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First Atlantic Nickel Acquires Ophiolite -X Project Targeting White and Orange Geologic Hydrogen, Carbon Capture, and Critical Minerals in Western Newfoundland

Mergers & Acquisitions

FIRST ATLANTIC NICKEL ACQUIRES OPHIOLITE -X PROJECT TARGETING WHITE AND

ORANGE GEOLOGIC HYDROGEN, CARBON CAPTURE, AND CRITICAL MINERALS IN WESTERN

NEWFOUNDLAND

Grand Falls -Windsor, Newfoundland and Labrador - (GlobeNewsWire - Dec 11, 2025) - First

Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the

"Company") is pleased to announce it has entered into agreements to acquire a 100% interest in 18

mineral licenses comprising 500 mineral claims (covering 12,500 hectares or 125 km 2) within the Blow

Me Down and Lewis Hills massifs in the Bay of Islands Ophiolite Complex (“BOIC”) in western

Newfoundland. The Company has branded this strat egic land position as the "Ophiolite-X" project,

recognizing its multi-commodity potential spanning geologic (natural and stimulated) hydrogen, carbon

capture and storage, awaruite nickel -iron-cobalt alloy mineralization, chromite, cobalt, copper, and

platinum group elements (“PGEs”). Peer -reviewed research by Memorial University has calculated

theoretical CO ₂ storage capacity for the entire BOIC equivalent to more than 13 years of global

emissions1 (source link ), while natural springs within the complex discharge dissolved hydrogen

generated through active serpentinization 2 (source link). This process is of such scientific significance

that NASA researchers have identified the Tablelands massif in the BOIC as a Mars analogue site for

studying serpentinizing environments3.

The BOIC comprises four large -scale ophiolite massifs, Table Mountain (Tablelands), North Arm

Mountain, Blow Me Down Mountain, and Lewis Hills, representing one of the world's best -preserved

and most complete ophiolite sequences. A recent study with funding from the Ministère de l'Économie,

de l'Innovation et de l'Énergie (MEIE) of Quebec, evaluating natural hydrogen potential across Quebec

(Séjourné et al., 2024), noted that the "potential for natural hydrogen in southern Quebec is not

necessarily limited to these areas. Key areas of interest include: 1) ophiolite complexes, which are

correlative with the Bay of Islands complex in Newfoundland where Szponar et al. (2013) sampled

strongly alkaline and highly reducing water sources containing dissolved hydrogen4."

In the Stanford University study Techno-economic analysis of natural and stimulated geological

hydrogen (Mathur et al., 2024 5), researchers concluded that "While both natural and stimulated

geological hydrogen present viable options for contributing to a sustainable energy future, practical

considerations such as resource availability, production control, and scalability make SGH a particularly

attractive option for long-term hydrogen production, especially when co -located with demand centers."

The study estimates production costs of approximately $0.54/kg for natural geological hydrogen and

$0.92/kg for stimulated geological hydrogen, both below the U.S. Department of Energy's $1/kg target6.

1Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters: an

experimental case study with Bay of Islands Ophiolite rocks, western Newfoundland, Canada

2Geochemistry of a continental site of serpentinization, the Tablelands Ophiolite, Gros Morne National Park: A Mars

analogue

3The Tablelands Ophiolite of Newfoundland: A Mars analogue site of present-day serpentinization

4Large-Scale Screening for Natural Hydrogen: a Quebec’s Perspective

5Techno-economic analysis of natural and stimulated geological hydrogen

6 https://www.sciencedirect.com/science/article/abs/pii/S0360319925038728

KEY HIGHLIGHTS:

1. Optimal Geological Hydrogen Source Rock: A 2024 study, with funding from the Government

of Quebec, evaluating 27 potential natural hydrogen source rocks, identified ophiolite complexes

as the first key area of interest for geologic hydrogen exploration, with the BOIC as the reference

analogue. D ocumented occurrences include "strongly alkaline and highly reducing water

sources containing dissolved hydrogen7", positioning the BOIC as the type locality for hydrogen-

prospective ophiolites in eastern Canada.

2. Active Geologic Hydrogen Generation: Active serpentinization within the BOIC produces

dissolved hydrogen (H ₂) in ultrabasic springs, where highly reducing conditions and pH values

up to 12.3 are conducive to ongoing abiotic natural hydrogen production8.

3. Bulqiza Chromite Mine Hydrogen Discovery Analogue: Historic podiform chromite

mineralization at Blow Me Down (32-40% Cr₂O₃, mined in 1918)9 and Springers Hill (up to 53%

Cr₂O₃ in harzburgite) 10 occur within serpentinized dunite -harzburgite sequences similar to

Albania's Bulqiza mine in the Mirdita Ophiolite, where chromite (33 -54% Cr ₂O₃) is hosted in

serpentinized harzburgite-dunite. A 2024 Science publication documented hydrogen with a purity

of 84% venting at an estimated 200 tonnes per year from Bulqiza, one of the largest flows ever

recorded, and noted that "places with similar geology should be good targets for finding other

natural sources of hydrogen11."

4. Samail Ophiolite Stimulated Hydrogen Analogue: The BOIC shares similar geological

characteristics with Oman's Samail Ophiolite, including serpentinized peridotite sequences,

brucite-bearing alteration assemblages and hyperalkaline, hydrogen-producing springs. In 2023,

Eden GeoPower signed the world's first agreement with Oman's Ministry of Energy and Minerals

to pilot stimulated geological hydrogen production in the Samail Ophiolite, positioning ophiolite

complexes as optimal targets for both natural hydrogen exploration and stimulated production.

5. CO₂ Capture Industrialization Potential: Memorial University researchers conclude that, by

"injecting CO ₂-enriched waters into the subsurface, this process could likely be industrialized

and require little energy input beyond drilling and pumping waters into the subsurface12."

6. Massive Carbon Capture Capacity: Research by Memorial University on the Project calculated

a theoretical "total CO ₂ storage capacity of 5.1 × 10 11 tonnes for the entire BOIC¹¹", equivalent

to more than 13 years of global CO ₂ emissions (based on 2022 global emissions of 36.8 Gt)

and over 700 times Canada's annual emissions. Even 1% carbonation could account for more

than 7 years of Canada's national CO₂ output13.

7. Most Efficient Carbon Capture Mineral: Brucite formed during serpentinization exhibits the

highest CO₂ reactivity among ultramafic alteration products, requiring only ~2.5 tonnes of mineral

7Large-Scale Screening for Natural Hydrogen: a Quebec’s Perspective

8Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters

9 https://gis.gov.nl.ca/mods/ModsCard.asp?NMINOString?temp=n&NMINOString=012G/01/Cr%20002

10 https://gis.geosurv.gov.nl.ca/mods/ModsCard.asp?NMINOString=012B%2F16%2FCr+002

11A deep reservoir for hydrogen drives intense degassing in the Bulqizë ophiolite

12 https://cdnsciencepub.com/doi/full/10.1139/cjes-2022-0116

13 https://cdnsciencepub.com/doi/full/10.1139/cjes-2022-0116

to sequester 1 tonne of CO₂, compared with ~4 tonnes of forsterite, ~6 tonnes of serpentine, and

>10 tonnes of basaltic glass. This positions brucite -bearing serpentinites as optimal targets for

carbon capture operations14.

8. Awaruite (Ni ₃Fe) Perspective Environment: Hydrogen is a required precursor for the

formation of awaruite nickel (Ni ₃Fe), a natural nickel alloy that commonly contains cobalt. The

highly reducing conditions created by serpentinization generate the hydrogen needed for

awaruite to form, providing direct mineralogical evidence of hydrogen-rich conditions15 16.

Please call 844-592-6337 or email [email protected] to connect with Rob Guzman, First Atlantic

Nickel's Investor Relations, for questions or more information.

14Concomitant generation of hydrogen during carbon dioxide storage in ultramafic massifs- state of the art with implications

to decarbonization strategies

15H2-rich fluids from serpentinization: Geochemical and biotic implications

16 https://www.pnas.org/doi/10.1073/pnas.0405289101

Figure 01: Images of natural springs containing dissolved hydrogen from Tablelands Ophiolite, BOIC

(Modified from Szponar et al. 2012) 17.

Figure 02: Hydrogen (H2) concentration in the 58 investigated 58 rock samples from various different

ultramafic systems (modified from Giuseppe et al., 2024)18.

ACADEMIC RESEARCH DOCUMENTS CARBON CAPTURE CAPACITY, GEOLOGIC HYDROGEN

PRESENCE, AND NEW GEOLOGICAL INTERPRETATIONS

The Company recently staked claims in the BOIC area following the publication of "Ultramafic rocks in

the Bay of Islands Ophiolite complex, Newfoundland Appalachians" in LITHOS by researchers from the

University of Ottawa and Geological Survey of Canada (Hattori et al., 2025). The research documents

that the Blow Me Down Mountain mass if contains an anomalously thick dunite layer, up to 5 km,

separating the gabbroic unit from harzburgitic mantle tectonites. This thickness is significantly greater

17Geochemistry of a continental site of serpentinization, the Tablelands Ophiolite, Gros Morne National Park: A Mars

analogue

18Natural hydrogen extracted from ophiolitic rocks: A first dataset

than in typical ophiolite sequences and indicates exceptional targets for hydrogen generation, carbon

sequestration, and nickel, chromium and PGE mineralization.

Peer-reviewed research conducted on the Blow Me Down massif by Memorial University, with funding

from the Natural Sciences and Engineering Research Council of Canada (NSERC) and Nalcor Energy

(Newfoundland and Labrador Hydro), demonstrated that these ultramafic rocks host exceptional carbon

sequestration capacity while simultaneously generating natural hydrogen through active

serpentinization. During serpentinization, brucite (Mg(OH) ₂), a highly reactive magnesium hydroxide

mineral, forms and represents the most efficient mineral for CO₂ capture, requiring only ~2.5 tonnes of

mineral to sequester 1 tonne of CO ₂. Critically, iron -bearing brucite (Fe -brucite) formed during

serpentinization can undergo later-stage oxidation to generate molecular hydrogen (H₂), creating a dual-

function mineral system capable of both carbon capture and hydrogen production19.

Figure 03: Carbon Sequestration Experiment from First Atlantic’s Newly Acquired Ophiolite-X Property

(Blow Me Down Massif); Photographs of white films on calcium hydroxide rich waters after the 4 hours,

ultra-basic carbon sequestration experiments. (A) Without the addition of crushed peridotite and (B) with

the addition of crushed peridotite.20

19Concomitant generation of hydrogen during carbon dioxide storage in ultramafic massifs- state of the art with implications

to decarbonization strategies

20Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters: an

experimental case study with Bay of Islands Ophiolite rocks, western Newfoundland, Canada

BAY OF ISLANDS OPHIOLITE: ACTIVE SERPENTINIZATION AND ABIOTIC HYDROGEN

GENERATION

The Tablelands massif within the BOIC has been the subject of extensive scientific research

documenting active serpentinization and hydrogen generation. The site has been designated as a Mars

analogue by researchers for studying present-day serpentinization, contributing to the scientific goals of

the Mars Science Laboratory (MSL), the ExoMars Rover mission, and the Mars Exploration Program

Analysis Group (MEPAG)21.

Research published by Szponar et al. (2013) characterized ultrabasic, reducing springs at the

Tablelands, reporting highly alkaline conditions with pH values up to 12.3 and highly reducing redox

potentials. These geochemical signatures are characteristic o f "Type II" waters associated with active

serpentinization at depth and indicate an environment where hydrogen is actively generated through

water-rock reactions.

The Tablelands springs represent surface expressions of a deeper serpentinization system, providing

direct evidence that hydrogen -generating reactions are ongoing within the BOIC. This active system

offers a natural laboratory for understanding hydrogen generation, migration and potential accumulation

in ophiolite-hosted settings.

21The Tablelands Ophiolite of Newfoundland: A Mars analogue site of present-day serpentinization

Figure 04: Photograph of Winterhouse ultra -basic pool. (B) Schematic planar and cross-sectional

sketches depicting the various water inputs into the WHC2 pool — A and B are locations of ultra-basic

reducing water discharging into the bottom of the pool, C is the location of overland flow that trickles into

WHC2. (modified from Morrill, 2014)22

WHITE VERSUS ORANGE HYDROGEN: GEOLOGIC HYDROGEN EXPLAINED

Orange hydrogen (also termed "stimulated geological hydrogen") is an engineering approach in which

fluids are injected into Fe(II)-rich rock formations to accelerate natural hydrogen-generating reactions.

Geologic (or "white") hydrogen refers to naturally occurring molecular hydrogen generated through

subsurface geological processes, primarily the oxidation of iron-bearing minerals during serpentinization

of ultramafic rocks. Unlike hydrogen produced from f ossil fuels (grey/blue) or electrolysis (green),

geologic hydrogen forms continuously through water-rock reactions and has a minimal carbon footprint.

The best targets for stimulated hydrogen production are ultramafic rocks such as peridotites, which can

produce 2 - 4 kg hydrogen per cubic met er of rock, up to four orders of magnitude more hydrogen

than mafic rocks such as basalts23 (Templeton et al., 2024). The BOIC, with its extensive serpentinized

peridotite sequences, brucite -bearing alteration assemblages and documented hydrogen -producing

springs, represents an optimal geological setting for both natural hydrogen exploration and potential

future stimulated production.

22 https://sci-hub.se/10.3389/fmicb.2014.00613

23Low-temperature hydrogen production and consumption in partially-hydrated peridotites in Oman: implications for

stimulated geological hydrogen production

Figure 05: Schematic block diagram highlights the different types of hydrogen generated by natural

processes and as industrial byproducts.24

24Orange hydrogen is the new green