Mr. Ian Fraser reports

FATHOM ANNOUNCES IDENTIFICATION OF NEW ZONES OF CONDUCTIVITY ALONG STRIKE NORTHEAST AND SOUTHWEST OF THE HISTORIC GOCHAGER LAKE DEPOSIT

Fathom Nickel Inc. has provided an update on recently completed surface time-domain electromagnetic (TDEM) and borehole electromagnetic (BHEM) geophysical programs at its Gochager Lake project.

Geophysical surveys completed include a second phase of BHEM surveys (see press release dated June 28, 2023) and a surface TDEM survey over the area of and along strike of the historic Gochager Lake deposit.

TDEM and BHEM highlights include:

• The TDEM survey covered approximately one square kilometre and defined a moderate-strength zone of conductivity directly overtop of the historic Gochager Lake deposit. This conductive trend extends both to the southwest and to the northeast of the deposit area.
• In addition, newly identified zones of conductivity occur to the north, north-northeast and east-southeast of the Gochager Lake deposit area.
• Internal lithostructural interpretation of the 2008 VTEM (versatile time-domain electromagnetic) survey recognizes the Gochager Lake deposit occurs on the axis of a major fold. The hinge zone of the fold occurs immediately to the southwest of the Gochager Lake deposit.
• Directly along strike of the Gochager Lake deposit and on the interpreted fold axis, a moderate-strength, untested VTEM anomaly occurs, and the TDEM survey confirms the untested VTEM anomaly is very Gochager-like. The second phase of BHEM surveys utilized multiple loop configurations to change coupling angles for each hole surveyed and to ultimately better image the conductivity zones recognized in the first phase of BHEM. Both BHEM programs have identified at least four separate conductive zones in the area of Fathom's Q1 2023 drilling, with several lying outside the historical Gochager Lake deposit.

Ian Fraser, chief executive officer and vice-president, exploration, stated: "We are extremely pleased with the results of the surface TDEM survey. It was a very important exercise for us to recognize, define and understand the EM signature associated with the historic Gochager Lake deposit. We now have a very good understanding of the surface signal and the geophysical setting of the deposit. We are very encouraged to see that this signal extends along strike and to see similar occurrences elsewhere in proximity to the deposit. Recognizing the structural setting and a similar VTEM/TDEM anomaly further along strike and aligning with an interpreted fold axis makes the area northeast of the Gochager deposit very prospective and a high-priority target area for future exploration efforts. Now knowing that high-grade nickel defined in our drill hole GL23003 occurs in association with very strong in-hole and off-hole BHEM conductivity signals, yet below a moderate-strength TDEM surface expression, has us very intrigued and excited about numerous other similar features (Gochager look-alikes) that we see in the historic 2008 VTEM data set."

The TDEM survey was conducted over five 100-metre-spaced lines immediately proximal to the Gochager deposit, plus two additional 100-metre-spaced lines northeast of the Gochager deposit. The company recognizes that the TDEM profile overtop of the Gochager deposit is a moderate-strength conductor and has a shape indicative of a steeply oriented conductive body or bodies. In contrast, the BHEM results from all holes probed to date indicate strong to very strong in-hole and off-hole conductivity responses. BHEM responses are consistent with multiple conductive zones with steeply oriented geometries, and several of the off-hole conductive zones lie outside of the historic drilling envelope at the Gochager Lake deposit.

BHEM interpretation is continuing and finalized 3-D imaging and modelling will be instrumental in the drill targeting process as the company looks forward to the August drill program at the Gochager Lake project. The TDEM survey has highlighted drill targets outside of the Gochager Lake deposit area that the company also looks forward to drill testing.

Grant of options to key company consultants

Pursuant to its stock option plan and the policies of the Canadian Securities Exchange, the company has granted incentive stock options to certain key consultants of the company for the right to purchase up to an aggregate of 535,000 common shares of the company, exercisable at a price of 26.5 cents per share for a period of 60 months.

Qualified person and data verification

Ian Fraser, PGeo, chief executive officer, vice-president, 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 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 nickel/copper plus platinum group elements from 1965 to 1969); and (2) the 22,000-plus-hectare Gochager Lake project, which is host to a historic, NI 43-101 non-compliant open-pit resource consisting of 4.3 million tons at 0.295 per cent nickel and 0.081 per cent copper.

Note: The Saskatchewan Mineral Deposit Index (SMID No. 0880) reports drill indicated reserves at the historic Gochager Lake deposit of 4,262,400 tons grading 0.295 per cent nickel and 0.081 per cent minable by open pit. Fathom cannot confirm the resource estimate or the parameters and methods used to prepare the reserve estimate. The estimate is not considered NI 43-101 compliant and further work is required to verify this historical drill indicated reserve.

We seek Safe Harbor.