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Canada Nickel is Awarded $500,000 from Ontario’s Critical Minerals Innovation Fund to Advance NetZero Metals Inc.

Corporate Updates

Canada Nickel is Awarded $500,000 from Ontario’s

Critical Minerals Innovation Fund to Advance NetZero Metals Inc.

TORONTO, January 15, 2025 - Canada Nickel Company Inc. (“Canada Nickel” or the “Company”)

(TSXV: CNC) (OTCQX: CNIKF) is pleased to announce that it has been awarded $500,000 from the

Government of Ontario’s Critical Minerals Innovation Fund (“CMIF”) to support the development

of its nickel processing facility (“the Project”) through its wholly owned subsidiary, NetZero Metals

Inc. This commitment reinforces Ontario’s commitment to building a sustainable and reliable

battery metal supply chain while reducing carbon emissions and fostering innovation in critical

minerals processing.

The Project, expected to be located near Canada Nickel’s flagship Crawford Nickel Sulphide

Project (“Crawford”) close to Timmins, Ontario, aims to develop and validate a process flowsheet

for converting Crawford’s nickel concentrate and third -party feeds into nickel and nickel -cobalt

products essential for battery plants in southern Ontario. Leveraging cutting-edge technology, the

proposed facility will utilize biochar, a locally sourced, renewable reductant, to re place

conventional coal -based materials suc h as coke and anthracite, thereby minimizing carbon

intensity. Once operational, the plant is expected to produce over 75,000 tonnes of nickel

annually when fully ramped up , marking a significant step forward for nickel ’s domestic supply

chain.

Mark Selby, CEO of Canada Nickel, expressed his gratitude for the Government of Ontario’s

support, “This commitment highlights the province’s leadership in fostering innovation and

advancing clean technology solutions. By supporting our efforts to develop a low-cost, low-carbon

nickel processing facility, Ontario is strengthening the foundation for a sustainable battery metal

supply chain that will drive economic growth and contribute to the global energy transition.”

Canada Nickel is collaborating with industry leaders, such as Kingston Process Metallurgy, to

advance the design and testing of this innovative processing technology. The funding from CMIF

will play a crucial role in validating the process design through lab and pilot -scale metallurgical

testing using representative feed samples and Ontario-produced biochar.

Mike Cox, CEO of NetZero Metals, emphasized the transformative potential of the project , “The

NetZero Metals Inc. facility represents a first -of-its-kind approach in the Western world to use

biochar-based reductants in pyrometallurgical nickel processing. This innovation not only

addresses the growing demand for low -carbon battery metals but also reinforces Ontario’s

position as a leader in clean and sustainable resource development.”

“As our economy grows with an increased need for critical minerals, our government is

strengthening a made-in-Ontario supply chain, ready to fuel the technologies of tomorrow,” said

George Pirie, Minister of Mines. “Companies like Canada Nickel, and others working on Critical

Minerals Innovation Fund projects showcase our province’s unique talent and potential to build

a competitive critical minerals industry.”

Together with the Government of Ontario , Canada Nickel and NetZero Metals Inc. are driving

innovation and creating a more sustainable future for the province and beyond.

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 trademar k 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 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 NetZero Metals Inc.

Canada Nickel has launched wholly -owned NetZero Metals Inc. to develop zero -carbon

production of Nickel, Cobalt and Iron and holds trademarks for NetZero NickelTM, NetZero

CobaltTM and NetZero IronTM across several jurisdictions . Over three phases, the nickel

processing plant is expected to reach a capacity of more than 80,000 tonnes of nickel annually,

which is expected to make it the largest nickel processing facility in North America. Subject to

permitting approvals, the plant plans to begin production by the start of 2027 utilizing third party

feeds. The facility is expected to be further expanded with the startup and expansion of Canada

Nickel’s Crawford Nickel Sulphide P roject. This plant is expected to utilize proven, low

environmental footprint technology to produce high -quality nickel products, catering to the

needs of both the stainless -steel/superalloy and the electric vehicle markets. For more

information, please visit www.canadanickel.com/#netzero

About the Critical Minerals Innovation Fund

The Critical Minerals Innovation Fund (CMIF) provides funding to projects that help strengthen

Ontario’s critical minerals sector. The CMIF supports projects that involve research,

development and commercialization of innovative technologies, techniques, processes and

solutions for critical minerals and relate to Ontario’s key priority areas. For more information,

please visit https://www.ontario.ca/page/critical-minerals-innovation-fund#section-0

Media, please contact:

Melanie Paradis

Phone: 416-399-7400

Email: [email protected]

Sydney Oakes, Director of Indigenous Relations and Public Affairs

Phone: 905-929-7151

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, the construction of processing facilities, the ability of the Company to deliver nickel

required to feed the high growth electric vehicle and stainless -steel markets, and the

development of processes to allow the production 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 f uture 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 loa n 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 substitutes; actual nickel recovery; conclusions of economic evaluations;

changes in appli cable 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. Although 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 differ 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.