EVNI.V · 2025-05-05 12:00:00

EV NICKEL REPORTS CARLANG A PEA: ROBUST ECONOMICS FOR LARGE SCALE NICKEL PROJECT •Pre-Tax NPV(8%) of $1.91 Billion •Post-Tax NPV(8%) of $1.48 Billion •Net C1 Cash Costs of US$4.36/lb Ni and Net AISC of US$4.87/lb Ni after by-product credits

Economic Studies

May 5, 2025 TSX-V: EVNI

EV NICKEL REPORTS CARLANG A PEA: ROBUST ECONOMICS FOR

LARGE SCALE NICKEL PROJECT

•Pre-Tax NPV(8%) of $1.91 Billion

•Post-Tax NPV(8%) of $1.48 Billion

•Net C1 Cash Costs of US$4.36/lb Ni and Net AISC of US$4.87/lb Ni after by-product credits

•Producing 1.6B lbs of payable Ni over 20 year mine life

•Annual EBITDA of C$681 Million and Annual Free Cash of C$313 Million

(All amounts in Canadian Dollars unless otherwise indicated)

TORONTO, ON–EV NICKEL INC.(TSX-V: EVNI) (“EVNi” or the “Companyis pleased to report the results of a Preliminary

Economic Assessment (“PEA”) on its 100% ownedCarLang A NickelProject (the “Project”), located approximately30

kilometres southeast of Timmins, Ontario. The PEA was prepared by SRK Consulting (Canada) Inc.(“SRK”)and Caracle

CreekInternational Consulting Inc. (“CCIC”).The updated PEA used a pit constrained Measured resource of 1,007 million

tonnes (“Mt”) grading0.24% Ni, consisting of Indicated resource of 510 Mt grading 0.25% Ni and an Inferred mineral

resource of 497 Mt grading 0.23% Ni and was initially modeled with a 20-year mine life and 120,000 tonnes mined per

day.

“This PEAStudy demonstrates the excellent potential of the large scale CarLang A Nickel Project as a near surface,

moderatecapex production asset,” saidJohn Paterson, Interim President and CEO of EV Nickel. “The shallow overburden

cover and low strip ratio significantly reduces the overall Capex of the CarLang A project and allows for a rapid ramp-up

of production to meet the 120,000 tonnes per day mill design. We are excited by these results and continue to move

forward, advancing the permitting and optimizing the mine design and processing facilities. EV Nickel continues to execute

our Strategic Plan, de-risking the large scale CarLang A Nickel Project while continuing to explore for additional high-

quality, large-scale nickel deposits along the CarLang Trend and throughout the Shaw Dome Project area.”

“The CarLang A Nickel Deposit demonstrates the potential of the CarLang Trend to host large-scale zones of mineralization

suitable for advancement towards a production decision with significant expansion potential,” saidPaul Davis, Vice

President Exploration of EV Nickel. “When combined with our successful, ongoing exploration program, including the

Gemini North Sulphide Nickel Zone, the CarLang Trend has the potential to expand into a significant area of multiple large-

scale zones of nickel mineralization with similar, or better, nickel grades and recovery characteristics as the CarLang A

Deposit. If the Company continues to be successful in defining additional zones of nickel mineralization within the CarLang

Trend, then work can begin to determine the best sequencing of the area and realize the benefits of multiple zones

allowing for the optimization project development and the tailings storage schedules, to extract the best zones early on,

to maximize the potential project economics in the area, while limiting the overall environmental impacts. The CarLang

Trend potentially represents an area that could host large-scale nickel zones that would continue for multiple decades

within a contiguous, well-defined area that could feed a single processing facility, just south of Timmins, Ontario.”

A Technical Report in support of the PEA will be filed on SEDAR (www.sedar.com) within 45 days of the date of this news

release. The PEA is effective as of March 24, 2025.

CarLang A 2025 PEA Summary

•Strong Economics (based on long term price and exchange rate assumptions)

o$1.91 Billion Pre-Tax NPV(8%), 15% IRR

o$1.48 Billion After-Tax NPV(8%), 14% IRR

•Large Scale, Low Cost Project

oAverage annual production of 83 million pounds of nickel, 615 million tonnes of iron and 36.7 million

pounds of chrome and 31 thousand pounds of cobalt

oBy-product credits associated with iron, chrome and cobalt

oLife of Mine C1 Cash Costs of US$4.36/lb Ni; Net AISC Costs of US$4.87/lb nickel net of by-product credits

(based on long term price and exchange rate assumptions)

o20 year mine life totalling 753,000 tonnes of nickel

oLow strip ratio of 0.38 reflective of thin overburden cover averaging 3 metres over the proposed open pit

•Robust Project Economics

o$681 Million of annual EBITDA

o$360 Million of annual Free Cash Flow over the 20 years of production

A PEA is preliminary in nature and includes inferred mineral resources that are considered too geologically speculative to

have economic considerations applied that would allow them to be categorized as mineral reserves whereby there is no

certainty that the results of the PEA will be realized.

The key project metrics are summarized in Table 1 and Table 2.

Table 1: Life of Mine Physicals

Item Units Value

Physicals(Mill Feed)

Mill Feed Mt 840

Ni Feed Grade % 0.23

Co Feed Grade % 0.01

Cr Feed Grade % 0.23

Fe Feed Grade % 5.33

S Feed Grade % 0.06

MgO Feed Grade % 37.0

S/Ni Feed Ratio 0.25

Ni Concentrate

Ni Recovery % 14.6

Co Recovery % 2.2

Ni Concentrate Grade % 25.0

Co Concentrate Grade % 0.17

Ni Concentrate Mt 1,147

FeCr Concentrate

Fe Recovery % 55.0

Cr Recovery % 26.3

Ni Recovery % 26.2

Fe Concentrate Grade % 48.0

Cr Concentrate Grade % 1.0

Ni Concentrate Grade % 1.0

FeCr Concentrate Mt 51,287

Salable Metal Total Recovery

Ni Recovery % 40.8

Co Recovery % 2.2

Cr Recovery % 26.3

Fe Recovery % 55.0

Source: SRK 2025

Table 2: Economic Analysis Summary

Item Units Value (C$) Value (US$)

Payable Ni Mlbs 1,603 1,603

Net Smelter Return $/t-milled 27.93 19.55

Site OperatingCosts $/t-milled 11.69 8.19

Net C1 Costs $/lb Ni-Eq 6.22 4.36

EBITDA $/t-milled 16.24 11.37

Total Capital $M 4,805 3,363

Initial Capital $M 3,317 2,322

SustainingCapital $M 1,487 1,041

Net AISC $/lb Ni-Eq 6.96 4.87

Pre-Tax NPV 0% $M 8,830 6,181

Pre-Tax NPV 8% $M 1,917 1,342

Post-Tax IRR % 15 15

Post-Tax NPV 0% $M 7,201 5,041

Post-Tax NPV 8% $M 1,480 1,036

Post-Tax IRR % 14 14

Payback (from Project Start) Yrs 9 9

Payback (from Production) Yrs 6 6

Source: SRK 2025

The key assumptions used in the economic analysis are shown inError! Reference source not found.3.

Table 3: Economic Analysis Assumptions

Assumption Units Value

Ni Price US$/t 20,000

Co Price US$/t 40,000

Fe Price US$/dmt162

Cr Price US$/lb 1.75

Exchange Rate US$:C$ 0.70

Fuel Price C$/L 1.20

Electricity Cost C$/kWh 0.75

Royalty % -

Source: SRK 2025

Project Opportunities

Significant potential related to a number of opportunities associated with the CarLang A Project for additional value have

been identified including:

•Additional near surface exploration potential along the 10 kilometres of strike length associated with the CarLang

Trend.

•Potential for higher grade nickel and sulphur zones within the CarLang Trend that could represents areas with

significantly improved recovery characteristics including the recently identified Gemini North Zone located

approximately 2.5 kilometres to the north of the CarLang A Deposit along the CarLang Trend.

•Optimized processing of nickel concentrates to recover platinum group metals.

•Capital cost reductions associated with mine scheduling and Tailings storage options.

•Inclusion of Carbon Credits into the economic model related to the Carbon Capture Storage potential of the mine

tailings and Carbon Footprint reductions with the incorporation of low-carbon, electric mining equipment.

•Application of the Company’s bioleaching process to the nickel concentrates with the potential to reduce smelting

and refining costs and produce products directly for the electric battery market producers.

Project Overview

The CarLang A Project is designed as a conventional open pit mine/mill operation utilizing traditional mining and milling

equipment. The project will develop two products including a high-grade nickel concentrate estimated at 25% nickel and

a magnetite concentrate estimated at 48% iron and 1% chromium. Both of the products are assumed to be sold based on

the nickel, iron, chromite and cobalt content of the concentrates.

The process plant will utilize a conventional milling operation consisting of crushing, grinding, desliming and flotation

operations similar to other ultramafic hosted nickel operations. The processing plant will be constructed at a full capacity

of 120,000 tonnes per day from the initiation of production.

Location and Infrastructure

The CarLang Nickel Property, within National Topographic System (“NTS”) 1:50 000 map sheets 042A/06 (Timmins) and

042A/07 (Watabeag River), is situated in portions of Carman, Langmuir, and Shaw townships, Porcupine Mining Division,

northeastern Ontario, Canada. The centre of the Property is approximately 30 km southeast of the City of Timmins.

The Property is accessed by motor vehicle via Tisdale Street (Forks River Road), which originates in South Porcupine

(Timmins), travelling for about 15 km southward, after 15 km taking the left logging road diversion (Langmuir Road). Rail

access is located nearby.

Regional 3-phase power lines extend south of Timmins following Forks River Road and supplying power to the Redstone

Mill Facility and previously to the Carshaw Mill Site, 5 km west and 4 km northwest of the CarLang A Zone, respectively. A

500 kV transmission line runs along the western boundary of the Property to Timmins, about 18 km west of the CarLang

A Zone Deposit. The project envisions that a 230 kV powerline will be constructed from Hydro One Porcupine Substation

to the site, then step down the voltage as required to feed the various electricity consumers.

The other infrastructure to be developed for the project includes on site haul and service roads, water and power supply,

mine waste rock and tailings storage facilities (TSF), processing facilities and site buildings.

Mining Method

The CarLang A deposit is expected to be mined using conventional open pit mining methods using trucks and shovels. The

life of mine (LOM) is 20 years at a mill feed rate of 43.3 million tonnes per annum (Mtpa) and a maximum total material

movement of 72 Mtpa. The mine schedule includes one year of pre-production to generate waste fill for the tailings

management facility. The primary equipment will be 34 m 3 shovels and 229 t haul trucks.

The resource model was regularized to 20x20x15 m, which resulted in 1.7% dilution and 0.1% loss. No additional factors

were applied to the tonnes and grades. A revenue factor of 67% was selected from the pit optimization results as the basis

of the pit design, which resulted in 840 Mt of plant feed at an average grade of 0.23% Ni with a strip ratio of 0.38.

Mineral Processing and Metallurgical Testing

Corem metallurgical laboratory was contracted to perform sample characterization and bench-scale laboratory testwork

on A zone material, with the objective of producing saleable nickel sulphide and magnetite (or ferrochrome) concentrates.

The lab flowsheet and conditions closely followed the results reported in the Canada Nickel Company Crawford technical

reports.

A total of 20 intervals were selected for metallurgical testing from 2022 drilling performed by EVNi. Of the 20 samples, 11

were included in the 2024 testwork program and four were sent for quantitative mineralogical analysis. From the analysis

of these samples, CarLang A zone mineralogy is highly variable in both nickel deportment as well as non-sulphide gangue

that is independent of the consistent assays shown for Ni, Fe, S and MgO. While this also reported for the Crawford project,

the quality of both nickel sulphide and magnetite concentrates may be at the lower end of the range expected from the

Crawford process flowsheet. Continued metallurgical testing on A zone samples will better quantify this.

Limited optimization work was done but based on the testwork completed by Corem on 11 samples from the CarLang A

zone, recoveries to a nickel sulphide concentrate and magnetite concentrate were estimated. These estimates are

preliminary but are suitable for the mine plan completed by SRK. Considering the highly variable nature of the A zone test

samples, further metallurgical testwork is recommended.

Recovery Methods

The CarLang A mineralization will be processed through a single, on-site plant with a design capacity of 120,000 tonnes

per day, producing saleable nickel sulphide and magnetite concentrates.

The plant flowsheet includes crushing, grinding, sulphide flotation and magnetic separation to generate the two

concentrates. Nickel sulphide recovery is done in stages with both coarse and fine flotation following grinding and deslime

removal. Both concentrates are thickened and filtered prior to storage before transport off-site. The plant is based on

average head grades of 0.23% Ni and 5.3% Fe.

Preliminary recoveries have been estimated at 5% to 20% Ni to the sulphide concentrate and 55% Fe and 20% Ni to the

magnetite concentrate. The sulphide concentrate is assumed to be 25% Ni and 0.17% Co as payables with 25% MgO and

27% SiO2 as potential penalty elements. The magnetite concentrate is assumed to be 48% Fe and 1% Cr as payables with

15% MgO, 12% SiO2 and 0.04% S as potential penalty elements.

Capital and Operating Cost Estimate

The capital and operating costs have been estimated based on benchmarks of similar projects and on first principles where

possible. Costs have been estimated to a scoping level of accuracy with capital costs summarized in Table 4 and operating

costs in Table 5.

Table 4: Capital Cost Estimate Summary

Item Unit Initial

Capital

Sustaining

Capital

Total

Capital

Mining1 M$ 56 207 263

Mill2 M$ 2,263 - 2,263

On-Site Infrastructure M$ 166 16 182

Tailings & Water Management M$ 228 1,100 1,329

Closure Costs M$ 11 164 175

Construction Indirects & Owner Costs M$ 425 - 425

Total Project Capital M$ 3,150 1,487 4,637

1 Mine initial capital costs include capitalized pre-production operating costs.

2 Mill sustainingcosts are included in theprocessingoperatingcosts.

Source: SRK 2025

Table 5: Operating Cost Estimate Summary

Item LOM Total

(M$)

Unit Cost

($/t-milled)

Unit Cost

($/t-mined)

Mining1 3,231 3.85 2.85

Processing2 5,726 6.82 6.82

General & Administrative 671 0.80 0.80

Tailings Management 208 0.23 0.23

Total Site OperatingCost 9,818 11.69 10.69

1 Mine operating costs exclude capitalized pre-production operating costs.

2 Processingoperatingcosts include mill sustainingcosts.

Sensitivities

The key project economic indicators (NPV and IRR) are the most sensitive to exchange rate and metal prices, then capital

expenditure, and the least sensitive to operating expenditure, see Figure 1 and Figure 2. The trends of the project

sensitivity are generally in line with a typical greenfield mining project.

Figure 1: CarLang A Project NPV 8% Sensitivity

Figure 2: CarLang A Project IRR Sensitivity

Next Steps

The Company has initiated baseline environmental studies on the CarLang A project and is reviewing the additional study

requirements to advance the project along the permitting process. Ongoing exploration drilling associated with the

Gemini North Zone and other high priority CarLang Trend targets to identify the potential of the CarLang area.

The Technical Report in support of the PEA will be filed under EV Nickel’s profile on SEDAR at www.sedar.com within 45

days of the date of this press release.

-1,000

1,000

2,000

3,000

4,000

5,000

70% 80% 90% 100% 110% 120% 130%

NPV (M$)

Variable Change

CarLang A Project NPV8% Sensitivity

Ni Price Opex Capex FX Rate

10%

15%

20%

25%

70% 80% 90% 100% 110% 120% 130%

IRR

Variable Change

CarLang A Project IRR Sensitivity

Ni Price Opex Capex FX Rate

Mineral Resource Estimate

1. The independent Qualified Person for the Mineral Resource Estimate, as defined by NI 43-101, is Mr. Simon Mortimer,

(FAIG #4083) of Atticus Geoscience Consulting S.A.C., working with Caracle Creek International Consulting Inc. The

effective date of the Mineral Resource Estimate is February 28, 2023.

2. These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and

grade of reported Inferred Resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient

exploration to define these Inferred Resources as Indicated. However, it is reasonably expected that the majority of Inferred

Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

3. The Mineral Resource Estimate was prepared following the CIM Estimation of Mineral Resources & Mineral Reserves Best

Practice Guidelines (November 29, 2019).

4. Mineralized domains were based on lithological contacts. A cut-off grade of 0.25% Ni was used for defining the high grade

domain, which was determined on the basis of core assay geostatistics and drill core lithologies for the deposit.

5. Geological and block models for the Mineral Resource Estimate used data from a total of 28 surface diamond drill holes

(core). 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

EV Nickel Inc.

6. Estimates have been rounded to two significant figures.

7. A cut-off grade of 0.12% NiEq was applied to the resource block model, calculated using the formula NiEq = Ni% + Co% x

2.09, which considers estimated recoveries of 55% for nickel and 40% for cobalt. Iron and sulphur were not considered in the

calculation of NiEq. Iron was estimated to review its potential as a future by-product. Sulphur was estimated to be used in

future metallurgical and mineralogical studies.

8. The mineral resource estimates have been constrained by conceptual pit envelopes using the following optimization

parameters, as provided by EV Nickel Inc. and agreed to by the QP. Metal prices used were (US$) $8.00/lb nickel and

$23.00/lb cobalt. An overall pit slope of 45 degrees was used. Mining and processing costs (US$) were based on

benchmarking from similar deposit types in the area, utilizing a mining cost of $3.50/t, a processing cost of $4.50/t, a G&A

cost of $2.50/t, and a selling cost of $0.80/lb.

9. The geological model comprises two mineralized domains hosted by variably serpentinized ultramafic rocks: a relatively

higher-grade core (largely dunite) and a lower grade envelope (combination of dunite and peridotite). Individual wireframes

were created for each domain.

10. The block model was prepared using Micromine 2020. 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, and S using Ordinary

Kriging (Ni, Co) and Dual Kriging (Fe, S) interpolation methods.

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

methods), swath plot analysis, and by visual inspection of the assay data, block model, and grade shells in cross-sections.

12. Density estimation was carried out for the mineralized domains using the Ordinary Kriging interpolation method, on the basis

of 940 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 the higher-grade is 2.68 g/cm3 (t/m3), while

the lower-grade domain of the resource model yielded 2.77 g/cm3 (t/m3).

About EV Nickel Inc.

EV Nickel’s mission is to provide the world with clean nickel from Tier 1 jurisdictions. Our projects are located within 30

km of Timmins, a developing hub of clean critical minerals for the North American battery and stainless-steel markets, as

Deposit Domain Resource