Mr. Ian Fraser reports

INITIAL BHEM SURVEYS IDENTIFY NEW AND DEVELOPING DRILL TARGETS AT FATHOM'S GOCHAGER LAKE PROJECT

Fathom Nickel Inc. has provided an update on the current exploration campaign at its Gochager Lake project.

Fathom's inaugural exploration campaign, completed in February, 2023, consisted of two drill holes (GL23-003 and GL23-004 -- see press release April 12, 2023) designed to confirm the continuity of mineralization outlined from historical drilling on the property. This campaign also marked the very first time that time domain borehole (BHEM) electromagnetics had been trialed on the property and the results were very successful in defining the high conductance nature of the nickel-bearing sulphides associated with this deposit.

The historic Gochager Lake deposit geometry, which is largely based on vertical drill holes, appears to be steeply dipping and the original BHEM surveys were designed with this geometry in mind. However, the complexity of response patterns observed suggested other possible geometries were evident and efforts to further resolve these is now the focus of this summer's exploration campaign. To date, BHEM data have been collected utilizing one of three designed loops; fieldwork on the other two loops continues. Geophysical analysis and interpretation will be continuing throughout the program. An exciting example of preliminary results/interpretation is evidenced by observations from drill hole GL18001.

Highlights:

• Preliminary BHEM highlights include:
  • Off-hole responses building at the end of drill holes GL-89-03, GL18001 and GL23004.
  • Strong off-hole conductors in GL18001 occur directly below and above known mineralization (1.96 per cent Ni/2.7 metres; 126.7 to 129.4 m) occurring in the drill hole.
  • High conductance off-hole response at about 160 m and about 190 m in GL18001.
  • Off-hole conductors in GL18001 occur in areas not previously tested by drilling.

Ian Fraser, chief executive officer and vice-president of exploration, stated: "With this new round of BHEM surveys, our goal was to design a program which would help illuminate targets of multiple orientations and we are very encouraged with the initial results. In particular, drill hole GL18001, which intersected 1.96 per cent Ni over 2.7 m, is associated with a strong in-hole anomaly. Unexpected, and not evident from the first surveys we did here with a different loop in February, are strong off-hole anomalies directly below and above this intersection. These appear to lie in areas of no historical drilling. To date, all high conductance responses we have seen at Gochager are due to [nickel]-bearing sulphides, and seeing untested target areas so early in our exploration campaign highlights the crucial role BHEM surveys will play in our exploration process. More importantly, untested BHEM anomalies show the enormous potential for expansion of high-grade Ni-Co sections within the historic deposit. We look forward to defining additional target areas ahead of our next drilling campaign."

All drill holes probed in February are being resurveyed using enhanced instrumentation and BHEM data are being collected from three individual surface loops. Upon completion of this geophysical program the company expects a much clearer three-dimensional view/model of the geometry of the mineralization encountered in GL23003 and other off-hole anomalies resulting from the BHEM program. This exploration campaign started on June 8, 2023, and is expected to run through the first week of July. The company has a budget in place for an upcoming drill program that will test positive off-hole BHEM responses. The drill program will commence once the BHEM results and data from an in-progress surface EM program has been thoroughly reviewed and interpreted, expected to occur in early August.

Qualified person and data verification

Ian Fraser, PGeo, CEO, VP, exploration, and a director of the company and the qualified person as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of the company.

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, 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, 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.

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