Mr. Ian Fraser reports

FATHOM'S DRONE MAG SURVEY NEATLY CORRELATES RESULTS OF THE SUMMER SOIL GEOCHEMISTRY PROGRAM AT GOCHAGER LAKE PROJECT

Fathom Nickel Inc. has released the results from an unmanned aerial vehicle (UAV or drone) high-resolution geophysical magnetic (MAG) survey performed at the company's 100-per-cent-owned Gochager Lake property.

Fathom contracted Tuzo GeoSurveys Corp. to perform the drone MAG survey. The survey was flown from Aug. 7 to Aug. 10, 2024, resulting in 367.2 line kilometres flown. Data acquisition was conducted with traverse lines flown at an azimuth of 145 degrees with 30-metre spacing and tie lines flown at an azimuth of 055 degree with 300-metre spacing. In all, the survey area covered 9.58 square kilometres and was flown directly over the area covered by soil geochemistry in June, 2024. The results of this survey confirm that UAV is a very cost-efficient means of collecting high-resolution magnetic data, and has contributed significantly to Fathom's understanding of the dynamic, historic Gochager Lake deposit and surrounding area.

Ian Fraser, chief executive officer and vice-president, exploration, stated: "We are very pleased with the results of the drone MAG survey and look forward to additional surveys of this type as we continue to explore the Gochager Lake property. The detail from this survey provides a clearer perspective than the historic 2008 VTEM [versatile time-domain electromagnetic] data from which we have been working with to date. This new MAG data, along with results of the summer soil geochemistry and mapping/prospecting results, is further confirmation that the 'container' rock that hosts the Gochager Lake deposit is very much open along strike. The MAG survey also further reveals the structural complexity of the deposit area. We were very intrigued to see the 'eye-like' signal within our expanded footprint, and the excellent correlation between MAG and soil geochem results. The eye-like feature is possibly mapping a dilatant zone within a broad regional feature we interpret to be the possible magma conduit of the Gochager Lake deposit. The survey area has not closed off these encouraging trends. Like the soil geochemistry results, expansion of the MAG survey is required along strike. Detailed MAG, soil geochemistry and surface EM surveys are proving to be very successful as we continue to build an inventory of high-priority drill targets at the Gocher Lake property."

Completion of second-year anniversary payment of Gochager Lake earn-in agreement

Fathom is also pleased to report that both the cash payment and share issuance for the second-year anniversary of the Gochager Lake earn-in agreement has now been completed. Under the terms of the agreement, Fathom was required to make a cash payment of $30,000 and issue 250,000 shares in order to complete the second-anniversary requirements. However, at the request of the vendor, the terms of the second-anniversary requirements were amended to reduce the cash payment to $22,500 and increase the share issuance to 500,000 (the original 250,000 shares and additional 250,000 shares valued at three cents per share).

Commenting on the agreement, Doug Porter, president and chief financial officer, stated: "We were pleased when the Gochager Lake vendor approached us and requested an amendment to the agreement to weigh more heavily towards the share issuance. This clearly demonstrates the vendor's continued belief in the potential of the Gochager Lake property. With the required exploration spend of $2-million on qualifying exploration expenditures now also completed, we only have the final cash payment of $40,000 and the final issuance of 350,000 shares (required by Sept. 16, 2025), in order to complete the earn-in of 100 per cent of the Gochager Lake project (1)."

(1) Subject to a 2-per-cent net smelter return (NSR) royalty. The NSR can be bought down to 1 per cent based on a payment of $1-million at Fathom's option.

Quality assurance/quality control (QA/QC) disclosure statement

Strict quality control protocols were established and adhered to during the survey. These protocols were presented within a logistics report that was part of final deliverables to Fathom from Tuzo GeoSurveys. ALS GoldSpot Discoveries Ltd. vetted and processed the high-resolution drone magnetic survey data.

Qualified person and data verification

Ian Fraser, PGeo, chief executive officer, 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 and to secure the supply of North American critical minerals.

The company now has a portfolio of three 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 mine (2) (produced 28,724 tons at 3.3 per cent nickel, 1.8 per cent copper, 9.63 grams per tonne 3E (palladium-platinum plus gold) 1965 to 1969); and (2) the 22,000-plus-hectare Gochager Lake project that is host to a historic National Instrument 43-101 non-compliant open-pit resource consisting of 4.3 millions tons at 0.295 per cent Ni and 0.081 per cent Cu (3); and (3) the 10,000-plus-hectare Friesen Lake project located 40 kilometres southwest of the historic Rottenstone mine and 30 km northwest of the historic Gochager Lake deposit.

(2) The Saskatchewan Mineral Deposit Index (SMDI No. 0958) reports the production grades noted above from a small open pit. Fathom cannot confirm the production numbers nor a historic resource estimate that may have been in place ahead of production. The historic pit exists, and the company trusts the production, as noted in SMDI No. 0958, to be accurate. The company has performed test assaying of Rottenstone-type mineralization, and results are consistent with production grades.

(3) The Saskatchewan Mineral Deposit Index (SMDI No. 0880) reports drill indicated reserves at the historic Gochager Lake deposit of 4,262,400 tons grading 0.295 per cent Ni and 0.081 per cent Cu mineable by open pit. Fathom cannot confirm the resource estimate, nor 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.