Mr. Doug Porter reports

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

Fathom Nickel Inc. has closed the first tranche of its non-brokered offering of flow-through units and non-flow-though units, previously announced on Nov. 15, 2024. Pursuant to the offering, the company issued 8.55 million flow-through common share units at a price per flow-through unit of four cents for gross proceeds of $342,000 and 1,600,714 non-flow-through units at a price per non-flow-through unit of 3.5 cents for gross proceeds of $56,025. Combined gross proceeds for this initial closing of the offering was $398,025. The second tranche of the offering is expected to close in mid-January, 2025.

Each non-flow-through unit consists of one common share of Fathom and one-half of a transferable common share purchase warrant. Each full warrant shall be exercisable into one common share for a period of 36 months from issuance at an exercise price of seven cents.

Each flow-through unit consists of one common share issued on a flow-through basis and one-half of a warrant.

The flow-through and non-flow-through units issued under the offering were issued under the listed issuer financing exemption set forth under Section 5A.2 of National Instrument 45-106, Prospectus Exemptions, and contain no resale restrictions.

The gross proceeds of the flow-through portion of the 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, 2025. All qualifying expenditures will be renounced in favour of the subscribers effective Dec. 31, 2024. The net proceeds of the offering from the non-flow-through 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 offering, the company has paid to certain qualified a cash commission of $21,000 and issued 525,000 broker warrants. Each broker warrant will entitle the holder thereof to acquire one common share of the company at a price of five cents for a period of 36 months from issuance.

"We had a request to defer a part of the closing into fiscal 2025 from certain U.S.-based investors and finders. As a result, we decided to close on the flow-through units prior to Dec. 31, 2024, in order to ensure the tax benefits accrued to participants for the 2024 tax year but keep the NFT units open into January, 2025, to accommodate these additional investors. The second tranche of NFT is expected to close in mid-January," stated Doug Porter, president and chief financial officer.

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 (produced 28,724 tonnes at 3.3 per cent nickel, 1.8 per cent copper and 9.63 grams per tonne 3E (palladium/platinum plus gold) from 1965-1969); (2) the 23,000-plus-hectare Gochager Lake project, which is host to a historic, National Instrument 43-101 non-compliant open-pit resource consisting of 4.3 million tonnes at 0.295 per cent nickel and 0.081 per cent copper; and (3) the 10,000-plus-hectare Friesen Lake project, located 40 kilometres southwest of the historic Rottenstone mine and 30 kilometres northwest of the historic Gochager Lake deposit.

We seek Safe Harbor.