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CNC.V ·

Canada Nickel Announces $4.38 million Contribution from the Government of Canada

Corporate Updates

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Canada Nickel Announces $4.38 million Contribution from the Government of

Canada

Highlights

• Conditionally approved contribution to support pre-implementation studies for electrical

infrastructure.

• Provided to Canada Nickel under Stream 1 of the Critical Minerals Infrastructure Fund

(CMIF).

• Pre-implementation studies began in April 2024 and are expected to be complete by June

2025.

SUDBURY - October 09, 2024 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company")

(TSXV: CNC) (OTCQX: CNIKF) announced today with the Government of Canada, that it has been

conditionally approved for a C$4.38 million contribution from Natural Resources Canada ’s

Critical Minerals Infrastructure Fund (CMIF).

The contribution is in support of t he Company’s ongoing studies (“Studies”) to undertake pre-

construction and project development activities at the Company’s flagship Crawford Nickel

Sulphide Project (“the Project”), primarily focusing on electrical infrastructure. The Studies are a

crucial step for Canada Nickel and the Government of Canada to safeguard the development of

clean energy infrastructure that drives innovation in the mining sector.

"Canada Nickel is grateful for the Government of Canada ’s contribution during this important

phase of the Crawford Nickel Sulphide Project as we complete the engineering and permitting

required to advance our Project towards construction.” said Mark Selby, CEO of Canada Nickel.

“By supporting the se Studies, the federal government is investing the timely development of

sustainable infrastructure to ensure a stable source of critical minerals, foster economic growth,

create over 1500 high-paying jobs, and advance its commitment to net-zero carbon targets when

Crawford is in production."

With successful implementation of the electrical infrastructure and by utilizing Ontario’s clean

electricity grid, the Studies are expected to lead to mining production that will significantly

reduce greenhouse gas emissions by more than 60% compared to diesel -powered operations.

The Crawford Nickel Sulphide Project also includes a permanent carbon storage component,

making it a potential net-zero contributor of CO2 over its lifetime, supporting Canada’s 2050 net-

zero emissions target and environmental commitments.

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“With funding from the Government of Canada, Canada Nickel’s Crawford Nickel Sulphide Project

will help meet growing demand for nickel and position Canada as a reliable supplier of the critical

minerals the world wants to buy. Projects like these build off the Timmins region’s long history

and expertise as miners. Once producing, the mine will create ab out 1,500 jobs and drive

economic growth for the region now and into the future.”

Program Timing & Funding

The Studies are scheduled for completion by June 2025. The Government of Canada’s investment

will cover a portion of the estimated C$9.6 million Studies cost, with Canada Nickel contributing

the remaining C$5.2 million. The contribution is subject to confirmatory due diligence, settlement

of definitive documentation, and other customary conditions.

For more information about Canada Nickel’s initiatives and this project, please

visit www.canadanickel.com.

For further information, please contact:

Mark Selby, CEO

Phone: 647-256-1954

Email: [email protected]

Sydney Oakes, Director of Indigenous Relations and Public Affairs

Phone: 905-929-7151

Email: [email protected]

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

NickelTM, NetZero Cobalt TM, NetZero Iron TM 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 Sulphide Project in the heart of the prolific

Timmins-Cochrane mining camp. For more information, please visit www.canadanickel.com.

About the Critical Minerals Infrastructure Fund

The Critical Minerals Infrastructure Fund (CMIF) will provide up to $1.5 billion in federal funding

over seven years for clean energy and transportation infrastructure projects necessary to enable

the sustainable development and expansion of critical minerals in Canada. Stream 1

(Preconstruction and Project Development) funds preconstruction activities required to advance

projects toward a shovel -ready state, including studies; planning; design work; assessments;

infrastructure-specific consultation; knowle dge sharing; and engagement with Indigenous

communities and organizations, as well as other impacted communities.

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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, the construction of processing facilities (and the timing thereof),

the ability of the Company to deliver nickel required to feed the high growth electric vehicle and

stainless-steel markets, the efficacy of the Canada Nickel’s IPT Carbonation process, and the

development of processes to allow the prod uction of net zero carbon nickel, cobalt, and iron

products. Readers should not place undue reliance on forward looking statements. Forward -

looking statements involve known and unknown risks, uncertainties and other factors which may

cause the actual results, performance or achievements of Canada Nickel to be materially different

from any future results, performance or achievements expressed or implied by the forward -

looking statements. There are no assurances that Crawford will be placed into production.

Factors that could affect the outcome include, among others: inability to repay the loan or comply

with the covenants set out in the loan agreement; the actual results of development activities;

project delays; inability to raise the funds necessary to complete development; general business,

economic, competitive, political and social uncertainties; future prices of metals or project costs

could differ substantially and make any commercialization uneconomic; availability of alternative

nickel sources or subs titutes; actual nickel recovery; conclusions of economic evaluations;

changes in applicable laws; changes in project parameters as plans continue to be refined;

accidents, labour disputes, the availability and productivity of skilled labour and other risks of the

mining industry; political instability, terrorism, insurrection or war; delays in obtaining

governmental approvals, necessary permitting or in the completion of development or

construction activities; mineral resource estimates relating to Crawford could prove to be

inaccurate for any reason whatsoever; additional but currently unforeseen work may be required

to advance to the feasibility stage; and even if Crawford goes into production, there is no

assurance that operations will be profitable. Alth ough Canada Nickel has attempted to identify

important factors that could cause actual actions, events or results to differ materially from those

described in forward-looking statements, there may be other factors that cause actions, events

or results to d iffer from those anticipated, estimated or intended. Forward -looking statements

contained herein are made as of the date of this news release and Canada Nickel disclaims any

obligation to update any forward-looking statements, whether as a result of new information,

future events or results or otherwise, except as required by applicable securities laws. 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.