Mr. Adrian Smith reports

FIRST ATLANTIC NICKEL & COBALT RELEASES WHITE PAPER, "ONSHORING THE NICKEL-COBALT SUPPLY CHAIN. WITHOUT A SMELTER," AT CRITICAL MINERALS FOR DEFENCE 2026 IN TORONTO

First Atlantic Nickel & Cobalt Corp. has released its white paper, "Onshoring the Nickel-Cobalt Supply Chain. Without A Smelter," at Critical Minerals for Defence 2026, taking place June 9 to June 10, 2026, at the Marriott Downtown CF Toronto Eaton Centre. The white paper is available now on the company's website. As announced on June 5, 2026, First Atlantic is participating as an official exhibitor at the conference, where it is showcasing drill core and samples of awaruite (Ni3Fe), a naturally occurring magnetic nickel-iron-cobalt alloy (Ni-Fe-Co), from its wholly owned Pipestone XL nickel-cobalt alloy project. The white paper builds on the company's participation at the conference and outlines a mine-to-metal pathway for awaruite, highlighting how its metallic, sulphur-free composition would remove the need for mid-stream smelting and support the production of a high-grade nickel-cobalt concentrate for downstream North American EV battery refining and specialty alloy and stainless-steel production.

The white paper details how awaruite's metallic, sulphur-free composition allows it to be concentrated through magnetic separation and flotation into a high-grade concentrate suitable for downstream refining and stainless-steel production, without conventional smelting, roasting or high-pressure acid leaching. Electron microprobe analysis by SGS Canada Inc. of awaruite grains from the RPM zone reported averages of 77.62 per cent nickel and 1.69 per cent cobalt. The white paper also notes that North America's current mid-stream smelting nickel capacity is constrained, with just two operational pyrometallurgical nickel smelters remaining in operation in Ontario, underscoring the strategic relevance of a smelter-free processing pathway for allied defence and industrial supply chains.

Awaruite -- a smelter-free nickel-cobalt alloy (Ni3Fe)

Awaruite is a naturally occurring, sulphur-free nickel-iron-cobalt alloy with nickel content of approximately 77 per cent. Because it already exists in a metallic state, awaruite can be processed into a high-grade concentrate of approximately 60 per cent nickel through magnetic separation and flotation, without smelting, roasting or high-pressure acid leaching. This concentrate can be sent directly for downstream battery chemical refining or for the manufacture of specialty alloys and stainless steel.

As stated in the August, 2025, report "From Rocks to Power: Strategies to Unlock Canada's Critical Minerals for Global Leadership in Energy Storage, EVs, & Beyond" from the Battery Metals Association of Canada: "Awaruite is not a sulphide nor an oxide nickel ore but a high-content native nickel-iron ore. Simple beneficiation processes after mining could provide 60-per-cent-nickel concentrate, ready for leaching for battery cathode purposes and would yield MHP [mixed hydroxide precipitate] as a byproduct. This process would bypass pyrometallurgy or early hydrometallurgy stages and be among the lowest carbon-intensive nickel production sites in the global nickel market." The U.S. Geological Survey highlighted awaruite's potential in its Mineral Commodity Summaries 2012, 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."

The absence of sulphur reduces the risk of acid mine drainage and certain permitting challenges commonly associated with sulphide mineralization, positioning awaruite to supply North American industries, including stainless steel, electric vehicles, aerospace and defence.

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 several German exchanges, including Frankfurt and Tradegate, under the symbol P21.

About First Atlantic Nickel & Cobalt Corp.

First Atlantic Nickel & Cobalt is a critical mineral exploration company in Newfoundland and Labrador developing the Pipestone XL nickel-cobalt alloy project. The project spans the entire 30-kilometre Pipestone ophiolite complex, where multiple zones, including RPM, Alloy Max, Super Gulp, Atlantic Lake and Chrome Pond, contain awaruite (Ni3Fe), a naturally occurring magnetic nickel-iron-cobalt alloy of approximately 77 per cent nickel with no sulphur and no sulphides, along with secondary chromium mineralization. Awaruite's sulphur-free composition removes acid mine drainage (AMD) risks, while its unique magnetic properties enable processing through magnetic separation, eliminating the electricity requirements, emissions and environmental impacts of conventional smelting, roasting or high-pressure acid leaching while reducing dependence on overseas nickel processing infrastructure.

The U.S. Geological Survey recognized awaruite's strategic importance in its 2012 annual report on nickel, noting that these deposits may help alleviate prolonged nickel concentrate shortages since the natural alloy is much easier to concentrate than typical nickel sulphides. The Pipestone XL nickel-cobalt alloy project is located near existing infrastructure with year-round road access and proximity to hydroelectric power. These features provide favourable logistics for exploration and future development, strengthening First Atlantic's role to establish a secure and reliable source of North American nickel production for the stainless steel, electric vehicle, aerospace and defence industries. 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.

Qualified person

Adrian Smith, PGeo, a director and the chief executive officer of the company, 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.

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