Mr. Ian Fraser reports

FATHOM NICKEL ANNOUNCES UPSIZING OF PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT TO $3 MILLION

Based on very strong demand for its previously announced best efforts non-brokered private placement financing, Fathom Nickel Inc. has upsized the gross proceeds to up to $3-million. All other terms of the upsized offering remain unchanged: The upsized 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.

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 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 upsized 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 the province of 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 upsized 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.

"We are very pleased with the response from current and prospective investors of Fathom to the announcement of the now upsized offering. The additional proceeds from the upsized offering will allow us to expand the extent of the field exploration programs at both the Gochager Lake and Albert Lake projects," stated Doug Porter, president and chief financial officer. "Planning is currently under way to commence field geophysics in early June. A more detailed exploration plan and time frame will be announced once finalized in the coming weeks."

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 upsized 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 upsized offering.

The sale of HD units and FT units is expected to close on or about May 19, 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 upsized offering is subject to customary closing conditions, including the approval of the securities regulatory authorities and the Canadian Securities Exchange.

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, an over 90,000-hectare project that was host to the historic and past-producing Rottenstone deposit (produced high-grade nickel, copper plus platinum group elements, 1965 to 1969), and 2) the Gochager Lake project, an over 19,000-hectare project host to a historic, National Instrument 43-101 non-compliant open-pit resource; the Gochager Lake deposit (of 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 over 1 per cent Ni (Mal Lake last drilled in 1967), and the Borys Lake zinc-copper-lead-silver occurrence.

We seek Safe Harbor.