Mr. Terry Lynch reports

POWER NICKEL CLOSES FINAL TRANCHE OF FINANCING

Power Nickel Inc. has closed the final tranche of the private placement previously announced on March 13, 2023, for 1,032,000 flow-through units of the company, at a price of 50 cents per FT unit, for gross proceeds of $516,000. The company has received conditional TSX Venture Exchange approval for the private placement.

"We are pleased to close the final tranche of our previously announced private placement. It ended up at $4.81-million. We could have hung around for another week and closed more, but we just wanted to get this closed and focus on getting more great results out on our drilling and exploration program at Nisk," said Power Nickel chief executive officer Terry Lynch. "At the risk of being repetitive, we have benefited greatly by having our project in Quebec, where very favourable incentives exist for critical mineral projects like our Nisk nickel sulphide project at Nemaska."

Mr. Lynch commented further: "Quebec, Canada, is, in our opinion, the world's leading jurisdiction for exploration for critical minerals. This was further cemented by the recent Quebec and Canadian budgets, which provide substantial incentives to explore critical minerals and build mines. In our case, this financing is focused on exploration, and we were able to raise twice as much money with half the dilution. Going forward, the new, unappreciated by the market incentives could, for example, advance as much as $200-million (U.S.) to building a $400-million nickel mine. While significant steps remain before determining if a mine would be viable and the budgets are not yet law, these are substantial incentives that derisk projects for investors and enable governments to inspire investment and development in the critical mineral sector. We look forward to utilizing these incentives on our quest to build the world's first carbon-neutral nickel mine."

The company expects to have additional assays available for release next week and believes the next two months could be among the busiest and best for Power Nickel.

"We are planning to have multiple material releases coming on additional assay results, the results of the airborne EM [electromagnetic], the release of the results of the metallurgical study, the commencement of the fleet ambient noise tomography program and some potential major surprises. Nisk is delivering the goods, and we will be working hard to get the word out via our appearances at multiple conferences and a heavy podcast schedule," commented Mr. Lynch.

Each FT unit comprises one common share of the company that qualifies as a flow-through share for purposes of the Income Tax Act (Canada), and one-half of one transferable non-flow-through common share purchase warrant. Each warrant is exercisable into one non-flow-through common share at an exercise price of 50 cents per warrant share for five years from the date of issuance. All securities issued under the private placement, including the broker warrants (described below), are subject to a four-month-and-one-day statutory hold period. The warrants are subject to an acceleration clause that entitles the company to provide notice to holders that the warrants will expire 30 days from the date the company provides the acceleration notice. The company can only provide the acceleration notice if the closing price of the company's common shares on the TSX-V is equal to or greater than $1 for 10 consecutive trading days. The acceleration notice can be provided at any time after the statutory hold period and before the expiry date of the warrants.

The company intends to use the gross proceeds from the sale of the FT shares for exploration activities on the company's Nisk property located in Quebec and to incur eligible Canadian exploration expenses, within the meaning of the ITA, that will qualify for the federal 30-per-cent critical mineral exploration tax credit.

The company paid finder's fees of $30,960 in connection with the closing of the second tranche of the offering. It issued 61,920 broker warrants enabling the broker to purchase common shares for 50 cents until Nov. 4, 2024.

About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold and battery metal prospects in Canada and Chile. On Feb. 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80 per cent of the Nisk project from Critical Elements Lithium Corp. The Nisk property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts. Power Nickel is focused on expanding its current high-grade nickel-copper-PGE (platinum group element) mineralization National Instrument 43-101 resource with a series of drill programs designed to test the initial Nisk discovery zone and to explore the land package for adjacent potential nickel deposits.

We seek Safe Harbor.