Mr. Doug Porter reports

FATHOM NICKEL ANNOUNCES THE CLOSING OF THE FIRST TRANCHE OF UPSIZED PRIVATE PLACEMENT

Fathom Nickel Inc. has closed the first tranche of its upsized non-brokered offering of flow-through units and non-flow-though units, previously announced on May 8, 2023. Pursuant to the upsized offering the company issued 5,266,000 flow-through common units at a price per FT unit of 15.5 cents for gross proceeds of $816,230, and 4,742,000 non-flow-through units at a price per NFT unit of 13.5 cents for gross proceeds of $640,170. Combined gross proceeds of the upsized offering were $1,456,400. The second tranche of the upsized offering, comprising $1.5-million charity flow-through units, is expected to close on or about June 7.

Each NFT unit consists of one common share (a hard-dollar 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 consists 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.

The combined 10,008,000 hard-dollar and FT shares issued were issued in accordance with the accredited investor exemption under National Instrument 45-106 Prospectus Exemptions and are subject to a resale restriction of four months and one day from the date of distribution.

The gross proceeds of the flow-through portion of the upsized offering will be used by the company to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada) related to the company's Albert Lake project and the Gochager Lake project, which are located in Saskatchewan, Canada, on or before Dec. 31, 2024. All qualifying expenditures will be renounced in favour of the subscribers effective Dec. 31, 2023. The net proceeds of the upsized offering from the NFT units will be used for exploration and development of the company's mineral projects and for working capital and general corporate purposes.

As consideration for services in connection with the upsized offering, the company has paid to certain qualified finders a cash commission of $63,945 and 439,800 broker warrants. Each broker warrant will entitle the holder thereof to acquire one common share of the company at the offering price for a period of 36 months from the closing date.

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 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 nickel-copper-PGE (platinum group elements), 1965 to 1969), and 2) the Gochager Lake project, a 19,560-hectare project that is host to a historic, open-pittable resource consisting of 4.3 million tons at 0.295 per cent Ni and 0.081 per cent Cu.

We seek Safe Harbor.