Mr. Ian Fraser reports

FATHOM PROVIDES 2024 YEAR IN REVIEW AND OUTLOOK FOR 2025

Fathom Nickel Inc. has provided management's review of the company's activities from 2024 and a preliminary outlook for 2025.

Amid a challenging junior capital markets and commodity price landscape, Fathom has made several significant advances in 2024 at both its magmatic nickel sulphide projects: Gochager Lake and Albert Lake projects in north-central Saskatchewan. The company continues to attract the interest of notable third parties (majors and strategics), a testament to its methodical and scientific approach to exploration. It believes there is a very strong investment thesis at current prices to experience significant near-term share price gains based on several possible catalysts -- from both an internal and macro perspective.

Exploration highlights to date include:

Gochager Lake project:

• Two thousand twenty-four drilling demonstrated that the historic Gochager Lake deposit remains open for expansion to depth and along strike well beyond the historic boundaries.
• Importantly, exploration to date demonstrates tremendous upside potential in an expanded footprint area it has defined to be 25 times the area of the historic deposit.
• The historic Gochager Lake deposit is possibly one of several potential mineral deposits within the expanded footprint. Why?
  • The Gochager Lake deposit host rock continues along strike to the east-northeast and has been mapped for a minimum of 600 metres.
  • Very robust nickel-copper-cobalt in-soil assay anomalies, occurring approximately 1.5 kilometres east-northeast and approximately 1.0 km west-southwest of the historic deposit, grade significantly higher than the Ni-Cu-Co in-soil responses in the immediate historic deposit area.
  • Disseminated, massive sulphide vein and semi-massive sulphide breccia styles of mineralization (grading up to 2 to 3 per cent Ni) intersected in recent drilling at the historic deposit are consistent with a magmatic nickel sulphide deposit model and support the notion that massive sulphide Ni-Cu-Co mineralization can also be hosted within the recognized Gochager Lake deposit footprint.
• Fathom's near-term exploration strategy is focused on discovering massive sulphide bodies within the expanded footprint.

Albert Lake project:

• Two thousand twenty-four drilling at the Nic5-Tremblay-Olson area intersected Rottenstone-like host rock and Rottenstone-like metal tenor approximately 25 metres below surface, thus validating the very robust four-square-kilometre multielement soil geochemical anomaly occurring one to three km south-southwest of the historic very high-grade Rottenstone deposit.
• This provides further indications that mineralized ultramafic rock occurs subsurface and is being reflected by the four-square-kilometre Nic5-Tremblay-Olson soil geochemical anomaly.
• Numerous high-priority, near-surface and deep-coincident gravity and electromagnetic anomalies remain untested in the Nic5-Tremblay-Olson area.
• Fathom has proved unequivocally that the famous, world-class-grade Rottenstone deposit is not a one-off, isolated occurrence but is part of an open, dynamic magmatic nickel sulphide system that should yield Rottenstone-like grades within the vicinity of Rottenstone and elsewhere on the Albert Lake property.
• In 2024, the company discovered a gold zone with grades up to 2.68 g/t Au in an area 17.0 km along strike of Ramp Metals' Ranger gold discovery. The company has had preliminary discussions with certain strategic investors with respect to the gold prospects at the Albert Lake project.

Ian Fraser, chief executive officer and vice-president, exploration, stated: "In a very challenging junior exploration environment in 2024, our focused and methodical exploration approach has demonstrably advanced both projects. At Gochager, in just over a year and a half, and with just over 5,000 metres of drilling, we have reconstructed and expanded the historic Gochager Lake deposit. Importantly, our understanding of the dynamics and controls of this deposit have put us in an excellent position to make new, more significant discoveries at the 23,000-hectare Gochager Lake project. Now that we are armed with a comprehensive understanding of the geology, it is time to hunt for elephants. At Albert Lake, the new gold zone discovery has attracted significant interest to the property for its gold potential. We look forward to leveraging this opportunity going forward and continuing our exploration efforts in the Nic5-Tremblay-Olson area."

2025 outlook

Its immediate exploration plans for 2025 include:

• First quarter: approximately 75 line km of deep penetrating EM (electromagnetic) survey at Gochager Lake project;
• Q1: anticipate a permit to allow for transport of drill and ancillary equipment through winter trail and ice roads to Gochager Lake camp;
• Q1 and second quarter: small drill program at Mal Lake nickel occurrence during equipment mobilization to Gochager camp;
• Q2 and third quarter: mapping prospecting along Gochager Lake expanded footprint, ground-truth EM anomalies, followed by drilling;
• Q2 and Q3: mapping, prospecting at Albert Lake South gold zone.

The company expects to see an improvement in the nickel spot price in 2025. There is growing evidence that the government in Indonesia will continue to curb production in an effort to both improve commodity pricing and contain the vast environmental damage currently being inflicted by miners and processors. It is the company's belief that the demand for North American supplied critical metals is essential, and, specific to Fathom, there is a dearth of high-grade magmatic nickel sulphide projects in North America. There has not been a significant discovery of high-grade nickel-copper-cobalt-plus-platinum-group-elements in North America since the Voisey's Bay discovery 30 years ago, and Fathom feels it has the potential to make this type of discovery.

Mr. Fraser further commented: "I would also like to take this opportunity to thank our shareholders. It has been difficult to witness the deterioration of our share price while at the same time we continue to be very successful with our exploration results. Your patience and support are very much appreciated, and you can rest assured that management will continue to meet these challenges head-on and continue to work diligently in the best interests of our shareholders and our company. I would also like to thank our team, our consultants, and all suppliers and contributors to our 2024 exploration programs. Your support and continued excellent work is very much appreciated."

Qualified person and data verification

Ian Fraser, PGeo, CEO, VP, exploration, and a director of the company, 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 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 million tons at 0.295 per cent Ni and 0.081 per cent Cu; and (2) the Albert Lake project, a 90,000-plus-hectare project that was host to the historic and past-producing Rottenstone mine (produced 28,724 tons of 3.3 per cent Ni, 1.8 per cent Cu and 9.63 grams per tonne 3E (palladium plus platinum plus gold) (1965 to 1969); and (3) the 10,000-plus-hectare Friesen Lake project located 40 km southwest of the historic Rottenstone mine and 30 km northwest of the historic Gochager Lake deposit.

We seek Safe Harbor.