Mr. Ian Fraser reports

FATHOM ANNOUNCES COMPLETION OF FINAL REQUIREMENTS UNDER GOCHAGER LAKE EARN-IN AGREEMENT

Fathom Nickel Inc. has completed the final cash payment and share issuance under the Gochager Lake earn-in agreement. Fathom has completed all requirements under the agreement and now holds a 100-per-cent interest in the Gochager Lake property, subject to a 2-per-cent net smelter return royalty.

Ian Fraser, chief executive officer and vice-president, exploration, commented: "We are very pleased to have completed all requirements under the agreement to earn a 100-per-cent interest in the property. We have made tremendous advances at Gochager Lake since we entered into the agreement in September, 2022: We have expanded the Gochager Lake property footprint from the original 4,696 hectares (covered under the agreement) to now more than 34,000 hectares; through a consistent, science-based methodology, we developed a geological model that continues to support comparisons to certain world-class magmatic nickel sulphide projects; we have expanded the original Gochager Lake deposit to a mineralized corridor that now extends over 1.4 km and is open along strike in both directions; and we have developed a plethora of high-priority drill targets as we continue our goal of building a district-scale nickel camp in north-central Saskatchewan."

About the agreement

Under the terms of the agreement, to earn a 100-per-cent interest in the property, over the course of a four-year period, the company was required to:

• Issue an aggregate of 920,000 common shares of the company;
• Pay an aggregate of $92,000 in cash to the property vendor;
• Incur an aggregate of $2-million in exploration expenditures.

As a result of Fathom's exploration success at the property, the vendor requested a change in the consideration to increase the number of shares and reduce the aggregate cash payments. As a result, the aggregate cash payments were decreased by $12,500 to $79,500, and the aggregate number of shares was increased by 290,000 to 1.21 million. Additionally, as a result of its continuing exploration success, Fathom incurred the required exploration expenditures by the end of 2024, thus triggering the acceleration of the earn-in period from four years to three.

In accordance with the terms of the agreement, the company has granted the property vendor a 2-per-cent net smelter return royalty. The company has the right to purchase 1.0 per cent of the NSR from the property vendor for $1-million at any time.

Issuance of stock options

Pursuant to its stock option plan and the policies of the Canadian Securities Exchange, the company has granted incentive stock options to certain directors, officers and consultants of the company for the right to purchase up to an aggregate of 6.4 million common shares of the company, exercisable at a price of five cents per share for a period of 60 months. The options will vest one-third on the date of grant and one-third on each of the first and second anniversaries of the date of grant.

Qualified person and data verification

Ian Fraser, PGeo, chief executive officer, vice-president, exploration, 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 secure the supply of North American critical minerals and to support the global green energy transition. The company 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 hosts the historic Rottenstone mine; Fathom exploration to date at the Albert Lake project confirms:
   • The high-grade nickel-copper-cobalt-plus-3E Rottenstone deposit mineralization extends to the south a minimum 40 metres and remains open;
   • The Rottenstone deposit is potentially offset and continues within the footwall of a prominent fault defined by drilling;
   • A new Rottenstone-like discovery (similar host rock and similar mineralization) by drilling 500 to 550 metres west-northwest of the historic mine; the 300-plus-metre Bay Island trend remains open along strike;
   • Similar Rottenstone-like host rock and mineralization intersected by drilling approximately 1.5 kilometres south-southwest of the historic mine (the Nic5-Tremblay-Olson area).
2. The 34,000-plus-hectare Gochager Lake project that hosts the historic Gochager Lake deposit; Fathom exploration to date at the Gochager Lake project confirms:
   • Vertical extension of Ni-Cu-Co mineralization a minimum of 150 m below the historic Gochager Lake deposit interpreted boundary, and very good potential for expansion of mineralization in all directions;
   • Multiple high-grade vertically oriented Ni-Cu-Co sulphide breccia mineralization zones and chutes occur within the historic deposit, and the zones and chutes remain open for further expansion and delineation in all directions;
   • Surface mapping and soil/rock geochemistry has confirmed the Gochager Lake deposit host rock and mineralization style; the footprint extends a minimum 1.4 km to the east-northeast and remains open for expansion along strike.
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.

The Friesen Lake property hosts the Olsen copper-nickel-platinum showing also referred to as the Friesen Lake Cu-Ni-Pt showing and is described as an ultramafic dike in which historic trenching and drilling demonstrate copper-nickel-platinum-palladium and gold mineralization within the ultramafic dike (Saskatchewan mineral deposit index No. 0928a). To date, Fathom has not performed any exploration at the Friesen Lake project.

We seek Safe Harbor.