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First Atlantic Nickel Receives Junior Exploration Assistance Grant from Province of Newfoundland & Labrador

Corporate Updates

FIRST ATLANTIC NICKEL RECEIVES JUNIOR EXPLORATION ASSISTANCE GRANT FROM

PROVINCE OF NEWFOUNDLAND & LABRADOR

(Vancouver, British Columbia) -- (GlobeNewsWire) -- May 6, 2025 - First Atlantic Nickel Corp. (TSXV:

FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") expresses its gratitude to the

Province of Newfoundland & Labrador for awarding the Company the maximum grant of $150,000

through the Junior Exploration Assistance (JEA) program. The funding will support critical mineral

exploration at the Company's Atlantic Nickel Project (the “Project”), a 100%-owned, district-scale nickel

project strategically located in central Newfoundland, with access to infrastruc ture including roads and

clean hydro-grid power. The Project spans the entire 30 km Pipestone ophiolite complex, which hosts

serpentinized ultramafic rocks enriched in nickel, chromium and cobalt. The primary nickel mineral is

awaruite, a sulfur -free, naturally occurring nickel -iron alloy (Ni ₃Fe) composed of approximately 75%

nickel.

Phase 1 drilling at the Project has revealed wide zones of visible awaruite nickel mineralization, with

assays confirming nickel grades consistently distributed across multiple drill holes. Initial Davis Tube

Recovery (DTR) metallurgical testing indicates that magnetic separation is effective in separating and

concentrating awaruite nickel. Unlike conventional nickel extraction methods, awaruite can be

processed without smelting or roasting, offering a low carbon, environmentally superior alternative with

domestic processing capabilities and non-acidic tailings.

The environmental advantage of awaruite lies in its sulfur -free composition, which eliminates the need

for energy-intensive smelting or roasting processes typically required to remove sulfur compounds from

conventional nickel ores. Because secondary proces sing isn't required, awaruite nickel offers high

payability, avoiding the treatment, refining, and shipping charges usually associated with traditional

processes such as smelting or roasting. The use of magnetic separation allows for the efficient handling

of large rock volumes, reducing initial rock volume by approximately 90%, producing a high-grade

concentrate that can be further enhanced through subsequent flotation stages.

The Company is preparing to launch its fully funded and permitted Phase 2 Drill Program, which will

commence shortly. This next phase will focus on large-scale step-out drilling to expand the RPM Zone

discovery made during the successful Phase 1 Program. In the coming weeks, as Phase 2 progresses,

the Company expects to receive drill assay results from AN -24-05 and DTR metallurgical results from

holes AN-24-04 and AN-24-05 (RPM Drill Holes 4 and 5).

For further information, questions, or investor inquiries, please contact Rob Guzman at First

Atlantic Nickel by phone at +1-844-592-6337 or via email at [email protected]

The Fraser Institute has consistently ranked Newfoundland & Labrador among the top global

jurisdictions for mining investment. As noted in a recent report1, "According to the provincial government,

the province is home to 23 of the 31 critical minerals in Canada, in addition to base metals. In 2022, 11

mines across Newfoundland and Labrador produced approximately $5.4 billion in mineral shipments

and employed more than 8,000 people. So mining is already a major industry, but investors are clearly

bullish on the province's potential. In fact, according to the latest survey of senior executives in the

mining industry (published by the Fraser Institute), Newfoundland and Labrador is the 4th most attractive

jurisdiction for mining investment (out of 62 jurisdictions) trailing only Nevada, Western Australia and

Saskatchewan."

Junior Exploration Assistance Program

The JEA Program is designed to expand the mineral inventory of Newfoundland and Labrador by

supporting the discovery of new mineral districts, occurrences, prospects, and deposits. It also aims to

advance existing discoveries toward NI 43-101 compliant mineral resources, strengthening the

province’s position as a world-class mineral exploration destination. The JEA is funded through a

combination of: $1.3 million in Provincial Grant funds, $1.3 million from Critical Mineral Assistance

(CMA), and $1.3 million in Provincial Critical Mineral Assistance (PCMA). Funding is provided in the

form of rebates for eligible exploration activities. Companies conducting critical mineral exploration may

qualify for larger rebates through the CMA and PCMA streams. Subject to budget approval for the 2025

– 2026 fiscal year, the JEA will offer rebates covering 40% – 75% of approved exploration costs, up to:

$150,000 per project on the island of Newfoundland.

Awaruite (Nickel-iron alloy Ni₂Fe, Ni₃Fe)

Awaruite, a naturally occurring sulfur -free nickel -iron alloy composed of Ni ₃Fe or Ni ₂Fe 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, roasting, or high-

pressure acid leaching 2. 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) 3. These entities include Russia 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

1 https://www.fraserinstitute.org/commentary/investors-bullish-newfoundland-and-labradors-mining-potential

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

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

concentrate. Awaruite, a natural iron-nickel alloy, is much easier to concentrate than pentlandite, the

principal sulfide of nickel"4. 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 release, addressing concerns about the large carbon footprint and toxic

emissions linked to nickel refining.

Figure 1: 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 5 and control an estimated 84%

of Indonesia's nickel output, the largest worldwide supply 6. 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.

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

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

6 https://web.archive.org/web/20250417033842/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., 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 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 North

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)7.

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, Europe, and Canada. The

company is positioned to meet the growing demand for re sponsibly 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.

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

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.

Forward-looking statements:

This news release may include "forward- looking information" under applicable Canadian securities legislation.

Such forward-looking information reflects management's current beliefs and are based on a number of estimates

and/or assumptions made by and infor mation currently available to the Company that, while considered

reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual

results and future events to differ materially from those expressed or implied by such forward-looking information.

Forward-looking information in this news release includes, but is not limited to: expectations regarding the timing,

scope, and results of the Company’s Phase 1 and Phase 2 work and drilling programs; future project

developments; the Company’s objectives, goals, and future plans; statements and estimates of market conditions;

the potential for Newfoundland and Labrador to emerge as a clean energy leader and exporter of geologic

hydrogen; the potential for geologic hydrogen to serve as a renewable, low-carbon energy source; the viability of

magnetic separation as a low-impact processing method for awaruite; and the strategic and economic implications

of the province’s geological features in supporting the clean energy trans ition. Readers are cautioned that such

forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and

uncertainties including, but not limited to, general business, economic, competitive, political and social

uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of

exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour

issues, delays in obtaining governmental approvals and permits, and other risks in the mining and clean energy

industries. Additional factors and risks including various risk factors discussed in the Company’s disclosure

documents which can be found under the Company’s profile on http://www.sedarplus.ca. Should one or more of

these risks or uncertainties materialize, or should assumptions underlying the forward -looking statements prove

incorrect, actual results may vary materially from those described herein as intended, planned, anticipated,

believed, estimated or expected.

The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves

many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be

mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there

can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future

events could differ materially from those anticipated in such statements.