Mr. Brad Humphrey reports

NICAN RECEIVES WORK PERMIT FOR MAIDEN DRILL PROGRAM AT PIPY SOUTH NICKEL PROJECT IN THOMPSON MANITOBA

Nican Ltd. has received a work permit for its initial exploration program at the Pipy South project in the Thompson area of Manitoba. The work permit includes diamond drilling to test the nickel mineralization potential of the Pipy South property.

Brad Humphrey, president and chief executive officer of Nican, commented: "Nican is extremely pleased to be able to commence exploration work, including diamond drilling, on the highly prospective Pipy South project. We are finalizing our exploration plans so we can commence drilling soon. No drilling has been conducted on the property for the last 50 years.

"The project area has excellent access, with paved roads cutting across the property, and is located just north of the city of Thomspon, which hosts Vale's long-producing, Thompson nickel mine. Historical drill logs indicate that nickel mineralization has been intersected on the property, which is underlain by the essential Pipe formation. The Pipe formation is known to host all the economic nickel mineralization within the Thompson nickel belt."

Pipy project overview

The Pipy properties consist of three project areas, Pipy South, Pipy North and Pipy West, totalling 39.1 square kilometres in the Thompson area. Initial exploration activities will focus on the Pipy South project, which is adjacent to the Mystery Lake South area, located approximately 12 km northeast of the city of Thompson and Vale's Thompson nickel mine, with excellent road access and local infrastructure.

The Pipy South project is underlain by an eight-kilometre-long synclinal structure exposing Ospwagan group sediments, including the critical Pipe formation that hosts the nickel deposits in the Thompson nickel belt. Historical drill hole assays are not available; however, eight drill logs note significant intervals of up to 8.2 metres of disseminated sulphides, including short intervals of massive sulphides or sulphide breccia with pentlandite mentioned in five drill holes.

A high-resolution unmanned aerial vehicle airborne magnetic survey completed in 2022 was instrumental in interpreting the geological and new structural model developed from the 3-D inverted magnetic data. The magnetic data revealed the syncline comprised two synclines on the east and west edges with an anti-cline in the middle. The various fold closures associated with the synclines and anti-clines are an ideal location to structurally concentrate massive sulphides. The Pipy South synclinal structure is located on the lower limb of a refolded nappe, and the same nappe exposed farther to the west hosts the Thompson T1 and T3 deposits on the overturned folded upper limb. The Birchtree and Pipe nickel deposits are on strike with Pipy South, were previously mined by Inco Ltd. and are located on the lower limb of the folded nappe.

The Pipy South area was explored in the late 1950s, through the early 1970s. There are 71 historical drill holes, 48 of which were drilled by Inco in 1967 and 1968. Much of the early drilling was shallow and appears to be testing conductors. The assessment files only contain summary drill logs for the 1967 Inco drilling with more detailed logs for nine of the 12 drill holes drilled in 1968. Importantly, eight drill holes mention significant intervals of disseminated sulphides, including short intervals of massive sulphides or sulphide breccia, and five drill holes mention pentlandite. Several drill holes intersected intervals of ultramafic rock. None of the historical Inco drill logs included any assay information.

The company has identified a number of drill targets as a result of the reinterpretation of the historical drilling data and the new structural model developed for the Pipy South property.

Qualified person

Stanley Clemmer, PGeo, a consultant to Nican, who is a qualified person under National Instrument 43-101 (Standards of Disclosure for Mineral Projects) has reviewed and approved the scientific and technical information in this press release.

About Nican Ltd.

Nican is a mineral exploration company, trading under the symbol NICN on the TSX Venture Exchange. The company is actively exploring two nickel projects, both located in well-established mining jurisdictions in Manitoba, Canada.

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