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First Atlantic Nickel and Colorado School of Mines Launch Research Partnership to Explore Geologic Hydrogen Potential IN Newfoundland Ophiolites

Partnerships & JV

FIRST ATLANTIC NICKEL AND COLORADO SCHOOL OF MINES LAUNCH RESEARCH

PARTNERSHIP TO EXPLORE GEOLOGIC HYDROGEN POTENTIAL IN

NEWFOUNDLAND OPHIOLITES

Vancouver, British Columbia – (GlobeNewsWire – March 19, 2025) -- First Atlantic Nickel Corp. (TSXV: FAN)

(OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce a strategic research

partnership with Colorado School of Mines to explore geologic hydrogen as an energy source. This collaboration

will focus on two significant ophiolite complexes in Newfoundland, Canada: the St. Anthony Ophiolite Complex

(Atlantis Project, 103 km²) and the Pipestone Ophiolite Complex (Atlantic Nickel Project, 71 km²). Both projects

are 100% owned by First Atlantic and encompass extensive ultramafic rock formations, characterized by

awaruite-bearing serpentinized peridotites, which are key indicators of geologic hydrogen.

First Atlantic Nickel continues to advance its core operations focusing on exploring and drilling for awaruite nickel-

iron alloy mineralization, which can be processed without smelting to create a secure, reliable supply of nickel

for North America while r educing dependence on foreign nations for processing. This approach directly

strengthens the resilience of North America's critical minerals supply chain. While maintaining this primary focus,

the Company has established a strategic research partnership wi th Colorado School of Mines that leverages

existing drilling data and exploration results from its Newfoundland ophiolite projects. The exploration data

provided to Colorado School of Mines will support academic research on geological hydrogen as a potenti al

energy source, with the ability to realize additional value from the project.

Geologic Hydrogen: Ophiolites and Peridotite

Ophiolites—sections of oceanic crust and upper mantle thrust onto continental crust —are globally recognized

as prime sources of geologic hydrogen, often referred to as "white hydrogen" or "gold hydrogen." These

formations are dominated by ultramafic rocks, notably peridotite, which consists primarily of olivine and pyroxene

minerals rich in nickel, chromium, magnesium, and iron. When peridotite interacts with water, it triggers

serpentinization—a hydrothermal reaction in which iron oxidizes and water is reduced, releasing molecular

hydrogen gas (H₂). This natural process can be represented by the equation:

3FeO (in olivine) + H₂O → Fe₃O₄ (magnetite) + H₂ (hydrogen gas)

During serpentinization, awaruite (Ni ₃Fe) forms as a secondary mineral when liberated nickel (Ni 2+) and iron

(Fe2+) from the olivine, pyroxene, and chromite minerals react with the abundant hydrogen (H 2) present. This

natural process can be represented by the equation:

3Ni²⁺ + Fe²⁺ + 4H₂ → Ni₃Fe (awaruite) + 8H⁺

The formation of awaruite could not happen without the presence of abundant hydrogen. This process occurs

readily in ophiolitic peridotites at depth, where water saturated rocks in oxygen-poor, reducing conditions produce

this exothermic reaction, generating heat that sustains further reactions. According to the Geological Survey of

Finland, "In Europe and in regions outside the crystal shield, only ophiolites are often referred to as a source of

geological hydrogen."1 Within these ophiolite settings, serpentinized peridotites are the most promising targets,

with peridotites producing significantly more hydrogen than other rocks. As stated in a Frontiers in Geochemistry

article, "The best targets for stimulated hydrogen production are rocks such as peridotites, which can produce

2–4 kg hydrogen/m³ of rock, up to 4- orders of magnitude more hydrogen than mafic rocks such as basalts." 2

Ophiolites represent large potential sources of geologic hydrogen, with some of the most significant global

geologic hydrogen discoveries occurring in ophiolites.

Figure 1: Visual representation of the serpentinization process forming hydrogen

Quote From Dr. Yaoguo Li, Colorado School of Mines

“Geologic hydrogen systems are a combination of mineral systems and natural gas systems. In our group, we

have the unique combination of expertise from both the mining industry and oil and gas industry to advance

geologic hydrogen exploration and stimulated hydrogen monitoring” said Dr. Yaoguo Li from Colorado School of

Mines.

1 https://www.gtk.fi/en/current/geology-in-the-hydrogen-era/

2 https://www.frontiersin.org/journals/geochemistry/articles/10.3389/fgeoc.2024.1366268/full

Figure 2: Conceptual example of Geologic Hydrogen Extraction wells targeting serpentinized ultra mafic rocks,

process involves a process similar to fracking, stimulating, and hydrogen recovery.3

Awaruite: Indicator of Hydrogen-Producing Conditions

Academic research has established awaruite (Ni₃Fe) as a reliable indicator mineral for hydrogen-rich geological

environments. A landmark 2004 study published in the Proceedings of the National Academy of Sciences

(PNAS) documented:

"Metamorphic hydration and oxidation of ultramafic rocks produces serpentinites, composed of serpentine group

minerals and varying amounts of brucite, magnetite, and/or FeNi alloys. These minerals buffer metamorphic

fluids to extremely reducing conditions that are capable of producing hydrogen gas. Awaruite, FeNi₃, forms early

in this process when the serpentinite minerals are Fe-rich.”4

The PNAS researchers also noted: "The partial pressure of H2 needed to form awaruite increases with

temperature. For example, at 200°C, awaruite of composition FeNi3 cannot form unless the H2 partial pressure

is more than ≈320 bars, which would preclude awaruite formation in a shallow land system. Even at low

temperature, partial pressures in excess of 50 bars H2 is needed to form awaruite."5

This established scientific understanding makes awaruite an excellent indicator of hydrogen-rich environments,

as it forms only under the highly reducing conditions created by significant hydrogen generation. The distribution

of awaruite within serpentiniz ed peridotites in Newfoundland's ophiolites underscores the region's promise for

this research.

Newfoundland's Ophiolite Complexes: Pipestone & St Anthony’s Ophiolite Complexes

The research will focus on two properties wholly owned by First Atlantic hosting major ophiolite complexes:

Atlantis Project (St. Anthony Ophiolite Complex)

Located in northwestern Newfoundland, the St. Anthony Ophiolite Complex spans 103 km² across two ultramafic

massifs (60 km² and 43 km²). This flat-lying, thrusted sequence of oceanic lithosphere includes a mantle section

dominated by serpentinized harzburgite and dunite—peridotite subtypes rich in olivine. Historical exploration

identified nickel and chromium mineralization, with recent surveys confirming the presence of awaruite in

serpentinized zones. The complex's shallow structural orientation facilitat es surface access to potential

hydrogen-producing formations, making it an ideal study site.

Atlantic Nickel Project (Pipestone Ophiolite Complex)

Covering 71 km², this project features a 30 km long ultramafic belt within the Pipestone Ophiolite Complex. Unlike

the Atlantis Project, the Pipestone Ophiolite exhibits a steep to near -vertical dip, suggesting a depth extent

exceeding several kilometers. First Atlantic Nickel recently reported a new discovery at the RPM Zone,

intersecting 0.24% Nickel and 0.32% Chromium over 383.1 meters of serpentinized peridotite hosting

disseminated awaruite, with no cutoff in mineralization depth, indicating continuity of hydrogen- producing

3 https://research.lbl.gov/2024/06/26/geologic-hydrogen-a-new-source-of-carbon-free-fuel-for-the-world-new-opportunities-for-the-lab/

4 https://www.pnas.org/doi/10.1073/pnas.0405289101

5 https://www.pnas.org/doi/10.1073/pnas.0405289101

environment. The complex's deep structure aligns with models of hydrogen retention, where lithostatic pressure

at depths beyond 1 km could trap gas within zones of low permeability.

Global Hydrogen Ophiolite Discoveries

The research will draw insights from significant hydrogen-producing ophiolites worldwide:

Samail Ophiolite (Oman)

This formation produces hydrogen through low -temperature water/rock reactions, with dissolved H ₂

concentrations as high as 2.9 millimolar in peridotite wells. Research estimates hydrogen generation at depths

up to 5 km, with some hydrogen trapped and some escaping via springs, providing a benchmark for retention

dynamics. Studies suggest that for economically viable extraction, stimulation methods must increase hydrogen

production rates by at least 10,000- fold over natural levels 6—a challenge being explored through enhanced

fracturing and fluid chemistry adjustments.

Bulqizë Mine (Albania)

This recently discovered hydrogen reservoir vents a minimum of 200 tons of hydrogen annually at 84% hydrogen

by volume7, making it one of the largest recorded hydrogen flows globally. The hydrogen originates from a faulted

reservoir deeply rooted in the Jurassic ophiolite massif, suggesting similar potential for similar ophiolite systems

like those in Newfoundland.

Hydrogen Retention and Extraction Potential

When hydrogen forms during serpentinization, it may be contained if the surrounding rock has low permeability.

The serpentinization process often reduces permeability, potentially self -sealing the system. At increasing

depths, lithostatic pressure can exceed gas pressure, aiding containment. Extraction methods under exploration

include conventional drilling techniques similar to those used in the oil and gas industry. For the Atlantis Project,

in-ground stimulation methods similar to hydraulic fracturing ar e being evaluated to enhance hydrogen

production from its accessible, flat -lying peridotite. Conversely, the deep -extending vertical structures at the

Atlantic Nickel Project may host natural hydrogen reservoirs potentially accessible through targeted deep drilling.

Technical-economic analysis suggests that for economically viable hydrogen production from engineered water-

rock reactions in peridotite formations, stimulation methods must increase net hydrogen production at least

10,000-fold compared to natural rates8. Researchers propose achieving this through increased fracturing density

6 https://www.frontiersin.org/journals/geochemistry/articles/10.3389/fgeoc.2024.1366268/full

7 https://www.science.org/doi/10.1126/science.adk9099

8 https://www.frontiersin.org/journals/geochemistry/articles/10.3389/fgeoc.2024.1366268/full

and optimizing the chemistry of injected fluids to enhance hydrogen generation.

Figure 3: Illustration of geophysics needed in stimulated H2. Real -time monitoring of H2 generation process

using integration of electromagnetic and magnetic data: characterizing and monitoring the temperature field, and

real-time feedback to engineering operation using ML processing. (Image courtesy Mengli Zhang and Jenny

Crawford.)

Multidisciplinary Research Methodology

The Company’s partnership with Colorado School of Mines will employ a comprehensive suite of techniques to

evaluate hydrogen potential:

● Geophysical Surveys: Magnetic, gravity, and seismic methods will delineate subsurface structures and

identify fault systems that may channel or trap hydrogen.

● Remote Sensing: Hyperspectral imaging and satellite data will detect surface mineral signatures linked

to serpentinization (e.g., serpentine and magnetite).

● Soil and Gas Sampling: Surface measurements will quantify hydrogen emissions, providing evidence

of active generation and leakage.

● Rock Sampling and Drill Core Analysis: Petrographic and geochemical analyses will assess

serpentinization extent, awaruite abundance, and hydrogen saturation in mineral phases.

These integrated methods aim to construct a 3D model of hydrogen distribution, pinpointing high-potential zones

for further exploration or stimulation.

Technical Expertise from Colorado School of Mines

Colorado School of Mines has 150 years of history in mineral exploration, the Department of Geophysics has

100 years of history in mineral exploration, and the collaborating group Center for Gravity, Electrical, and

Magnetic Studies (CGEM) has history of 25 years of continuous researc h in this space funded by mineral and

oil & gas industries. CGEM currently has geologic research projects funded by Advanced Research Projects

Agency–Energy (ARPA-E) and by industry. They bring world-class expertise in geologic hydrogen systems, with

an established track record of collaboration with industry leaders in the mineral industry and oil and gas industry.

Their proficiency in geologic hydrogen research, geophysical modeling and remote sensing will enhance the

project's ability to characterize hydrogen reservoirs at depth.

ABOUT COLORADO SCHOOL OF MINES

Colorado School of Mines is a public R1 research university focused on applied science and engineering,

producing the talent, knowledge and innovations to serve industry and benefit society – all to create a more

prosperous future.

Scientific and Economic Implications

Geologic hydrogen represents a potentially significant, low -cost, and sustainable energy resource that could

substantially complement existing energy systems. Dr. Mengli Zhang from Colorado School of Mines has located

more than 500 drilled natural gas well s using geophysics and followed through with post -drilling analyses. Dr.

Zhang commented, “Through these experiences, I have developed expertise in prospecting maps of geologic

hydrogen and drilling location recommendations. Our group brings a unique set o f expertise to the full cycle of

geologic hydrogen exploration.”

Unlike traditional hydrogen production methods that require significant energy inputs, naturally occurring

hydrogen from ophiolites is continuously generated by ongoing geological processes and may be trapped in

large reservoirs. This natural production pa thway could result in substantially lower costs compared to

conventional hydrogen manufacturing processes.

The research program has three primary goals: first, to discover and map potential geologic hydrogen resources

within Newfoundland's ophiolite complexes; second, to develop exploration techniques for these resources; and

third, to establish efficient hydrogen generation methodologies from serpentinized ultramafic rocks. Geologic

hydrogen has the potential to be a large -scale source of hydrogen that is cheaper and safer than traditional

methods of hydrogen production that rely on oil and gas.

Awaruite (Nickel-iron alloy Ni₂Fe, Ni₃Fe)

Awaruite, a naturally occurring sulfur-free nickel-iron alloy composed of Ni₃Fe or Ni₂Fe with approximately ~75%

nickel content, offers a proven and environmentally safe solution to enhance the resilience and security of North

America's domestic critical minerals supply chain. Unlike conventional nickel sources, awaruite can be processed

into high-grade concentrates exceeding 60% nickel content through magnetic processing and simple floatation

without the need for smelting, roas ting, or high- pressure acid leaching 9. Beginning in 2025, the US Inflation

Reduction Act's (IRA) $7,500 electric vehicle (EV) tax credit mandates that eligible clean vehicles must not

contain any critical minerals processed by foreign entities of concern (FEOC) 10. These entities include Russia

9 https://fpxnickel.com/projects-overview/what-is-awaruite/

10 https://home.treasury.gov/news/press-releases/jy1939

and China, which currently dominate the global nickel smelting industry. Awaruite's smelter -free processing

approach could potentially help North American electric vehicle manufacturers meet the IRA's stringent critical

mineral requirements and reduce dependence on FEOCs for nickel processing.

The U.S. Geological Survey (USGS) highlighted awaruite's potential, 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 easi er to concentrate than pentlandite, the principal sulfide of nickel" 11.

Awaruite's unique properties enable cleaner and safer processing compared to conventional sulfide and laterite

nickel sources, which often involve smelting, roasting, or high-pressure acid leaching that can release toxic sulfur

dioxide, generate hazardous waste, and lead to acid mine drainage. Awaruite's simpler processing, facilitated

by its amenability to magnetic processing and lack of sulfur, eliminates these harmful methods, reducing

greenhouse gas emissions and risks associated with toxic chemical r elease, addressing concerns about the

large carbon footprint and toxic emissions linked to nickel refining.

Figure 4: Quote from USGS on Awaruite Deposits in Canada

The development of awaruite resources is crucial, given China's control in the global nickel market. Chinese

companies refine and smelt 68% to 80% of the world's nickel 12 and control an estimated 84% of Indonesia's

nickel output, the largest worldwide supply13. Awaruite is a cleaner source of nickel that reduces dependence on

foreign processing controlled by China, leading to a more secure and reliable supply for North America's stainless

steel and electric vehicle industries.

11 https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf

12 https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf

13 https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/

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. Stay connected and learn more by following us on these social media platforms:

https://x.com/FirstAtlanticNi

https://www.facebook.com/firstatlanticnickel

https://www.linkedin.com/company/firstatlanticnickel/

FOR MORE INFORMATION:

First Atlantic Investor Relations

Robert Guzman

Tel: +1 844 592 6337

[email protected]

Disclosure

Adrian Smith, P.Geo., 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 (PEGNL) and is a

registered professional geoscientist (P.Geo.). Mr. Smith has reviewed and approved the technical information

disclosed herein.

About First Atlantic Nickel Corp.

First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) is a Canadian mineral exploration

company developing the 100% -owned Atlantic Nickel Project, a large -scale nickel project strategically located

near existing infrastructure in Newfoundland, Canada. The Project's nickel occurs as awaruite, a natural nickel-

iron alloy containing approximately 75% nickel with no- sulfur and no- sulfides. Awaruite's properties allow for

smelter-free magnetic separation and concentration, which could strengthen Nort h America's critical minerals

supply chain by reducing foreign dependence on nickel smelting. This aligns with new US Electric Vehicle US

IRA requirements, which stipulate that beginning in 2025, an eligible clean vehicle may not contain any critical

minerals processed by a FEOC (Foreign Entities Of Concern)14.

First Atlantic aims to be a key input of a secure and reliable North American critical minerals supply chain for the

stainless steel and electric vehicle industries in the USA and Canada. The company is positioned to meet the

growing demand for responsibly sourced nickel that complies with the critical mineral requirements for eligible

clean vehicles under the US IRA. With its commitment to responsible practices and experienced team, First

Atlantic is poised to contribute significantly to the nickel industry's future, supporting the transition to a cleaner

energy landscape. This mission gained importance when the US added nickel to its critical minerals list in 2022,

recognizing it as a non-fuel mineral essential to economic and national security with a supply chain vulnerable

to disruption.

Neither the 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.

14 https://home.treasury.gov/news/press-releases/jy1939