Mr. Ian Fraser reports

FATHOM ANNOUNCES FINANCING UPDATE AND PARTICIPATION AT PDAC CORE SHACK

Further to the Dec. 24, 2024, press release, Fathom Nickel Inc. has closed its non-brokered offering of flow-through units and non-flow-though units, as first announced on Nov. 15, 2024. Pursuant to the offering, the company issued 8.55 million flow-through common share units at a price per FT unit of four cents for gross proceeds of $342,000, and 1,600,714 non-flow-through units at a price per NFT unit of 3.5 cents for gross proceeds of $56,025. Combined gross proceeds for this initial closing of the offering were $398,025.

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

The FT and NFT 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 NFT 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 finders 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.

New financing announcement

Initially, the company anticipated a second tranche of the offering that was expected to close in mid-January, 2025. However, because the offering did not close within a 45-day window of its original announcement, the Canadian Securities Exchange has advised Fathom to formally close the offering.

Due to the continuation of a very sluggish capital market and commodity price environment, Fathom now announces its intention to issue up to 23.5 million non-flow-through units at a price of three cents per new NFT unit for gross proceeds of $705,000. Each new NFT unit is composed of one common share and one warrant, with each new warrant entitling the holder to acquire one common share for a period of 36 months from issuance, at an exercise price of five cents. The new warrants will also contain an accelerator clause. Under the terms of the accelerator clause, commencing on the date 18 months from issuance of the new warrant, if the company's shares trade at a price of not less than 15 cents per share for 20 consecutive trading days, the company can force new warrantholders to exercise the new warrants by providing notice under the accelerator clause. Upon notice, holders of new warrants will have 45 days to exercise the new warrants or lose their exercise rights thereunder.

The net proceeds from the new offering will be used for working capital and general corporate purposes. The new offering is expected to close on or about March 31, 2025, or such other date as the company may determine.

The new offering will be completed by way of an exemption from the prospectus requirements available under Section 5A.2 and other sections of National Instrument 45-106 (Prospectus Exemptions). There is an offering document related to this new offering that can be viewed under the company's profile at SEDAR+ and at the Fathom Nickel website. Prospective investors should read this new offering document before making an investment decision.

The new offering is subject to customary closing conditions, including the approval of the securities regulatory authorities and the Canadian Securities Exchange.

Participation in Prospectors & Developers Association of Canada core shack

Fathom is also pleased to announce that it has been invited to present Gochager Lake project drill core at the PDAC core shack March 4 and March 5, 2025.

The company invites attendees of this year's PDAC to come visit booth No. 3113B on March 4 and March 5 to see GL23003 drill core, to meet management and to discuss exploration plans at the Gochager Lake project going forward.

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 tons of 3.3 per cent nickel, 1.8 per cent copper and 9.63 grams per tonne 3E (palladium-platinum-gold) 1965 to 1969); (2) the 23,000-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 (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.