First Atlantic Nickel Highlights Relevance of Pipestone XL Awaruite Nickel-Cobalt Alloy Discovery to Address U.S. Critical Mineral Supply Chain Vulnerabilities Identified in
First Atlantic Nickel Highlights Relevance of Pipestone XL Awaruite Nickel-Cobalt Alloy
Discovery to Address U.S. Critical Mineral Supply Chain Vulnerabilities Identified in
January 14, 2026 White House Proclamation
GRAND FALLS-WINDSOR, Newfoundland and Labrador , January 15, 2026 – First Atlantic Nickel
Corp. (TSXV: FAN | OTCQB: FANCF) (the “Company” or “First Atlantic”) notes that its Pipestone XL
discovery of awaruite, a rare, naturally occurring nickel -iron-cobalt alloy, is relevant to critical mineral
supply chain vulnerabilities outlined in the White House proclamation published January 14, 2026.
The proclamation, titled “Adjusting Imports of Processed Critical Minerals and Their Derivative Products
into the United States” states that processed critical minerals and their derivative products (PCMDPs)
are being imported into the United States in quantities that may threaten to impair national security. The
proclamation identifies nickel and cobalt as essential minerals for critical infrastructure, defense
applications, and battery energy storage systems.
The proclamation further notes that, “Even where the United States has domestic mining
capacity, such as for cobalt, nickel, and rare earth elements, the United States lacks the
domestic processing capacity to avoid downstream net-import reliance.”
In response, the Secretary of Commerce recommended that the President “negotiate agreements with
foreign nations to ensure the United States has adequate critical mineral supplies and to mitigate the
supply chain vulnerabilities as quickly as possible.” Canada is considered a "domestic source" under
Title III of the U.S. Defense Production Act (DPA) and produces 21 of the 50 minerals designated as
critical by the U.S. Geological Survey (USGS), as well as 10 of the 12 NATO defense-critical raw
materials.1
USGS Identified Awaruite - A Rare Magnetic Nickel-Cobalt Alloy - as a Potential Solution
to Nickel Concentrate Shortages
First Atlantic's Pipestone XL discovery represents the first large-scale reported drilled discovery of
awaruite in the Western Hemisphere since the U.S. Geological Survey (USGS) identified this rare
magnetic nickel-cobalt alloy as a potential solution to nickel concentrate shortages in its 2012 annual
report on nickel.
The USGS stated: “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.”
1 https://connect2canada.com/wp-content/uploads/2025/01/critical-minerals.pdf
Figure 1: Quote from USGS on Awaruite Deposits2
Awaruite's Magnetic Processing Bypasses Smelter and Permitting Constraints of
Conventional Nickel Sources
The White House proclamation emphasizes that “mining a mineral domestically does not safeguard the
national security of the United States if the United States remains dependent on a foreign country for
the processing of that mineral.” Awaruite offers the potential to bypass the processing bottlenecks and
challenges associated with conventional nickel sources.
Unlike conventional nickel sulfide deposits, which typically require pyrometallurgical smelting, or laterite
deposits, which often rely on high-pressure acid leaching (HPAL) or roasting, awaruite can be processed
using magnetic separation and flotation. This process may eliminate certain processing and permitting
bottlenecks associated with nickel sulfide or laterite ores. Awaruite concentrate can be shipped directly
from mine to refinery, where nickel sulfate (NiSO ₄), a critical mineral derivative product, may be
produced for the battery cathode manufacturing supply chain.
Awaruite is a naturally occurring, sulfur-free nickel-iron-cobalt alloy with nickel content of approximately
77%3. Its magnetic properties and simple flotation characteristics result in lower electricity requirements
and reduced emissions relative to conventional nickel processing methods. In addition, the absence of
2 https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf
3 https://www.sciencedirect.com/science/article/abs/pii/S0892687522003648
sulfur reduces the risk of acid mine drainage and certain permitting challenges commonly associated
with sulfide mineralization.
Limited North American Smelter Capacity Constrains Nickel Sulfide Processing
According to the August 2025 report “ From Rocks to Power: Strategies to Unlock Canada’s Critical
Minerals for Global Leadership in Energy Storage, EVs, & Beyond,” North America currently only has
two operational pyrometallurgical nickel smelters: Glencore’s Sudbury Smelter and Vale’s Copper Cliff
Smelter & Refinery, both located in Ontario. Vale’s Thompson Smelter in Manitoba was permanently
closed in 2018, further constraining processing capacity. The United States currently has no operating
domestic nickel smelters. This limited processing capacity represents a key vulnerability identified in the
White House proclamation. Awaruite’s ability to be processed without smelting may provide an
alternative pathway that reduces reliance on constrained or foreign-controlled processing infrastructure.
Awaruite Nickel-Cobalt Concentrate: Direct From Mine to Refinery Without Smelting
Preliminary metallurgical testing at Pipestone XL has returned a magnetic concentrate averaging
approximately 1.3% nickel and secondary cobalt in alloy mineralization from large, disseminated, near-
surface zones. Ongoing metallurgical work is focused on upgrading this magnetic concentrate by
approximately 45-fold, from 1.3% to ~60%, through flotation.
As stated in the August 2025 report “From Rocks to Power" from the Battery Metals Association of
Canada4:
"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."
The Battery Metals Association of Canada has also stated in June 20255:
“A future nickel metallurgical plant could be designed to produce nickel sulfate or even
precursors to the cathode active material (pCAM) for NMC batteries. Nickel sulfate can be
produced by leaching nickel matte from nickel sulfide concentrates if the faci lity is a smelter, or
it can be easily produced from a hydrometallurgical facility leaching awaruite concentrates.”
4 https://transitionaccelerator.ca/wp-content/uploads/2025/08/From-Rocks-to-Power-Nickel.pdf
5 https://netzeroindustrialpolicy.ca/wp-
content/uploads/2025/07/BMAC_TA_EFL_Western_Canadian_Battery_Value_Chain.pdf
Section 45X Advanced Manufacturing Production Credit
Section 19 of the U.S. Advanced Manufacturing Production Credit (45X) defines qualifying nickel as
nickel that is “converted to nickel sulphate” or “purified to a minimum purity of 99 percent nickel by
mass.” The ability of awaruite concentrate to be directly converted to nickel sulfate, without intermediate
smelting or roasting, may position it favorably within this framework, potentially enabling domestic
production of 45X -compliant nickel and cobalt concentrate for the US Battery Manufacturing Supply
Chain.
Chromium Identified as Potential Additional Recoverable Mineral
The Company’s metallurgical program now includes evaluation of chromium following confirmation of
chromite mineralization with elevated chromium content in the awaruite-bearing magnetic concentrate.
Chromium has been recovered alongside nickel through Davi s Tube Recovery (DTR) magnetic
separation testing, and additional metallurgical work is underway to assess the potential to produce a
salable chromite concentrate by -product. North America currently lacks sufficient quantities of mined
chromium concentrates required for stainless steel and advanced alloy manufacturing. Chromite
recovery represents a potential additional critical mineral supply chain opportunity addressed by the
Pipestone XL project.
Phase 2X RPM Drilling and Upcoming Pipestone XL Drill Program
The Company anticipates providing updates on drill holes AN -25-11 through AN-25-14 from the RPM
Zone Phase 2 program. Following the recent closing of a $2.61 million financing, the company is
evaluating various targets for a new winter drill program to further delineate and expand the Pipestone
XL Nickel Alloy Project.
RPM ZONE DRILLING SUMMARY
Table 1: RPM Zone – Complete Intervals for All RPM Drill Holes Reported to Date
Drill Hole Zone Section From
(m)
To
(m)
Interval
(m)
DTR Ni
(%)
Mag Conc Ni
(%)
Mass Pull (%)
AN-24-02 RPM S1 11.0 394.1 383.1 0.13 1.37 9.50
AN-24-03 RPM S1 18.0 234.0 216.0 0.11 1.32 9.12
AN-24-04 RPM S1 12.0 378.0 366.0 0.14 1.46 9.53
AN-24-05 RPM S2 6.0 357.0 351.0 0.12 1.47 8.21
AN-25-06 RPM S2 5.65 453.0 447.35 0.11 1.27 9.02
AN-25-07 RPM S2 9.0 495.0 486.0 0.09 0.97 9.60
AN-25-08 RPM S3 11.0 491.0 480.0 0.12 1.35 8.79
AN-25-09 RPM S3 9.0 483.0 474.0 0.08 0.93 9.00
AN-25-10 RPM S1 8.0 236.0 228.0 0.15 1.44 10.48
AN-25-11 RPM S1 East TBA – Eastern Expansion
AN-25-12 RPM S1 East TBA – Eastern Expansion
AN-25-13 RPM S4 TBA – 400m Northern Extension
AN-25-14 RPM S0 South TBA – 200m Southern Step-Out
DTR nickel percentage is calculated by multiplying the mass pull (%) by the magnetic nickel concentrate grade
(%). This number represents the proportion of nickel recoverable through magnetic separation and is not
equivalent to a standard assay result. Every 3-meter interval throughout each drill hole was processed using this
metallurgical method. DTR results may vary depending on equipment settings and ongoing technological
advancements.
Figure 2: Pipestone XL Alloy Project showing target zones along a 30km trend over total
magnetic intensity (TMI).
Figure 3: Aerial image looking over RPM zone extension highlighting flat undulating terrain
typical at the Pipestone XL nickel alloy project.
Figure 4: RPM Zone Area Map Showing Phase 2X Expansion Drill Hole Locations and Surface
Sample DTR Nickel Results Outlining the Priority Target Areas.
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 MORE INFORMATION:
First Atlantic Investor Relations
Robert Guzman
Tel: +1 844 592 6337
Disclosure
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.
Analytical Method & QA/QC
Samples were split in half on site, with one half remaining in the core box for future reference and the
other half securely packaged for laboratory analysis. The QA/QC protocol included the insertion of
blanks, duplicates, and certified reference material (standards), with one QA/QC sample being inserted
every 20 samples to monitor the precision and accuracy of the laboratory results. All analytical results
successfully passed QA/QC screening at the laboratory, and all Company inserted standards and blanks
returned results within acceptable limits.
Samples were submitted to Activation Laboratories Ltd. (“Actlabs”) in Ancaster, Ontario, an ISO 17025
certified and accredited laboratory operating independently of First Atlantic. Each sample was crushed,
with a 250 g sub-sample pulverized to 95% - 200 mesh. A magnetic separate was then generated by
running the pulverized sub-sample through a magnetic separator which splits the sub-sample into
magnetic and non-magnetic fractions. This involves running a 30 g split of the pulp through a Davis
Tube magnetic separator as a slurry using a constant flow rate, a magnetic field strength of 3,500 Gauss,
and a tube angle of 45 degrees to produce magnetic and non-magnetic fractions.
The magnetic fractions are collected, dried, weighed and the magnetic fraction is fused with a lithium
metaborate/tetraborate flux and lithium bromide releasing agent and then analyzed on a wavelength
dispersive XRF for multiple elements including nickel, cobalt, iron and chromium. The magnetically
recovered nickel grade was then calculated by multiplying the XRF fusion nickel value by the weight of
the magnetic fraction and dividing by the total recorded feed weight or magnetic mass pulled from the
sample.
True widths are currently unknown. However the nickel bearing ultramafic ophiolite and peridotite rocks
being targeted and sampled in the drilling programs at the Pipestone XL Project are mapped on surface
and in drilling as several hundred meters to over 1 kilometer wide and approximately 30 kilometers long.