Mr. Terry Lynch reports

CVMR INVESTMENT TO FUND FEASIBILITY PROGRAM AT POWER NICKEL NISK PROJECT

Power Nickel Inc. has entered into an agreement with CVMR Corp., one of the world's leaders in nickel powder, wire and anode production, and a key supplier to the battery, defence and aerospace industries. CVMR will co-ordinate the production of advanced bench-scale, piloting and engineering studies on the Nisk nickel sulphide project near Nemaska, Que., to determine project feasibility. The agreement is staged, allowing for Power Nickel and CVMR to work together on various stages of engineering studies.

CVMR is a privately held metal refining technology provider that is also engaged in mining and refining of its own mineral resources in 18 different countries. The company was established in 1986, with its head office and research and development centre in Toronto, Canada.

CVMR is one of the world leaders in metal powder production used in 3-D printing, metal injection moulding (MIM), superalloys, complex net shapes, electronics, rechargeable batteries, manufacture of aerospace and automotive parts, medical instruments, pharmaceuticals, and dietary supplements.

In order to ensure this process was done in the least dilutive way possible Power Nickel has arranged to have WCPD Group organize a consortium of Quebec-based investors which will make an initial investment of $2.25-million representing 4.5 million flow-through shares at 50 cents per share. Wealth (WCPD Inc.) is one of the leading exempt market dealers offering efficient financing for Canadian resource and mineral exploration. As part of the process CVMR will acquire these shares from the front-end purchasers for 25 cents per share.

"It's been a creative collaboration working with CVMR on structuring this deal. Given their access to internal facilities and staff that is far less expensive than how we could expect to acquire this analysis from traditional suppliers, it also can be done much quicker than normal and will expedite our plans to commercialize Nisk as rapidly as humanly possible. The world needs a lot more Class 1 nickel if we are to hit our climate goals. Miners and processors must think and act creatively working with our government and native partners on ways to do this. This is a major step forward for Nisk," commented Power Nickel chief executive officer Terry Lynch.

"We were excited to discover the Nisk project and believe Power Nickel has a very exciting nickel project on its hands. We do not yet know how big it can be but we see enough there today to believe it has the potential to be a commercial mine. Our initial focus will be on a 10,000-ton-a-day plant. The way we like to develop our processing facilities is to approach them on a modular basis. In this way we can rapidly scale to match both demand for our products and the availability of supply of the raw material. In this way we believe we can produce a study that will show robust economics to justify the commercialization of Nisk. As Terry pointed out in his comments, the world needs a lot more Class 1 nickel if we are to meet our climate goals," commented CVMR CEO Kamran Khozan.

Power Nickel signed the contract with CVMR on Aug. 2 and CVMR will commence work on the project immediately and look to produce a various reports and deliverables over a nine-month period. The company will pay an initial deposit of $2.25-million to CVMR to commence work.

"Initial industry investment is a noteworthy moment. We believe this study will show there is enough in what we have discovered to become a commercial mine and we believe in working with CVMR and their scalable approach to manufacturing extremely high-end nickel products. The more we discover the more modules we could add and the more products. Products that obtain prices two and three times LME nickel.

"We believe these products will help us showcase robust economics that will justify rapid development. The proposed federal budget has a 30-per-cent tax credit to develop and build new critical mineral mines and provincially the government of Quebec in its budget is providing for up to a 25-per-cent tax credit. Our governments are doing their part in trying to build our new energy future with their advanced support of exploration and now development. Now it's our turn to show creativity, ingenuity and good old-fashioned hard work to move Nisk rapidly along our stated goal of building the world's first carbon-neutral nickel mine," commented Power Nickel CEO Mr. Lynch.

In addition, Power Nickel has also closed on the previously announced $200,000 private placement of 800,000 units issued at 25 cents per unit will consist of one common share and one share purchase warrant. Each warrant will consist of one common share exercisable for five years at 25 cents, subject to an accelerated expiry provision. The warrants are subject to an acceleration clause that entitles the company to notify 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 Venture Exchange is equal to or greater than 50 cents for 10 consecutive trading days. The acceleration notice can be provided at any time after the statutory hold period before the expiry date of the warrants. The funds raised will be used for general corporate purposes.

About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on developing the high-grade Nisk project into Canada's first carbon-neutral nickel mine.

On Feb. 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80per cent of the Nisk project from Critical Elements Lithium Corp. Subsequently, Power Nickel has exercised its option to acquire 50 per cent of the Nisk project and delivered notice to Critical Elements that it intends to exercise its second option to bring its ownership to 80 per cent. The last remaining commitment to activate this exercise of the option is the delivery of a National Instrument 43-101 technical report which is anticipated to occur at latest in Q4 2023.

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