Canada Nickel and NetCarb Advance Strategic Partnership to Unlock Zero Carbon Industrial Cluster in Northeastern Ontario
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Canada Nickel and NetCarb Advance Strategic Partnership
to Unlock Zero Carbon Industrial Cluster in Northeastern Ontario
Highlights
• Unlocking additional value from carbon sequestration and mineral by-products from Crawford
Nickel Project tailings
• Enabling multiple low-carbon industries: blue-green hydrogen, ammonia, urea fertilizer, and
magnesium products
• Supporting Ontario and Eastern Canada’s self-sufficiency in fertilizers and magnesium
• Advancing local clean energy and megatonne carbon removal using regional biomass
TORONTO, October 2 2, 2025 – Canada Nickel Company Inc. ("Canada Nickel " or the " Company")
(TSXV:CNC) (OTCQX:CNIKF) is pleased to announce the next phase of its strategic partnership with
NetCarb, outlining new product opportunities and a path forward for unlocking the potential for a zero
carbon industrial cluster in Northeastern Ontario. This collaboration leverages NetCarb’s advanced carbon
sequestration process which can utilize tailings from the Crawford Nickel project and the Company’s other
projects across the Timmins Nickel District to capture and store carbon dioxide while producing valuable
by-products.
Mark Selby, CEO of Canada Nickel, said, “This next phase of collaboration with NetCarb is a pivotal step
forward in our strategic partnership. We have completed an initial assessment of high potential products
which leverage the minerals in our tailings, the inherent strengths of Northeast Ontario and each of our
proprietary technologies to identify potential anchor industries for a Northeast Ontario zero carbon
industrial cluster. As we did with our initial development of our patented IPT Carbonation pro cess, we
will rapidly assess the technical and economic viability of each opportunity , leveraging available
government funding to take each opportunity through each stage from lab scale to pilot scale to full
feasibility. This approach will enable the Company to identify and attract potential partners to advance
each of these opportunities as the Company continues to focus on advancing its flagship Crawford
project.”
Since announcing a strategic partnership on June 9, 2025, Canada Nickel and NetCarb have made progress
in understanding how the NetCarb proprietary carbon sequestration process can create value from
Crawford tailings. We believe that this technology has the potential to sequester up to ten times the
amount of CO 2 that Canada Nickel’s proprietary IPT Carbonation can achieve, while also generating by-
products such as hydrogen and magnesium.
Dr. Luke Keeney, Managing Director and CEO of NetCarb said, “NetCarb’s enhanced carbon sequestration
technology could significantly extend the value of Canada Nickel’s tailings, positioning the Timmins Nickel
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District as a leading decarbonisation hub in Eastern Canada and unlocking new industries and economic
opportunities for the region.”
Through lab, pilot and engineering activities, Canada Nickel and NetCarb will pursue the demonstration
of the cutting -edge process through a rapid development program that focusses on three highly
prospective by-product focus areas in addition to utilizing the enhanced carbon sequestration capacity.
Blue-green Hydrogen and hydrogen based products (Ammonia, Urea, Ammonium Nitrate)
The NetCarb process offers the potential to produce a carbon neutral hydrogen product using a steam
methane reforming (SMR) process that sequesters the carbon dioxide generated in the tailings. This
approach, which combines attributes of both blue and green hydrogen, represents a new category of low-
carbon hydrogen production. Hydrogen is a valuable product on its own, however it is also a key ingredient
for the production of other materials such as urea or ammonia and valuable products for Ontario:
• Hydrogen has potential as a zero emission fuel that could be supplied to the nearby natural gas
pipeline to lower the carbon footprint of the natural gas energy supply. The ability to produce
power using a natural gas that contains hydrogen has been the focus of significant research and
development through existing government hydrogen innovation funds.
• Ammonia is typically used to make nitrogen-based fertilisers and explosives, it also has a potential
application for assisting in the transportation of hydrogen as a fuel. Through further processing,
the hydrogen produced from the NetCarb process could be readily converted into ammonia using
established industrial processes.
• Urea is a fertilizer used in agriculture to enhance the nitrogen content of soils. It is typically
produced from ammonia combined with CO2 and is currently a net import to Eastern Canada. As
a potential byproduct of the NetCarb process, urea production could improve regional self -
sufficiency in fertilizers.
The joint development program will focus on three main areas: blue -green hydrogen and low -carbon
fertilizers, magnesium-based products, and enhanced carbon removal using local biomass. Canada Nickel
and NetCarb will continue to advance these initiatives through laboratory, pilot, and engineering phases,
with the goal of establishing Northeastern Ontario as a model for zero carbon industrial development.
Given the extensive ultramafic resources in the Timmins Nickel District, there is potential to generate high-
value by -products. NetCarb estimates that each tonne of Crawford tailings has the potential to store
approximately 300 kg of carbon dioxide while producing 55 kg of hydrogen which could be further utilized
to produce 310 kg ammonia or 545 kg of urea.
Magnesium-based products and potential for distributed carbon capture support
In addition to the hydrogen production, NetCarb’s technology generates a magnesium material which can
be processed into products such as magnesium carbonate ( MgCO3) or magnesium oxide ( MgO). The
potential to produce MgO, which is a product that is highly reactive with CO 2, is particularly exciting as
this material could effectively be distributed as a CO 2 scrubbing agent to businesses across Eastern
Canada. By leveraging the provincial road and rail network, MgO produced from Crawford tailings can be
transported and deployed beyond Timmins, extending the reach of the region’s carbon sequestration
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capabilities. Each tonne of Crawford tailings has the potential to generate 270 kg of low carbon, or carbon
neutral MgO utilizing NetCarb’s process.
Figure 1: Hydrogen and Magnesium Products Generated per 1 tonne and annual volume of Crawford
tailings
Local Biomass Energy and Biofuel Production, and Megatonne Carbon Removal
Northeast Ontario possesses significant biomass harvesting capacity , much of which has been
underutilized over the last two decades as traditional pulp, paper, and forestry products capacity has been
closed. Canada Nickel is already actively exploring the use of local biomass to use as a reductant to
decrease the carbon footprint of its downstream processing facilities.
The NetCarb-Canada Nickel partnership has identified opportunit ies to utilize primary forestry biomass
and forestry and agricultural waste to produce biofuels or generate energy. By capturing and sequestering
the CO2 generated using Crawford tailings and the NetCarb process, the process has the potential to be
net carbon negative and achieve annual megatonne carbon removal while generating byproducts from
multiple sources of waste. Figure 2 illustrates the approaches for biofuel and biomass power generation.
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Figure 2a: Bio-ethanol production utilizing forest biomass with carbon sequestered from 1 tonne and
annual volume of Crawford tailings
Figure 2b: 50MW power generation from forest and agricultural biomass co with carbon sequestration
What is Blue-Green Hydrogen
Hydrogen is classified by colour, based on the source of the hydrogen and what happens to the carbon
dioxide generated. The potential hydrogen by-product from the NetCarb process shares characteristics of
both blue and green hydrogens:
• Blue hydrogen is produced from natural gas through steam reforming, where the resulting carbon
dioxide (CO 2) by -product is captured and stored using carbon capture and storage (CCS)
technologies.
• Green hydrogen is produced through electrolysis using renewable energy sources, such as wind
or solar power, producing hydrogen without greenhouse gas emissions.
The NetCarb process enables use of lower cost hydrogen production through steam methane reforming,
while CO 2 emissions are mineralized and sequestered in the tailings residue. This approach results in a
carbon-neutral hydrogen product with CO2 permanently stored in a geologically stable mineral form.
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NetCarb Proprietary process
Unlike Canada Nickel's IPT Carbonation process, which focuses solely on brucite, the NetCarb technology
targets a more complete carbonation of serpentine minerals. This proprietary process involves
serpentinite activation followed by hydrometallurgical processing of ore through a CO 2 activity swing
reactor that effectively dissolves and re -precipitates magnesium as solid carbonate minerals for
permanent carbon dioxide sequestration. We believe that the NetCarb process has the potential to
sequester up to ten times the amount of carbon dioxide that can be achieved with IPT Carbonation and
represents a significant leap forward in carbon capture technology.
Next Steps
Canada Nickel and NetCarb will be submitting a series of funding proposals to various gra nting agencies
through the balance of 2025 with a view to completing lab scale work on targeted processes during 2026.
Successfully developed processes will pave the way for identifying potential strategic partners to support
pilot-scale demonstrations in 2027, with the goal of advancing each process toward full
commercialization.
Qualified Person
Arthur G. Stokreef, P.Eng (ON), Manager of Process Engineering & Geometallurgy and a "qualified
person" as such term is defined by National Instrument 43-101, has reviewed and approved the
technical information in this news release on behalf of Canada Nickel Company Inc.
About NetCarb
NetCarb Pty Ltd is accelerating the global shift to a low-carbon economy with advanced technologies that
help businesses reduce emissions and meet their net zero commitments. Through cross -industry
collaboration, NetCarb supports the scale -up of sustainabl e solutions, improves operational efficiency,
and brings innovative, eco -friendly products to market—aligning environmental responsibility with long
term economic value. At the core of NetCarb’s innovation is its breakthrough in carbon mineralisation, a
natural process where atmospheric CO₂ reacts with rock to form stable carbonates. While this process
typically occurs over geological timescales and removes around 0.3 billion tonnes of CO₂ annually,
NetCarb’s technology accelerates it by approximately 100 m illion times. This advancement enables
scalable, permanent carbon storage at economically viable rates, positioning NetCarb as a key player in
the multi-gigaton carbon capture market. To learn more, visit https://netcarb.com.au.
About Canada Nickel Company
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 Nickel TM, NetZero Cobalt TM, 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 politi cal 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.
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Media, please contact:
Sydney Oakes
Director of Indigenous Relations and Public Affairs
For further information, please contact:
Mark Selby
CEO
Phone: 647-256-1954
Email: [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. Forward looking information includes, but is not limited to,
whether the technology has the potential to sequester up to ten times the amount of CO2 that Canada
Nickel’s proprietary IPT Carbonation can achieve, while also generating valuable by -products such as
hydrogen and magnesium; new product opportunities and a path forward for unlocking the potential for
a zero carbon industrial cluster in Northeastern Ontario; the potential to produce a carbon neutral
hydrogen product using a steam methane reforming (SMR) process that sequesters the carbon dioxide
generated in the tailings; opportunities to utilize prima ry forestry biomass and forestry and agricultural
waste to produce biofuels or generate energy ; whether successfully developed processes will pave the
way for identifying potential strategic partners to support pilot -scale demonstrations in 2027, and the
goal of advancing each process toward full commercialization, whether the process is technically or
economically viable and the availability of governing funding. Forward-looking information is necessarily
based upon several 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,
the results of drilling, inability to raise the money necessary to incur the expenditures required to retain
and advance the property, environmenta l 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, failure to obtain regulatory or shar eholder
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 f orward-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 because of new
information, future events or otherwise, except as required by law.