Mr. Terry Lynch reports

POWER NICKEL RAISES $2,180,000, OUTLINES 2024 PLANS

Power Nickel Inc. has closed a private placement for 4.36 million flow-through (FT) units of the company at a price of 50 cents per FT unit, for gross proceeds of $2.18-million. The FT unit closing completed on Dec. 29, 2023, while the balance of the backend adjustments completed last week. The company has received conditional TSX Venture Exchange approval for this private placement.

"We are pleased to close this financing to enable us to expand our exploration programs at Nisk. We will be bringing in a second drilling rig to focus on drilling the multiple new pods identified by our use of the Fleet Space Technologies ambient noise tomography technology previously reported. The 2024 drilling plans section, set out below, provides additional detail regarding this exciting development," said Power Nickel chief executive officer Terry 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 three years from the date of issuance. All securities issued under the private placement 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 delivers 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 per listed share for ten 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 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.

Power Nickel 2024 plans:

1. Advance Nisk exploration;
2. Complete CVMR feasibility study;
3. Spin out copper and gold assets into a Newco through a plan of arrangement;
4. Complete sale of royalty at Teck;-owned Copaquire;
5. Complete sale of 10-per-cent stake in Power Nickel and 10-per-cent offtake at Power Nickel to Industry;
6. Continue to vigorously defend its shareholders from predatory short-sellers.

Advancing Nisk exploration

The above 3-D (three-dimensional) view looking east outlines the company's current understanding of the location of the multiple pods that exhibit the same ambient noise tomography signatures that hosted the current nickel sulphide PGM mineralization at Nisk Main, along with the PGM-rich Wildcat target. The exploration plan will be to test the pods and, if successful, focus additional drilling in this area with a view to delineating another mineralized zone to add to Nisk Main. Each pod once successfully tested would have its own dedicated drilling rig.

"In 2023, Power Nickel was successful in increasing tonnage from a historical 2.04 million tonnes (measured and indicated) and 1.05 million tonnes (inferred) to a NI 43-101 mineral resource estimate of over 5.43 million tonnes (indicated) and 1.79 million tonnes (inferred), a 166 per cent and 74-per-cent increase in indicated and inferred resources respectively. For 2024, our primary exploration goal would be to improve on increasing resources while continuously better understanding the geology of the project. Our strategy would allow us to quickly show the full growth potential of the project and firmly position Nisk as one of the most exciting recent mining discoveries on the planet," commented Power Nickel vice-president of exploration Ken Williamson.

2. Completing CVMR feasibility study

In August, 2023, Power Nickel entered into a $7.5-million deal to conduct a feasibility study at Nisk financed by an investment from CVMR Inc.

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 R&D (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), super alloys, complex net shapes, electronics, rechargeable batteries, manufacture of aerospace and automotive parts, medical instruments, pharmaceuticals and dietary supplements.

To further the feasibility study, Power Nickel expects to receive the results of the benchmark studies conducted by CVMR in Q1, the prototype results in Q2 and the report in Q3. Preliminary results suggest up to a 30-per-cent improvement in mineral recovery by making a finished product at the mine versus the more conventional concentrate. In addition, CVMR notes that revenue for finished products versus concentrate has historically been 2.5 to 3 times the LME price for Nickel.

"The CVMR investment is an exciting one for Power Nickel in every respect. It should greatly enhance our economic returns, broaden our end product lineup thus sharply reduce cyclicality of returns, and it will also enable us to potentially produce the world's first carbon-neutral nickel products. A successful feasibility study with CVMR should speed up the construction decision at Nisk and showcase its substantial economic potential," commented Mr. Lynch, Power Nickel chief executive officer.

3. Spinning out copper and gold assets into Newco through plan of arrangement

It is expected in February that Power Nickel will announce the terms of the plan of arrangement and complete it in Q2. At that time, the company would expect to have fully financed the spinout initial plans privately while unassociated with the Power Nickel balance sheet. The company's expectation is that it would sell 10 per cent of the Newco for 10 per cent of the valuation of the Newco at spinout which it believes will be in the $10-million to $15-million range.

This financing will pay for the new ambient noise tomography of its projects in Chile. This will be the first time this technology will be used in Chile. Invented in Australia, it has been very successful in West Australia which has a desert environment like Chile.

"The Newco to be likely called Pan American Gold Equities will be a very substantial bonus for our shareholders and we think the exploration potential of our said gold and copper projects will be greatly enhanced using this exciting new technology that has been very well tested in a desert environment," stated Power Nickel chief executive officer Mr. Lynch.

4. Completing sale of royalty at Teck-owned Copaquire

Power Nickel has recently retained Voltaire Mineral Partners of Zug Switzerland to conduct a sales process on its existing royalty rights on the Copaquire project which it sold several years ago to Teck Resources Ltd.

The project has a historic NI 43-101 resource of over 100 million tonnes of copper mineralization at 0.4 per cent grade CuEQ and several exploration opportunities.

Power Nickel hopes and would expect to complete this process in H1 of 2024

5. Completing sale of 10-per-cent stake and 10-per-cent offtake to industry

Power Nickel plans to sell both a 10-per-cent stake in the company and a 10-per-cent offtake agreement on the production from any future mine at Nisk during H1 of 2024.

"Now that we have a current 43-101 mineral resource and a firm exploration plan, we have allowed several industry groups to access our data room to enable them to assess their interest in acquiring a stake in Power Nickel and in a potential offtake agreement. Given the scarcity of quality Nickel Class 1 assets and the potential Nisk has exhibited, we expect a robust market for this incoming investment opportunity. The funds to be received likely will be spread over two years and done in a way to leverage the 2:1 exploration funding Power Nickel has been able to generate; thanks to Quebec and Canada's attractive Critical Mineral tax incentive programs. Doing an investment this way will derisk the investment for our offtake partner, maximize funds for Power Nickel's ongoing exploration at Nisk and speed up the exploration and development at Nisk," stated Mr. Lynch, Power Nickel chief executive officer.

6. Continue to defend Power Nickel from predatory short-sellers.

On Dec. 12, the company filed a complaint with CIRO and FINRA on the irregularities we have discovered in the trading of Power Nickel stock.

Power Nickel will continue to work with fellow mining companies and advocacy group Save Canadian Mining to ensure that predatory short-selling ceases to be a factor in the trading of its shares.

"As you can see from our 2024 plans, we have a very ambitious program for this year. We look forward to communicating transparently with our interested stakeholders during 2024 at conferences, through podcasts, Zoom calls and in person. Our website has a wealth of information and provides various options on how we can answer questions from our shareholders. Together, we look forward to a very exciting and big year," added Power Nickel chief executive officer Mr. Lynch.

About Power Nickel Inc.

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

We seek Safe Harbor.