Mr. Terry Lynch reports

POWER NICKEL TO RAISE $2,750,000 AT $0.90 PER SHARE TO COMPLETE NEXT STAGE OF FEASIBILITY STUDY WITH CVMR CORPORATION

Power Nickel Inc. has continued its 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 industry. CVMR is co-ordinating 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 (R&D) centre in Toronto, Canada.

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 that will make an initial investment of $2.75-million, representing 3,055,556 flow-through (FT) shares at 90 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 45 cents per share.

Each FT share will be composed of one common share of the company that qualifies as a flow-through share for purposes of the Income Tax Act (Canada) (ITA). All securities issued under the private placement will be subject to a four-month-and-one-day statutory hold period. 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 expects to close the deal by the end of November. The private placement is subject to TSX Venture Exchange approval.

"CVMR has enjoyed technical success in its benchmark studies to date and, after reviewing the preliminary reports, we are very encouraged with how well the mineralization is being processed. We look forward to reviewing the final benchmarking report soon and to our ongoing collaboration with CVMR," commented Terry Lynch, Power Nickel's chief executive officer.

"We are very encouraged with the ongoing drilling and exploration success at Nisk. We believe the upcoming NI [National Instrument] 43-101 report will likely suggest a commercial tonnage of nickel can be obtained, along with copper, cobalt, palladium and platinum. Our benchmarking tests have gone very well, and we believe the mineralization can be processed in the CVMR system in a manner that will provide very favourable yields. We are excited to deliver the final benchmarking studies shortly and look forward to conducting the prototype trial runs which will provide us further insight and confidence in the commercial viability of Nisk," commented Kamran M. Khozan, CVMR's CEO.

Further to the company's announcement made on Aug. 15, Power Nickel will make the next payment of $2.25-million to CVMR to complete the next stage of the feasibility study.

"At this time, the economics of using the CVMR process look even more compelling. Typically, a nickel miner will make a concentrate to sell to the refiners and leave at least 25 per cent of their nickel unrecovered, with much of the metal byproducts unrecovered or minimally recovered. Through the CVMR process to date, we have seen excellent recoveries in the nickel and in the metal byproducts. While the benchmarking studies will provide the first formal science on the recoveries, both CVMR and our team are excited enough to greenlight this next stage. Not only will we recover a lot more metals from the mineralization we process via the CVMR system, by delivering finished products like powders, nano powders, wire, anodes and EV [electric vehicle] precursors, we believe we will be able to earn two to three times the revenue with minimal incremental cost," commented Mr. Lynch, Power Nickel's CEO.

Qualified person

Kenneth Williamson, Geo, MSc, vice-president of exploration at Power Nickel, is the qualified person who has reviewed and approved the technical disclosure contained in this news release.

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 80 per 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. The Nisk property comprises a significant land position (20 kilometres of strike length) with numerous high-grade intercepts. Power Nickel is focused on expanding the historical high-grade nickel-copper PGE (platinum group element) mineralization 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.

In addition to the Nisk project, Power Nickel owns significant land packages in British Colombia and Chile. Power Nickel is expected to reorganize these assets in a related public vehicle through a plan of arrangement.

Power Nickel announced on June 8, 2021, that an agreement had been made to complete the 100-per-cent acquisition of its Golden Ivan project in the heart of the Golden Triangle. The Golden Triangle has reported mineral resources (past production and current resources) in 130 million ounces of gold, 800 million ounces of silver and 40 billion pounds of copper (Resource World). This property hosts two known mineral showings (gold mineralization and Magee) and a portion of the past-producing Silverado mine, reportedly exploited between 1921 and 1939. These mineral showings are polymetallic veins containing quantities of silver, lead, zinc, plus/minus gold and plus/minus copper.

Power Nickel is also 100-per-cent owner of five properties comprising over 50,000 acres strategically located in the prolific iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR (net smelter return) royalty interest on any future production from the Copaquire copper-molybdenum deposit, sold to a subsidiary of Teck Resources Inc. Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property borders Teck's producing Quebrada Blanca copper mine in Chile's first region.

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