional smelting, roasting and acid-leaching processes of nickel sulphide or laterite ores."

AN-25-07 drill hole details

Drill hole AN-25-07 was collared on Line S2, approximately 400 metres north of the phase 1 discovery holes on Line S1. The hole successfully intersected 495 metres of serpentinized peridotite hosting visibly disseminated awaruite (nickel-iron alloy) mineralization. Microscope analysis and geological logging confirmed the presence of awaruite grains throughout the intersection, with grain sizes and distribution patterns visually consistent with those observed in previous RPM drilling. The hole ended in mineralization, suggesting potential for additional extensions farther to the west and to depth.

The systematic placement of AN-25-07 on Section Line S2 was designed to test the northern and western continuity of the mineralized system identified in phase 1. The successful intersection not only confirms this continuity but significantly expands the drilled width of the mineralized zone to more than 750 metres, an increase of approximately 50 per cent relative to the 500-metre width established in phase 1. This substantial width, combined with the consistent presence of visible awaruite, highlights the potential for a significant volume of bulk-tonnage-style nickel mineralization at the RPM zone.

RPM zone overview

The RPM zone has rapidly emerged as a breakthrough discovery within First Atlantic's 30-kilometre Atlantic nickel project. Located 10 kilometres south of the Super Gulp zone and 26 kilometres south of the historic Atlantic Lake zone, RPM represents a significant discovery of awaruite mineralization within this district-scale ultramafic belt. Metallurgical test work, including Davis tube recovery, has averaged 1.38 per cent nickel in magnetic concentrate across all holes completed to date, indicating that the mineralization is amenable to simple magnetic separation processing.

The expanding footprint of the RPM zone now measures approximately 750 metres in width by 400 metres in length and remains open in all directions. The consistency of both visual mineralization and metallurgical recovery suggests the potential for a large-scale, bulk-tonnage awaruite nickel target that could be processed without conventional smelting, aligning with the company's vision of establishing a clean, onshore North American nickel supply chain.

Phase 2 drilling update

Phase 2 drilling is expanding the mineralized footprint of the RPM zone. Hole AN-25-07 has proven 750 metres in width identified with visible awaruite mineralization. With holes AN-25-08 and AN-25-09 now completed, the RPM zone has been drilled more than 800 metres in north-south strike length.

Phase 2 also includes district-scale exploration across the 30-kilometre nickel trend of the Pipestone ophiolite complex, where numerous rock and outcrop samples have been collected at surface. Several of these samples, containing visible awaruite, have been submitted for DTR metallurgical testing and assay.

The company anticipates providing a steady flow of updates over the coming weeks as phase 2 drilling and exploration progress.

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.

Analytical method and quality assurance/quality control

Samples were split in half on site, with one-half remaining in the core box for future reference and the other half securely packaged for laboratory analysis. The QA/QC protocol included the insertion of blanks, duplicates and certified reference material (standards), with one QA/QC sample being inserted every 20 samples to monitor the precision and accuracy of the laboratory results. All analytical results successfully passed QA/QC screening at the laboratory, and all company inserted standards and blanks returned results within acceptable limits.

Samples were submitted to Activation Laboratories Ltd. (Actlabs) in Ancaster, Ont., a laboratory certified and accredited under ISO 17025 operating independently of First Atlantic. Each sample was crushed, with a 250-gram subsample pulverized to 95 per cent -- 200 mesh. A magnetic separate was then generated by running the pulverized subsample through a magnetic separator, which splits the subsample into magnetic and non-magnetic fractions. This involves running a 30-gram split of the pulp through a Davis tube magnetic separator as a slurry using a constant flow rate, a magnetic field strength of 3,500 Gauss and a tube angle of 45 degrees to produce magnetic and non-magnetic fractions.

The magnetic fractions are collected, dried and weighed and the magnetic fraction is fused with a lithium metaborate/tetraborate flux and lithium bromide releasing agent and then analyzed on a wavelength-dispersive XRF (X-ray fluorescence) for multiple elements including nickel, cobalt, iron and chromium. The magnetically recovered nickel grade was then calculated by multiplying the XRF fusion nickel value by the weight of the magnetic fraction and dividing by the total recorded feed weight or magnetic mass pulled from the sample.

True widths are currently unknown. However, the nickel bearing ultramafic ophiolite and peridotite rocks being targeted and sampled in the phase 1 drilling program at the Atlantic nickel project are mapped on surface and in drilling as several hundred metres to over one kilometre wide and approximately 30 kilometres long.

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 (Inflation Reduction Act) requirements, which stipulate that, beginning in 2025, an eligible clean vehicle may not contain any critical minerals processed by an FEOC (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 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 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.