First Atlantic Highlights U.s. Dominance Act Passed BY House: New Critical Minerals Bill Authorizes Equity Investment, Co -Financing, and U.s. -Priority Offtake FOR Allied Projects and Defines "Processed" as "a Metal, Metal
FIRST ATLANTIC HIGHLIGHTS U.S. DOMINANCE ACT PASSED BY HOUSE: NEW CRITICAL
MINERALS BILL AUTHORIZES EQUITY INVESTMENT, CO -FINANCING, AND U.S. -PRIORITY
OFFTAKE FOR ALLIED PROJECTS AND DEFINES "PROCESSED" AS "A METAL, METAL
POWDER, OR A MASTER ALLOY" - AWARUITE IS A NATURAL NICKEL-IRON-COBALT ALLOY
ALREADY IN THE FORM THE ACT DEFINES AS "PROCESSED"
GRAND FALLS-WINDSOR, Newfoundland and Labrador, June 11, 2026 - First Atlantic Nickel &
Cobalt Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") today
commented on the passage by the U.S. House of Representatives of H.R. 7037, the Developing
Overseas Mineral Investments and New Allied Networks for Critical Energies Act , also known as the
DOMINANCE Act1. The bill passed the House on June 8, 2026. The bipartisan legislation is intended to
strengthen U.S. energy security, reduce reliance on the People's Republic of China for critical minerals,
and support more resilient supply chains with trusted allies and partners.
The DOMINANCE Act is designed to support greater U.S. cooperation with allied and partner countries,
mobilize strategic investment in energy and mineral projects, and strengthen the diplomatic and
institutional capacity required to secure diversified critical mineral supply chains. The Company believes
the legislation highlights the growing strategic importance of North American and allied sources of nickel,
cobalt and other critical minerals required for defence, advanced manufacturing, stainless steel, battery
and clean t echnology supply chains. Of the minerals designated as critical by the United States
Geological Survey, nickel is the only one that appears by name in the DOMINANCE Act. The Act
dedicates a standalone section to nickel, authorizing United States membership in the International
Nickel Study Group, the intergovernmental body through which nickel-producing and nickel-consuming
countries, including Canada, coordinate on the global nickel market.
First Atlantic's wholly owned Pipestone XL Nickel -Cobalt Alloy Project in Newfoundland is being
advanced as a potential allied source of awaruite, a naturally occurring nickel -iron-cobalt alloy (Ni-Fe-
Co). On May 21, 2026, the Company announced electron microprobe analysis confirming that awaruite
at the RPM Zone of the Pipestone XL Project averages 77.62% nickel and 1.69% cobalt. Awaruite's
metallic, sulphur -free composition may provide a differentiated processing pathway by enabling
concentration through magnetic separation and flotation without the need for conventional smelting,
roasting or high-pressure acid leaching. The Company believes this characteristic is particularly relevant
to current North American supply chain challenges, where midstream processing capacity remains a
key constraint.
The U.S. Geological Survey identified awaruite as a natural alloy and a potential solution to nickel
concentrate shortages in its 2012 annual report on nickel, stating2:
1 https://www.congress.gov/bill/119th-congress/house-bill/7037/text
2 https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf
"The development of awaruite deposits in other parts of Canada may help alleviate any
prolonged shortage of nickel concentrate. Awaruite, a natural iron- nickel alloy, is much
easier to concentrate than pentlandite, the principal sulfide of nickel."
Key Points
● Pipestone XL Awaruite's Natural Alloy State Already Meets the "Processed" Definition of
the DOMINANCE Act: Section 3(8) of the Act defines a processed critical mineral as ore
converted "into a metal, metal powder, or a master alloy." Awaruite is a naturally occurring metal
alloy of nickel, iron and cobalt - nature has already completed the conversion the statu te
describes as the end point of processing. The Company believes an awaruite concentrate,
produced through magnetic separation and flotation without smelting, could meet this definition
at the concentrate stage.
● Nickel Is the Only Critical Mineral With Its Own Dedicated Section in the Act: Section 103
would authorize U.S. membership in the International Nickel Study Group, the global
intergovernmental nickel body where Canada is already a member, underscoring the priority
placed on nickel supply chains.
● Congressional Findings Identify Processing and Refinement as the Core Vulnerability:
The Act's findings state the United States is heavily dependent on the People's Republic of China
for the processing, and refinement of critical minerals - the midstream smelting step that
awaruite's magnetic-separation pathway is designed to bypass.
● Act Authorizes Equity Investment, Political Risk Insurance, Co-Financing and U.S.-Priority
Offtake for Allied Projects: The Minerals Security Partnership ("MSP") provisions cover joint
projects for "commercial and military use," with funding tools including cost-sharing agreements,
political risk insurance, equity investments, and co-financing through the MSP Finance Network,
catalyzed by private investment and commercial offtake "with priority to the United States."
Canada is a founding MSP member.3
On June 9, 2026, the Company released its new white paper, Onshoring the Nickel-Cobalt Supply
Chain. Without a Smelter. For investor inquiries or questions, please call Rob Guzman, Investor
Relations, at +1-844-592-6337 or email [email protected].
Congressional Findings Identify Processing and Refinement as the Core Vulnerability
The DOMINANCE Act highlights congressional findings on U.S. critical mineral dependence. Section
2(a) of the Act states:
"(1) the United States is heavily dependent on the People's Republic of China for the
production, processing, and refinement of many key critical minerals and materials;
3 https://2021-2025.state.gov/minerals-security-partnership/
(2) the Government of the People's Republic of China has weaponized its dominance of
critical mineral production and has intentionally created overcapacity and sold products at
below-market rates in order to gain market share and move up the value chain."
The findings further state:
"(4) a reliable, resilient, and diversified supply chain for energy and critical minerals is
essential to meet the defense, manufacturing, technological, and energy needs of the
United States."
The vulnerability identified by Congress is concentrated in processing and refinement - the midstream
smelting infrastructure. Awaruite's magnetic-separation pathway removes that step entirely; an awaruite
concentrate doesn’t require smelting or other secondary midstream processes prior to downstream
manufacturing.
DOMINANCE Act Defines "Processed" Critical Minerals as Ending at "a Metal, Metal Powder, or
a Master Alloy"
The Company also notes the definitions section of the DOMINANCE Act. Section 3(8) of the Act states:
"(8) The term “processed”, with respect to a critical mineral, means the mineral has
undergone the activities that occur after critical mineral ore is extracted from a mine up
through its conversion into a metal, metal powder, or a master alloy."
Awaruite is a naturally occurring nickel -iron-cobalt alloy that already exists in metallic form. Because
concentration through magnetic separation and flotation upgrades awaruite ore directly into a high-grade
metallic alloy concentrate without smelting, r oasting or high- pressure acid leaching, the Company
believes an awaruite concentrate meets this definition of a processed critical mineral which the
Company believes is directly relevant to U.S. and allied efforts to expand midstream processing capacity
outside the People's Republic of China.
Nickel Is the Only Critical Mineral With Its Own Dedicated Section in the Act
The DOMINANCE Act also signals a specific policy focus on nickel. Section 103 of the legislation would
authorize the President to accept the Terms of Reference of, and maintain membership of the United
States in, the International Nickel Study Group (INSG), with U.S. assessed contributions authorized to
be paid for fiscal year 2026 and each fiscal year thereafter. The INSG is an intergovernmental
organization that brings together nickel -producing and nickel -consuming countries to exchange
information and improve transparency in the global nickel market. The Company believes that formal
U.S. membership in the INSG would underscore the strategic importance placed on nickel supply chains
and on closer coordination with allied nickel-producing jurisdictions, including Canada.
Act Directs Allied Supply Chain Cooperation, Explicitly Including Processing
Section 101(a) of the Act sets out the statement of policy of the United States:
"(1) to collaborate with allies and partners of the United States to build secure and resilient
critical mineral supply chains, including in the mining, processing, reclamation and
recycling, and valuation of critical minerals.
(3) to reduce or eliminate reliance on critical mineral supply chains controlled by the
People's Republic of China, the Russian Federation, Iran, or any other strategic
competitor to the United States."
The Act's definition of "ally or allied country" covers countries described in section 2350a(a)(2) of title
10, United States Code, which includes NATO members. Canada is a NATO member and a founding
member of the Minerals Security Partnership.
Statutory Funding Tools: Equity Investment, Political Risk Insurance, Co- Financing, and U.S. -
Priority Offtake
Section 102(a) of H.R. 7037, the Developing Overseas Mineral Investments and New Allied Networks
for Critical Energies Act, or DOMINANCE Act, would authorize the Secretary of State to lead United
States participation in the Minerals Security Partnership for specified purposes, including:
“(1) To identify and support investment and advocate for commercial and military use critical
mineral mining, processing, and refining projects that enable robust, secure, and
transparent critical mineral supply chains, in consultation with the other Feder al agencies,
as appropriate.
(6) further contemplates policies and procedures, and if necessary, to provide funding to
facilitate cooperation on joint projects with members of the Minerals Security Partnership,
including those related to cost-sharing agreements, political risk insurance, financing, equity
investments, pricing mechanisms, procurement, and other support.
(7) To coordinate with Development Finance Institutions, Export Credit Agencies,
multilateral banks, and private banks headquartered in Minerals Security Partnership
member countries to promote information exchange and co-financing through the Minerals
Security Partnership Finance Network."
Section 102(f) of the Act addresses private sector collaboration:
“(3) The Department shall coordinate with the private sector to leverage expertise and
ensure projects supported by the Minerals Security Partnership are catalyzed by private
sector investments and commercial offtake, with priority to the United States, through the
Minerals Investment Network for Vital Energy Security and Transformation (commonly
known as MINVEST)."
Act Directs U.S. Government Support for Critical Mineral Projects Abroad
Section 105(a) of the Act states the sense of Congress that:
"United States private sector entities competing for critical mineral projects abroad need
support from the United States Government."
Section 105(b) directs the Department of State to establish "a mechanism and process for the United
States to provide support for critical mineral projects in foreign countries," including "a mechanism for
certifying that critical mineral projects uphold labor rights and minimize environmental impacts." The
Company believes such a mechanism, if enacted, would be relevant to critical mineral projects located
in allied jurisdictions such as Canada.
In introducing the legislation, its sponsors, Representatives Young Kim and Ami Bera, described the
background to the DOMINANCE Act as follows:
“The Chinese Communist Party has a chokehold on the building blocks of the modern
technology economy: critical minerals. Beijing dominates more than 70% of global rare
earth mining and nearly 90% of refining and has repeatedly weaponized this leverage.
Access to these minerals is foundational to U.S. national and economic security.”
“By working with trusted allies and partners to build new mining and processing capacity,
developing minerals and energy infrastructure, and fostering strong demand for non-
Chinese minerals, we can secure resilient supply chains that support our economy, bolster
the defense industrial base, and prevent the CCP from holding the free world hostage.4”
The DOMINANCE Act remains subject to further legislative consideration and has not been enacted into
law. If enacted, the legislation may help create a more supportive policy environment for critical mineral
projects located in allied jurisdictions by encouraging U.S. engagement, investment coordination, supply
chain partnerships, and project-level collaboration with trusted partners.
First Atlantic believes the policy direction reflected in the DOMINANCE Act is consistent with the
Company's broader strategy to advance a North American nickel -cobalt project capable of supporting
downstream industries in the United States and Canada, inc luding battery refining, stainless steel,
specialty alloys, defence manufacturing and advanced industrial applications.
4 https://youngkim.house.gov/wp-content/uploads/THE-DOMINANCE-Act-One-pager.pdf
Figure 1: Sample of awaruite (Ni ₃Fe), a natural magnetic nickel -iron-cobalt alloy mineral that already
exists in the form Section 3(8) of the DOMINANCE Act defines as "processed."
Figure 2: Drill core from the Pipestone XL Nickel -Cobalt Alloy Project showing visible coarse- grained
awaruite (Ni-Fe-Co alloy)
AWARUITE: A SMELTER-FREE NICKEL-COBALT ALLOY (Ni₃Fe)
Figure 3: USGS quote on awaruite nickel-iron-cobalt alloy.
Awaruite is a naturally occurring, sulfur-free nickel-iron-cobalt alloy with nickel content of approximately
77%. Because it already exists in a metallic state, awaruite can be processed into a high- grade
concentrate of approximately 60% nickel through magnetic separation and flotation, without smelting,
roasting, or high-pressure acid leaching. This concentrate can be sent directly for downstream battery
chemical refining or for the manufacture of specialty alloys and stainless steel.
As stated in the August 2025 report From Rocks to Power: Strategies to Unlock Canada's Critical
Minerals for Global Leadership in Energy Storage, EVs, & Beyond from the Battery Metals Association
of Canada:
"Awaruite is not a sulfide nor an oxide nickel ore but a high- content native nickel-iron ore.
Simple beneficiation processes after mining could provide 60% Ni concentrate, ready for
leaching for battery cathode purposes and would yield MHP as a by-product. This process
would bypass pyrometallurgy or early hydrometallurgy stages and be among the lowest
carbon-intensive nickel production sites in the global nickel market."5
5 https://transitionaccelerator.ca/wp-content/uploads/2025/08/From-Rocks-to-Power-Nickel.pdf
The U.S. Geological Survey highlighted awaruite's potential in its Mineral Commodity Summaries
2012, stating:
"The development of awaruite deposits in other parts of Canada may help alleviate any
prolonged shortage of nickel concentrate. Awaruite, a natural iron- nickel alloy, is much
easier to concentrate than pentlandite, the principal sulfide of nickel."
The absence of sulfur reduces the risk of acid mine drainage and certain permitting challenges
commonly associated with sulfide mineralization, positioning awaruite to supply North American
industries including stainless steel, electric vehicles, aerospace, and defence.
INVESTOR INFORMATION
The Company's common shares trade on the TSX Venture Exchange under the symbol " FAN", the
American OTCQB Exchange under the symbol "FANCF" and on several German exchanges, including
Frankfurt and Tradegate, under the symbol "P21".
Investors can get updates about First Atlantic by signing up to receive news via email and SMS text at
www.fanickel.com.
For further information, please contact:
Rob Guzman
Investor Relations
1 (844) 592-6337
Qualified Person
Adrian Smith, P.Geo., a director and the Chief Executive Officer of the Company is a qualified person
as defined by NI 43- 101. The qualified person is a member in good standing of the Professional
Engineers and Geoscientists Newfoundland and Labrador (PEGN L) and is a registered professional
geoscientist (P.Geo.). Mr. Smith has reviewed and approved the technical information disclosed herein.
About First Atlantic Nickel & Cobalt Corp.
First Atlantic Nickel & Cobalt Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) is a critical mineral
exploration company in Newfoundland & Labrador developing the Pipestone XL Nickel -Cobalt Alloy
Project. The project spans the entire 30-kilometer Pipestone Ophiolite Complex, where multiple zones,
including RPM, Alloy Max, Super Gulp, Atlantic Lake, and Chrome Pond, contain awaruite (Ni ₃Fe), a
naturally occurring magnetic nickel-iron-cobalt alloy of approximately ~77% nickel with no sulfur and no
sulfides, along with secondary chromium mineralization. Awaruite’s sulfur -free composition removes
acid mine drainage (AMD) risks, while its unique magnetic properties enable processing through
magnetic separation, eliminating the electricity requirements, emissions, and environmental impacts of
conventional smelting, roasting, or high-pressure acid leaching while reducing dependence on overseas
nickel processing infrastructure.