CNC.V · 2025-12-18 12:00:00

1the potential quantity and grade is conceptual in nature; there has been insufficient exploration to define a mineral resource; it is uncertain if further exploration will result in the target being delineated as a mineral

Corporate Updates

1the potential quantity and grade is conceptual in nature; there has been insufficient exploration to define a

mineral resource; it is uncertain if further exploration will result in the target being delineated as a mineral

resource (also see below).

Canada Nickel Announces

Initial Resources at Midlothian and Bannockburn Projects

Highlights:

• Midlothian delivers highest nickel grade: 595 million tonnes (Mt) Inferred Resource at 0.28% nickel;

• Bannockburn resource established: 63 Mt Indicated Resource at 0.28% nickel and 129 Mt Inferred

Resource at 0.27% nickel.

• Timmins Nickel District expanded: Eight deposits now total 3.9 billion tonnes (Bt) Measured & Indicated

Resources at 0.24% containing 9.4 Mt of contained nickel and 4.9 billion tonnes (Bt) Inferred Resources

at 0.23% containing 11.5 Mt of contained nickel

TORONTO, December 18, 2025 - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSX-V:CNC)

(OTCQB: CNIKF) today announced initial mineral resource estimates (the “Mineral Resource Estimate” or “MRE”)

for its Midlothian Nickel Sulphide Project (“Midlothian”) and Bannockburn Nickel Sulphide Project

(“Bannockburn”), located 64 km southeast of Timmins and 20 km west of Matachewan, Ontario.

Mark Selby, CEO of Canada Nickel said, “ We continue to demonstrate the world class potential of the Timmins

Nickel District and have now published eight of nine resources, with over 3.9 billion tonnes at 0.24% nickel for 9.4

million tonnes of Measured and Indicated nickel, and 4.9 billion tonnes at 0.23% nickel for 11.5 million tonnes of

Inferred nickel. We were very pleased with both the Bannockburn and Midlothian resources – particularly as the

Midlothian resource was generated from just 45% of the target geophysical footprint and yielded the highest

average grade resource to date from our projects in the Timmins Nickel District. We expect to publish the final

resource at Nesbitt in the first quarter of 2026.”

Timmins Nickel District

The Company has published mineral resource estimates for eight of its properties in the Timmins area, amounting

to 3.98 billion tonnes of 0.24% nickel in Measured & Indicated resources, for a total of 9.4 million tonnes of nickel

metal, and an Inferred Resource of 4.95 billion tonnes of 0.23% nickel , for a total of 11.5 million tonnes of

contained nickel metal (Table 1).

The Company continues to show the potential of its property package in the Timmins Nickel District . For

comparison, the Sudbury Nickel District had an estimated pre-mining resource of 19 million tonnes of contained

nickel (Naldrett and Lightfoot, 1993; Lesher and Thurston, 2002).

1the potential quantity and grade is conceptual in nature; there has been insufficient exploration to define a

mineral resource; it is uncertain if further exploration will result in the target being delineated as a mineral

resource (also see below).

Table 1. Total Measured, Indicated and Inferred Resources on Canada Nickel Properties.

M&I Inferred Exploration

Target

Project

Geophysical Resource

Resource

(Bt) Ni %

Contained

Resource

(Bt) Ni %

Contained

Tonnage (Bt) Footprint

(km2) Date/Target Nickel

(Mt)

Nickel

(Mt)

Crawford 1.6 Oct-23 2.56 0.24 6.03 1.69 0.22 3.73 -

Reid 3.9 Dec-24 0.59 0.24 1.43 0.99 0.23 2.24 0.9-2.1

Mann W 3.4 Jun-25 0.41 0.23 0.95 0.60 0.22 1.31 0.5-1.0

Mann CE 3.1 Jul-25 0.24 0.22 0.52 0.54 0.21 1.15 0.6-2.0

Deloro 0.4 Jul-24 0.08 0.25 0.20 0.36 0.25 0.89 -

Texmont 0.1 Jul-25 0.04 0.29 0.11 0.05 0.25 0.14 -

Bannockburn 0.4 Dec-25 0.06 0.28 0.18 0.13 0.27 0.34 0.06-0.35

Midlothian 1.7 Dec-25 - - - 0.59 0.28 1.68 0.43-0.98

TOTAL 15.0 3.98 0.24 9.42 4.95 0.23 11.48

Midlothian Mineral Resource Estimate

The Midlothian Project is 110 km south of the Company’s flagship Crawford Nickel Sulphide Project (“Crawford”)

and approximately 27 km southwest of the town of Matachewan. The area of the geophysical target covered by

the Midlothian mineral resource estimate (MRE) represents approximately 45% of its total target geophysical area.

Midlothian is accessible year-round.

For the initial MRE, a total of 9,268 metres of core drilling from 22 drill holes were utilized to calculate the

Midlothian Inferred Resource category as summarized in Table 2. All drill holes belong to Canada Nickel and were

drilled in the 2023, 2024 and 2025 drilling campaigns.

Inferred Resources total 595 million tonnes grading 0.28% nickel, for a total of 1.68 million tonnes of contained

nickel. The approximate dimensions of the Midlothian MRE are 2.5 kilometres long, up to 520 metres wide,

extending to 500 metres deep, and remaining open to the east and at depth . An additional 434 to 980 million

tonnes grading between 0.25% and 0.27% nickel remain as an Exploration Target1, pending further drilling. This

Exploration Target is based on core drilling by the Company, the geophysical survey on the Project, and the

understanding and calculation of the current Midlothian MRE.

The Exploration Target was derived by modelling the identified nickel sulphide mineralization within the current

estimation envelope but outside of the current M RE area. The volume of the mode lled Exploration Target area

determines the potential tonnage statement in the Exploration Target. The grade range given in the Exploration

Target is determined with consideration to the drill core results within the mode lled Exploration Target area,

consideration of the geological setting in a well understood nickel d eposit type where grades are observed and

well understood and based on the experience of the Company and the Qualified Persons. The potential tonnages

and grades are conceptual in nature and are based on drill holes and geophysical results that define the

approximate length, thickness, depth and grade of the Exploration Target. There has been insufficient exploration

to define a current mineral resource and the Company cautions that there is a risk that further exploration will

not result in the delineation of a current mineral resource.

The Midlothian MRE was prepared by Caracle Creek International Consulting Inc. and its sub -consultant L&M

Geociencias, in accordance with CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines

(2019) and CIM Definition Standards for Mineral Resources & Mineral Reserves (2014). A Technical Report in

support of the Mineral Resource Estimate will be filed on SEDAR+ (www.sedarplus.ca) within 45 days of this news

release.

Table 2. Initial Total Mineral Resource Estimate (in-pit resources) for the Midlothian Nickel Sulphide Deposit.

Mineral Resource Estimate Contained Metal

Class Tonnage

(Mt)

(%)

(g/t)

(kt)

(Mt)

(kt)

(koz)

Inferred 595.3 0.28 0.011 4.72 0.18 0.003 0.004 1,684 64.4 28.1 1,057 56.3 69.9

Notes to Table 2:

1. The independent Qualified Person for the Mineral Resource Estimate (“MRE”), as defined by National Instrument 43 -

101 (“NI 43 -101”), is Dr. Scott Jobin -Bevans (P.Geo., PGO #0183), of Caracle Creek International Consulting Inc. The

effective date of the Mineral Resource Estimate is December 15, 2025.

2. The quantity and grade of reported Inferred Resources in this M RE are uncertain in nature and there has been

insufficient exploration to define these Inferred Resources as Indicated or Measured. However, it is reasonably expected

that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Reso urces with continued

exploration.

3. A cut-off grade of 0.10% Ni was used to define potentially economic material for inclusion within the MRE. Cut -offs

were determined on the basis of core assay geostatistics and drill core lithologies for the deposit, and by comparison

to analogous nickel deposit types.

4. Geological and block models for the MRE used data from a total of 22 surface drill holes, completed by Canada Nickel

in 2023, 2024 and 2025. The drill hole database was validated prior to resource estimation and QA/QC checks were

made using industry -standard control charts for blanks, core duplicates and commercial certified reference material

inserted into assay batches by Canada Nickel and by comparison of umpire assays performed at a second laboratory.

5. Estimates have been rounded to two significant figures.

6. The MRE was prepared following the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines

(November 29, 2019) and the CIM Definition Standards for Mineral Resources & Mineral Reserves (May 19, 2014).

7. The geological model as applied to the MRE comprises three mineralized domains hosted by variably serpentinized

ultramafic rocks: a higher -grade core (dunite), a slightly lower grade halo (transitional dunite) and a lower grade

marginal domain (peridotite). Individual wireframes were created for each domain in Leapfrog Geo 2025.2 software.

8. A 20 m x 20 m x 15 m block model was created, and samples were composited at 7.5 m intervals. Grade estimation

from drill hole data was carried out for Ni, Co, Fe, Cr, S, Pd and Pt using the Ordinary Kriging interpolation method in

Isatis 2024.12 software.

9. The MRE has been constrained by a conceptual pit envelope that was developed using the following optimization

parameters. Metal prices used were US$21,000/t nickel, US$40,000/t cobalt, US$325/t iron, US$3,860/t chromium,

US$1,350/oz palladium, and US$1,150 /oz platinum. Different pit slopes were used for each layer (in degrees): 9.5 in

clay, 11.3 in sand & till, and 45.0 in rock. Exchange rate utilized was C$ = US$0.76. Mining costs utilized different values

for overburden (clay, gravel), and rock mining, ra nging from C$1.64 to C$4.32/t mined. Processing and G&A costs for

a 120 ktpd operation (similar to the ultimate scope of Crawford) have been estimated at C$8.20/t. Based on the range

of grade and ratio of sulphur to nickel, calculated recovery averages 39% for Ni, 6% for Co, 56% for Fe and 25% for Cr,

32% for Pd and 12% for Pd.

10. Grade estimation was validated by comparison of input and output statistics (Nearest Neighbour and Inverse Distance

Squared methods), swath plot analysis, cross -plots of declustered samples against the nearest OK estimate, and by

visual inspection of the assay data, block model, and grade shells in cross-sections.

11. Density estimation was carried out for the mineralized domains using the Ordinary Kriging interpolation method, based

on 947 specific gravity measurements collected during the core logging process, using the same block model parameters

of the grade estimation. As a reference, the average estimated density value within dunite is 2.56 g/cm3 (t/m3), the

transitional dunite domain yielded an average of 2.61 g/cm3 (t/m3), while the peridotite domain is 2.76 g/cm3 (t/m3).

Figure 1. Plan View of Midlothian Nickel Sulphide Project, Ontario.

Figure 2. Plan View of the Categorized Midlothian Resources (TOP) along with %Ni Grade (BOTTOM).

Figure 3. Midlothian Nickel Sulphide Project Long-Section (Looking North) of Resource Categories (TOP) and %

Ni Grade (BOTTOM).

Next Steps at Midlothian Nickel Sulphide Project:

• A technical report with respect to the MRE disclosed today will be filed within 45 days of this news release.

• Infill drilling at the property will aim to increase and upgrade Inferred Resources to Indicated Resources

in the next drilling campaign.

• Mineralogical and metallurgical analysis will continue to better understand and estimate metal recoveries.

Bannockburn Mineral Resource Estimate

The Bannockburn Project is 100 km southeast of the Company’s flagship Crawford Nickel Sulphide Project

(“Crawford”). The area of the geophysical target covered by the Bannockburn MRE represents approximately 70%

of its total target geophysical area. Bannockburn is accessible year-round.

For the initial M RE, a total of 8,528 metres of core drilling from 25 drill holes were utilized to calculate the

Bannockburn resources in two categories, as summarized in Table 3. Seventeen drill holes belong to the Canada

Nickel 2023-2024 drilling campaigns, while the remaining 8 holes are from an inherited dataset from Grid Metals

drilling in 2021.

Indicated Resources total 63 million tonnes grading 0.28% nickel, for a total of 0.18 million tonnes of contained

nickel and Inferred Resources total 129 million tonnes grading 0.27% nickel, for a total of 0.34 million tonnes of

contained nickel. The approximate dimensions of the Bannockburn MRE are 1.2 kilometres long, up to 330 metres

wide, extending to 500 metres deep, and remaining open in all directions.

Drilling at Bannockburn was conducted in 2023 and 2024. The 2024 campaign successfully completed the goal of

infilling previous sections to allow for the definition of an initial mineral resource estimate, gain understanding on

the geology of the deposit, as well as systematically collecting samples for mineralogical analysis.

The Bannockburn MRE was prepared by Caracle Creek International Consulting Inc. and its sub-consultant L&M

Geociencias, in accordance with CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines

(2019) and CIM Definition Standards for Mineral Resources & Mineral Reserves (2014). A Technical Report in

support of the Mineral Resource Estimate will be filed on SEDAR+ (www.sedarplus.ca) within 45 days of this news

release.

Table 3. Initial Total Mineral Resource Estimate (in-pit resources) for the Bannockburn Nickel Sulphide Deposit.

Mineral Resource Estimate Contained Metal

Class Tonnage

(Mt)

(%)

(g/t)

(kt)

(Mt)

(kt)

(koz)

Indicated 63.2 0.28 0.009 3.79 0.11 0.006 0.006 179.7 5.9 2.4 67.3 12.1 12.2

Inferred 129.0 0.27 0.010 4.51 0.15 0.006 0.006 342.9 12.6 5.8 0.15 24.2 25.8

Notes to Table 3:

1. The independent Qualified Person for the Mineral Resource Estimate (“MRE”), as defined by National Instrument 43-

101 (“NI 43-101”), is Dr. Scott Jobin -Bevans (P.Geo., PGO #0183), of Caracle Creek International Consulting Inc. The

effective date of the Mineral Resource Estimate is December 15, 2025.

2. The quantity and grade of reported Inferred Resources in this M RE are uncertain in nature and there has been

insufficient exploration to define these Inferred Resources as Indicated or Measured. However, it is reasonably expected

that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Reso urces with continued

exploration.

3. A cut-off grade of 0. 10% Ni was used to define potentially economic material for inclusion within the MRE. Cut-offs

were determined on the basis of core assay geostatistics and drill core lithologies for the deposit, and by comparison

to analogous nickel deposit types.

4. Geological and block models for the MRE used data from a total of xx surface drill holes, completed by C anada Nickel

in 2023 and 2024. The drill hole database was validated prior to resource estimation and QA/QC checks were made

using industry-standard control charts for blanks, core duplicates and commercial certified reference material inserted

into assay batches by Canada Nickel and by comparison of umpire assays performed at a second laboratory.

5. Estimates have been rounded to two significant figures.

6. The MRE was prepared following the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines

(November 29, 2019) and the CIM Definition Standards for Mineral Resources & Mineral Reserves (May 19, 2014).

7. The geological model as applied to the MRE comprises two mineralized domains hosted by variably serpentinized

ultramafic rocks: a higher-grade core (dunite), and a lower grade halo (transitional dunite). Individual wireframes were

created for each domain in Leapfrog Geo 2025.1 software.

8. A 20 m x 20 m x 15 m block model was created, and samples were composited at 7.5 m intervals. Grade estimation

from drill hole data was carried out for Ni, Co, Fe, Cr, S, Pd and Pt using the Ordinary Kriging interpolation method in

Isatis 2024.12 software.

9. The MRE has been constrained by a conceptual pit envelope that was developed using the following optimization

parameters. Metal prices used were US$21,000/t nickel, US$40,000/t cobalt, US$325/t iron, US$3,860/t chromium,

US$1,350/oz palladium, and US$1,150 /oz platinum. Different pit slopes were used for each layer (in degrees): 9.5 in

clay, 11.3 in sand & till, and 45.0 in rock. Exchange rate utilized was C$ = US$0.76. Mining costs utilized different values

for overburden (clay, gravel), and rock mining, ranging from C$1.82 to C$4.61/t mined. Material at Bannockburn would

be treated in a 120 ktpd operation (similar to the ultimate scope of Crawford). Ore Transportation, Processing and G&A

costs for such an operation have been estimated at C$13.50/t. Based on the range of grade and ratio of sulphur to

nickel, calculated recovery averages 49% for Ni, 10% for Co, 55% for Fe, 28% for Cr, 41% for Pd and 16% for Pd.

10. Grade estimation was validated by comparison of input and output statistics (Nearest Neighbour and Inverse Distance

Squared methods), swath plot analysis, cross -plots of declustered samples against the nearest OK estimate, and by

visual inspection of the assay data, block model, and grade shells in cross-sections.

11. Density estimation was carried out for the mineralized domains using the Ordinary Kriging interpolation method, based

on 454 specific gravity measurements collected during the core logging process, using the same block model parameters

of the grade estimation. As a reference, the average estimated density value within dunite is 2.55 g/cm3 (t/m3), while

the transitional dunite domain yielded an average of 2.61 g/cm3 (t/m3).

Figure 4. Plan View of Bannockburn Resources, Bannockburn Nickel Sulphide Project, Ontario.

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