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 units previously announced on April 10, 2025. As part of this initial closing, the company issued 35,902,500 units at a price of three cents per unit for gross proceeds of $1,077,075. An additional closing under the offering of up to approximately $420,000 is expected on or before May 23, 2025.

Each unit under the offering consists of one common share and one 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 five cents.

Of the units issued under the offering, 14,235,833 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 remaining 21,606,667 units were issued to accredited investors under NI 45-106 and stipulate a four-month hold on the resale of the securities.

The gross proceeds of the offering will be used by the company for exploration-related work at the company's Gochager Lake project and for working capital and general corporate purposes.

As consideration for services in connection with the offering, the company has paid to certain qualified entities a cash commission of $7,875 and issued 262,500 broker warrants. Each broker warrant will entitle the holder thereof to acquire one common share at a price of five cents for a period of 36 months from issuance.

Crescat Capital LLC participated in the offering with a strategic investment representing 46 per cent of the total shares issued in the offering. This brings Crescat's ownership/control position in Fathom to approximately 18.2 per cent of the common shares currently outstanding, on a non-diluted basis.

About Fathom Nickel Inc.

Fathom is an exploration company that is targeting magmatic nickel sulphide discoveries to support the energy transition 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 to 1969); and (2) the 23,000-plus-hectare Gochager Lake project, which is host to a historic NI 43-101 non-compliant open-pit resource consisting of 4.3 million 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.