Canada Nickel Successfully Completes Front End Engineering Design for the Crawford Project and Provides Corporate Update

Highlights (All amounts in US dollars, unless otherwise indicated) TORONTO, March 3, 2025 /PRNewswire/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) is pleased to provide results of Front End Engineering and Design ("FEED") activities for its Crawford Project, which were completed by the Company's consultants. Engineering activities focused on the initial capital cost utilizing data collected from a winter geotechnical programme, a test piling program and updated quotes. The mine plan was also re-sequenced to accelerate delivery of higher value ore from the East Zone and reduce pre-stripping by 30%. Mark Selby, CEO of Canada Nickel, said, "We are very pleased to complete another major milestone as we advance Crawford towards a construction decision. Many mining development projects have seen significant cost inflation over the last several years – I am very proud of our team and the robustness of our project that the initial capital cost increased by only 5%, particularly since the feasibility study had a cost basis dating from December 2022. The resequencing of the mining plan and updated operating costs have also yielded improved economics for the project." Mr. Selby continued, "With this milestone complete, we look forward to working with our project financing partners Scotiabank, Deutsche Bank, and Cutfield Freeman to complete the funding package for Crawford by year-end to be positioned to make a construction decision once permits are received. We are planning to utilize capital from this funding package for order placement of long-lead items and engineering activities. The Company is also pursuing a number of non-equity financing initiatives – including government funding – to provide the funding to complete the remaining permitting and engineering activities this year." Front End Engineering Design ResultsTable 1 compares key metrics for the FEED design with the Company's feasibility study in respect of the Crawford Project that was published in November 2023 (the "Feasibility Study"). To maintain comparability, all key economic assumptions are unchanged since the Feasibility Study, such as the notable exclusion of the Carbon Capture, Utilization and Storage Investment Tax Credits ("CCUS credits") for which the Company believes it would qualify. Inclusion of CCUS credits would increase NPV8% to $2.9 billion and IRR to 18.9%. Table 1 – FEED Update – Overall Project Metrics Metric units FEED Feasibility Study Change NPV8% US$ millions $2,810 $2,475 $335 IRR % 17.6 % 17.1 % 0.5 % Initial Capital Cost US$ millions $2,047 $1,943 $104 Total Capital Cost US$ millions $5,724 $5,157 $567 NSR US$/t $28.86 $28.08 $0.78 Operating Cost US$/t $10.60 $10.88 ($0.28) The primary focus of FEED was to update the initial capital cost estimate. The associated engineering has progressed to approximately 30% and is sufficient for preparation of long-lead orders. Since completion of the Feasibility Study, there has been significant inflationary pressure. However, the increase in overall capital cost has been held to 5% through optimization of the mining schedule and simplification to designs. Table 2 summarizes the change to key capital elements since the Feasibility Study. The other key change was a re-sequencing of the mine plan. Ore from the East Zone will now be mined and processed first, being brought forward on average 12 years. Ore from the Main Zone has correspondingly been deferred. With the reduced depth of overburden overlying the East Zone, this resequencing allows the pre-strip tonnage to be reduced by 30%. With East Zone ore now comprising the bulk of material processed during the payback period, additional metallurgy testing was performed. The resultant update to recoveries for East Zone ore have led to an increase in the average value of East Zone ore of 7.4%, to US$31.18/t. Recovery forecasts for Main Zone ore remain unchanged. Table 2 – FEED Capital Cost – Summary of Key Changes (US$ millions) Capital Costs Area Element Impact Explanation Directs Mining Pre-Stripping ($79) Reduced pre-stripping requirements Mining Fleet $10 Increased market prices Infrastructure $9 Improved definition of requirements Process Plant Crushing $30 Additional cost of excavation & support Remaining Plant $43 Improved definition of requirements Infrastructure All $50 Improved definition of requirements Indirects Owners Costs Surface Rights $23 Increased requirements Indirects All $9 Proportional to increase in Directs Contingency $10 Proportional to increase in Directs and Indirects Total $104 The capital cost estimate incorporates costs of US$ 23 million including the cost of the previously announced option to acquire surface rights (the "Option") announced on January 7, 2025 (the "January 7 Press Release") and estimates to acquire the remaining surface rights required for the project. Additionally, the Company can extend the Option annually up to a further five years for an additional payment of 2.5% of the option payment amount in cash for each such annual extension. Further to the January 7 Press Release, the Company has entered into an assignment agreement (the "Assignment") with Noble Mineral Exploration Inc. ("Noble") for the right to purchase 5,000 acres of real property located in Northern Ontario (the "Assignment Lands") and shall pay Noble $150,000 as consideration for the Assignment Lands. The Assignment is subject to the approval of the TSX Venture Exchange (the "TSXV"). About Canada Nickel Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless-steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero NickelTM, NetZero CobaltTM, NetZero IronTM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information, please visit www.canadanickel.com. Qualified Person Stephen J. Balch P.Geo. (ON), VP Exploration of Canada Nickel and a "qualified person" as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel. For further information, please contact: Mark Selby, CEOPhone: 647-256-1954Email: [email protected] Cautionary Statement Concerning Forward-Looking Statements This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information in this news release includes, but is not limited to: the updated economics in respect of the Crawford Project; the timing and ability of the Company to complete financing initiatives; the timing and ability of permitting and engineering activities in respect of the Crawford Project; the Company's qualification for the CCUS credits and the effect thereof of project economics; and statements regarding exploration results, exploration plans and other corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, exchange rate fluctuations, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the Company's properties, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE Canada Nickel Company Inc.

Canada Nickel Successfully Completes Front End Engineering Design for the Crawford Project and Provides Corporate Update

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