Mr. Ian Fraser reports

FATHOM NICKEL ANNOUNCES $2 MILLION PRIVATE PLACEMENT INCLUDING STRATEGIC PARTICIPATION BY CRESCAT CAPITAL LLC

Fathom Nickel Inc. intends to complete a best-efforts non-brokered private placement financing for aggregate gross proceeds of up to $2-million. The offering will consist of any combination of: (i) charity flow-through units at 19 cents per charity FT unit; (ii) flow-through units at 15.5 cents per FT unit; and (iii) hard-dollar units at 13.5 cents per HD unit of the company. Crescat Capital LLC has agreed to make a strategic investment for up to 25 per cent of the offering.

"High-grade nickel sulphide discoveries have been exceedingly scarce in North American lately," commented Dr. Quinton Hennigh, geologic and technical director of Crescat, a strategic investor in Fathom Nickel. "Fathom's recent high-grade drill intercepts at Gochager Lake might prove to break this drought. The 18.1-metre intercept of 2.43 per cent Ni [nickel], 0.51 per cent Cu [copper] and 0.18 per cent Co [cobalt], within 58.2 m of 1.49 per cent Ni, 0.38 per cent Cu and 0.11 per cent Co in hole GL23003, resembles grades and widths of drill intercepts encountered at the Nova-Bollinger discovery in Western Australia a few years ago. An off-hole EM [electromagnetic] anomaly seen outboard from this remarkable intercept appears to be exceptionally strong, suggesting the potential presence of a major sulphide body nearby. We are very anxious to see Fathom undertake follow-up drilling of this anomaly as soon as possible."

Crescat is expected to own or control approximately 19 per cent of the common shares of Fathom on a partially diluted basis upon completion of the offering, assuming the offering is completed in full.

Each charity FT unit shall consist of one charity flow-through common share and one transferable common share purchase warrant that shall be exercisable into one common share (charity warrant share) for a period of 24 months from issuance at an exercise price of 20 cents.

Each FT unit shall consist of one flow-through common share and one-half of a transferable common share purchase warrant, with one whole unit warrant exercisable into a warrant share for 24 months from issuance at an exercise price of 23 cents.

Each HD unit shall consist of one common share and one warrant.

The offering will be offered by way of a non-brokered best-efforts private placement financing offering to accredited investors, or pursuant to the other available prospectus exemptions under National Instrument 45-106 -- Prospectus Exemptions in all provinces of Canada, except Quebec, and any other jurisdictions, subject to the receipt of necessary regulatory approvals.

The aggregate gross proceeds raised from the charity FT units and FT units will be used before Dec. 31, 2024, for general exploration expenditures which will constitute Canadian exploration expenses (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)), that will qualify as flow-through critical mineral mining expenditures within the meaning of the Tax Act. The net proceeds of the offering from the HD units will be used for exploration and development of the company's mineral projects, and for working capital and general corporate purposes.

"The proceeds from this financing will put Fathom in a great position to commence a field exploration program at the Gochager Lake project in June, with a focus of following up on the very impressive results from our recent drill program," stated Doug Porter, president and chief financial officer. "We are particularly pleased that Crescat has agreed to participate in the offering in such a significant manner. Crescat has been a fantastic supporter of Fathom since their initial investment in our IPO [initial public offering] financing. Additionally, the experience and technical insights of Dr. Hennigh have proven invaluable to Ian and our geological team. We look forward to continuing to strengthen our relationship with Crescat as we advance exploration at our Gochager Lake and Albert Lake projects."

It is expected that the company will pay finders a cash commission, on a yet-to-be-determined percentage, based on the gross proceeds of the offering. In addition, it is expected that the company will issue warrants to finders, subject to the number of HD units, charity FT units and FT units sold pursuant to the offering.

The sale of HD units and FT units are expected to close on or about May 15, 2023, or such other date as the company may determine. The sale of charity FT units is expected to close on or about June 7, 2023, or such other date as the company may determine.

The offering is subject to customary closing conditions, including the approval of the securities regulatory authorities and the Canadian Securities Exchange.

About Crescat Capital LLC

Crescat is a global macro asset management firm headquartered in Denver, Colo. Crescat's mission is to grow and protect wealth over the long term by deploying tactical investment themes based on proprietary, value-driven equity and macro models. Crescat's goal is industry-leading absolute and risk-adjusted returns over complete business cycles with low correlation to common benchmarks. The company's investment process involves a mix of asset classes and strategies to assist with each client's unique needs and objectives, and includes global macro, long/short, large cap and precious metals funds.

Dr. Hennigh is Crescat's geologic and technical director. Dr. Hennigh is a globally renowned exploration geologist with 30-plus years of precious metals mining experience. Dr. Hennigh began his career in gold exploration after obtaining his PhD in geology/geochemistry from the Colorado School of Mines. Early in his career, he worked for major gold mining companies, including Homestake Mining (now Barrick Gold Corp.), Newcrest Mining and Newmont Corp. Later, Dr. Hennigh founded Novo Resources Corp., acting as its chief executive officer and currently serving as chairman. He has played a key role in major global discoveries, such as Novo's Pilbara assets in Western Australia, First Mining Gold's Springpole gold deposit in Ontario, Kirkland Lake Gold's Fosterville gold mine in Australia, the Rattlesnake Hills gold deposit in Wyoming and Lion One's Tuvatu gold project in Fiji, among many others.

About Fathom Nickel Inc.

Fathom is an exploration company that is targeting magmatic nickel sulphide discoveries to support the rapidly growing global electric vehicle market.

The company now has a portfolio of two high-quality exploration projects located in the prolific Trans Hudson corridor in Saskatchewan: (1) the Albert Lake project, a 90,000-plus-hectare project that was host to the historic and past-producing Rottenstone deposit (produced high-grade Ni-Cu plus PGE (platinum group elements, 1965 to 1969); and (2) the Gochager Lake project, a 19,000-plus-hectare project host to a historic, non-National Instrument 43-101 compliant open-pit resource -- the Gochager Lake deposit (4.3 million tons at 0.295 per cent Ni and 0.081 per cent Cu, defined 1967 to 1970), an analogous drill-tested nickel occurrence of drill intersections greater than 1 per cent Ni (Mal Lake, last drilled in 1967), and the Borys Lake zinc-copper-lead-plus-silver occurrence.

We seek Safe Harbor.