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First Atlantic Nickel Releases Initial Dtr Metallurgical Results: Magnetic Concentrate of 1.37% Nickel & 1.73% Chromium over 383.1 Metres

Drill Results Metallurgy & Processing

FIRST ATLANTIC NICKEL RELEASES INITIAL DTR METALLURGICAL RESULTS: MAGNETIC

CONCENTRATE OF 1.37% NICKEL & 1.73% CHROMIUM OVER 383.1 METRES

Vancouver, British Columbia – (GlobeNewsWire – March 13, 2025) - First Atlantic Nickel Corp. (TSXV: FAN)

(OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce initial Davis Tube

Recovery (DTR) metallurgical test results from drill hole AN -24-02, the first drill hole at the RPM Zone at i ts

100%-owned Atlantic Nickel Project in central Newfoundland. The DTR testing yielded a magnetic concentrate

containing an average grade of 1.37% nickel and 1.73% chromium across the entire 383.1 -meter length of the

drill hole, which encompassed all 133 drill core samples. These initial metallurgical results confirm the potential

for magnetic separation as a viable processing method for awaruite nickel mineralization previously identified at

the RPM Zone.

The Company previously announced on March 4, 2025, that drill hole AN-24-02 returned assay results averaging

0.24% nickel and 0.32% chromium over its entire 383.1- meter length, with coarse- grained awaruite visibly

disseminated throughout the drill core. This DTR testing has demonstrated that awaruite (Ni 3Fe) nickel can be

effectively concentrated through magnetic separation, an important step toward establishing a potential smelter-

free metallurgical process for the project.

HIGHLIGHTS

● High-Grade Magnetic Concentrate: An average magnetic concentrate grade of 1.37% nickel and 1.73%

chromium across 383.1 meters of drill core, analyzed through 133 samples spanning the entire interval,

with peak concentrate grades reaching 2.33% nickel and 8.17% chromium.

● Mass Pull: An average of 9.5% over 383.1 meters, yielding a magnetic concentrate that captures the

recovered nickel, chromium, and cobalt within 9.5% of the original mass, reducing the total mass by

90.5% and producing an optimal concentrate for further processing.

● Strong Recovery Rates: Calculated recoveries of magnetically recoverable nickel averaging 52.4% (up

to 63%) across the entire drill hole length.

● DTR Nickel: Average DTR nickel grade of 0.13% (up to 0.16%) over 383.1 meters.

● Chromium and Cobalt: Both chromium and cobalt were recovered in the magnetic concentrate, with

significant chromium values meriting further evaluation, adding potential for valuable by-products.

● DTR Test Video: The Company has released a corporate video of the Davis Tube Recovery (DTR)

Metallurgical test, viewable at https://www.youtube.com/watch?v=q3zsgDtLWns

● Phase 2 Drilling Program: Phase 2 drilling is set to begin soon, utilizing new road access and a higher-

power NQ/HQ drill rig to target deeper mineralization and expand the 500m × 400m mineralized area at

the RPM Zone. The program is fully funded by a recently closed, non-dilutive $3M strategic raise.

● Smelter-free nickel: Awaruite (Ni3Fe), a natural nickel-iron alloy containing ~75% Ni, enables smelter -

free magnetic separation, which could enhance the resilience and security of North America's critical

minerals supply chain. Awaruite's clean and efficient North American processing potential aligns with new

US Electric Vehicle IRA requirements, which stipulate that, beginning in 2025, eligible clean vehicles may

not contain any critical minerals processed by a foreign entity of concern8.

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]

RPM ZONE: 1.37% NICKEL MAGNETIC CONCENTRATE OVER 383.1 METERS

Table 1: DTR Metallurgical Test Results Summary from RPM Drill Hole 1 (AN-24-02)

Parameter Average Maximum Drill Length

Nickel - Magnetic Concentrate

Grade (%)

1.37% 2.33% 383.1m

Chromium - Magnetic Concentrate

Grade (%)

1.73% 8.17% 383.1m

Mass Pull (% of starting weight) 9.5% 14.33% 383.1m

Total Nickel Recovery (%) 52.4% 63% 383.1m

DTR Nickel Grade (%) 0.13% 0.16% 383.1m

The RPM Zone, located 10 km south of the Super Gulp Zone and 26 km south of Atlantic Lake within the

Company’s 30 -kilometer awaruite nickel trend, has demonstrated significant metallurgical potential through

recent Davis Tube Recovery (DTR) testing. Discovery drill hole AN -24-02 intersected visible, large- grained,

disseminated awaruite nickel with grain sizes frequently exceeding 500 microns. The mineral ization extended

from near -surface, beginning after 11 meters of overburden, to a final depth of 394 meters. The magnetic

concentrate averaged 1.37% nickel and 1.73% chromium across the entire 383.1-meter drill interval, with peak

concentrate grades reachi ng 2.33% nickel. With an average mass pull of 9.5%, this magnetic concentrate

process significantly reduced the initial rock mass by 90.5%. The testing highlights the potential of magnetic

separation as an effective processing method for this project’s awa ruite nickel mineralization, creating a high

grade nickel concentrate just 9.5% of the starting rock weight.

Phase 1 drilling has delineated a mineralized footprint of 500 meters by 400 meters across all four drill holes,

with consistent high -grade magnetic concentrate recoveries at an average mass pull of 9.5%, reinforcing the

zone’s potential for commercial dev elopment. Previously reported assay results of 0.24% nickel and 0.32%

chromium over 383.1 meters are now supported by these DTR test results, confirming the effectiveness of

magnetic separation for this mineralization type. DTR nickel grades average 0.13% (up to 0.16%) throughout

the interval, with nickel recoveries averaging 52.4%, and both chromium and cobalt in the magnetic concentrate

show potential for valuable by-products. This significant discovery remains open at depth in all directions.

Table 2: DTR Metallurgical Test Results from RPM Drill Hole 1 (AN-24-02)

Hole ID From

(m)

To (m) Interval

(m)

Mass

Pull (%)

Magnetic

Nickel

Concentrate

Grade (Ni %)

Nickel

Head

Grade

(%)

Nickel

Magnetic

Recovery

Magnetically

Recoverable

Nickel ( DTR

%)

Mag

Con

Cr (%)

Chromium

Head

Grade (%)

Magnetically

Recoverable

Chromium

(% DTR

Grade)

Mag

Con

Co (%)

AN-24-02 11.0 394.1 383.1 9.49 1.37 0.24 52.4% 0.13 1.73 0.32 0.16 0.06

Drill Hole Interval Breakdown

including 11.0 54.0 43.0 8.3 1.42 0.24 47.9% 0.12 2.30 0.33 0.19 0.06

including 54.0 105.0 51.0 11.2 1.26 0.24 57.0% 0.14 1.66 0.29 0.18 0.05

including 105.0 156.0 51.0 8.2 1.62 0.24 54.7% 0.13 1.66 0.27 0.14 0.06

including 156.0 204.0 48.0 9.1 1.35 0.22 53.2% 0.12 1.88 0.31 0.17 0.06

including 204.0 261.0 57.0 9.0 1.25 0.23 48.7% 0.11 1.67 0.29 0.15 0.06

including 261.0 318.0 57.0 10.0 1.46 0.25 56.1% 0.14 1.42 0.32 0.14 0.07

including 318.0 394.1 76.1 10.1 1.30 0.26 50.2% 0.13 1.63 0.39 0.16 0.05

including

“Up To” 14.3 2.33 0.31 63% 0.16 8.17 2.61 0.77 0.11

Note: Mag Con means Magnetic Concentrate

QUOTE FROM DR. RON BRITTEN, TECHNICAL ADVISOR

“The average grade of Discovery Drill Hole 1 at the RPM zone of the Atlantic Nickel Project, over its 383 m width,

is comparable to that of FPX Nickel’s large Baptiste Nickel Deposit in British Columbia,” says Dr. Ron Britten. “It

is an enticing result that bodes well for future drill programs at the RPM and other targets at the Atlantic Nickel

Project.”

Dr. Ron Britten, a respected geologist with over 40 years of experience, and technical advisor for First Atlantic

Nickel, continues to contribute significantly to exploration and development. He is recognized for discovering the

FPX Baptiste deposit in Bri tish Columbia, one of the largest undeveloped nickel deposits globally, which has

solidified his reputation in the field. His research, published in the Journal of Economic Geology, has enhanced

the industry’s knowledge of nickel mineralization, establishing him as an expert in awaruite. Dr. Britten’s skill in

identifying and developing mineral resources highlights his position as a leading expert in the nickel mining

sector.

Figure 1: Cross-sectional view of the RPM Zone’s Discovery Drill Hole 1 (AN -24-02), showing the grade

distribution of mineralization. The drill hole averages 1.37% nickel and 1.73% chromium in continuous

metallurgical Davis Tube Recovery (DTR) magnetic concentrate across a 383.1- meter interval. These values

are plotted alongside magnetically recoverable nickel grades (DTR). Assays from drill holes AN-24-03 and AN-

24-04 are still pending.

QUOTE FROM CEO ADRIAN SMITH

"These metallurgical results mark a significant milestone for our Atlantic Nickel Project," said Adrian Smith, CEO

of First Atlantic. "Not only have we confirmed extensive nickel mineralization at the RPM Zone, but we've now

demonstrated that a substantial portion of this nickel can be efficiently recovered using simple, environmentally

friendly magnetic separation techniques. Achieving a 91.5% mass reduction while producing a concentrate

grading 1.37% nickel is a major step toward our goal of developing a North American nickel source that

eliminates the need for roasting, high pressure acid leaching, and smelting."

SUPER GULP ZONE: 0.89% NICKEL MAGNETIC CONCENTRATE OVER 293.8 METERS

The Super Gulp Zone, located 10 km north of the RPM Zone and 16 km south of Atlantic Lake within the

Company’s 30-kilometer awaruite nickel trend, has revealed significant metallurgical potential through recent

Davis Tube Recovery (DTR) testing. Discovery drill hole AN -24-01 intersected visibly disseminated awaruite

from 3.23 meters to 297 meters depth, yielding a magnetic concentrate grade averaging 0.89% nickel and 1.60%

chromium across the entire 293.8 -meter interval, with peak concentrate grades of 1.50% nickel at an average

mass pull of 6.9%, significantly reducing the starting weight of rock by 93.1%. The testing underscores the

potential of magnetic separation for disseminated awaruite nickel-iron alloy mineralization.

Phase 1 drilling at Super Gulp has outlined a mineralized area with consistent magnetic concentrate recoveries,

supporting previously reported assay results of 0.25% nickel and 0.28% chromium over 293.8 meters. DTR

nickel grades average 0.06% (up to 0.10%) across the interval, meeting or exceeding the average cutoff grade

of 0.06% for the Baptiste awaruite nickel project in British Columbia, Canada. Chromium and cobalt recovered

in the magnetic concentrate show potential for valuable by-products. These results provide valuable insights to

optimize drill targeting and orientation in the next phase of drilling at Super Gulp.

Table 3: DTR Metallurgical Test Results from Super Gulp Drill Hole 1 (AN-24-01)

Hole ID From

(m)

To (m) Interval

(m)

Mass

Pull (%)

Magnetic

Nickel

Concentrate

Grade (Ni %)

Nickel

Head

Grade

(%)

Nickel

Magnetic

Recovery

Magnetically

Recoverable

Nickel

(DTR %)

Mag

Con

Cr (%)

Chromium

Head

Grade (%)

Magnetically

Recoverable

Chromium

(% DTR

Grade)

Mag

Con

Co (%)

AN-24-01 3.23 297 293.8 6.9% 0.89 0.25 24.6% 0.06 1.60 0.28 0.11 0.06

Drill Hole Interval Breakdown

including 3.23 51 47.8 7.3% 1.05 0.25 29.7% 0.08 1.78 0.34 0.13 0.05

including 51 120 69.0 6.7% 0.99 0.26 25.4% 0.07 1.28 0.26 0.09 0.05

including 264 297 33.0 6.5% 1.17 0.23 32.6% 0.08 2.00 0.31 0.13 0.07

including

"Up To" 10.4% 1.50 0.32 37.5% 0.10 4.49 0.80 0.40 0.08

MAGNETIC SEPARATION - PROCESSING ADVANTAGES

The DTR test results confirm that the awaruite mineralization at the Atlantic Nickel Project is well suited for

magnetic separation, a critical first step in developing a metallurgical process flow -sheet. Awaruite, a naturally

occurring nickel-iron alloy, is approximately ten times more magnetic than m agnetite1 and contains no sulfur,

making it an ideal candidate for magnetic separation. This characteristic enables a processing approach that:

1. Eliminates the need for secondary processing such as smelting, roasting, or high pressure acid leaching

typically used in nickel sulfides or laterites

2. Magnetic Separation reduces total volume of rock prior to entering flotation circuit

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

3. Reduced energy requirements & reduced environmental impact compared nickel sulfides and laterites

4. Aligns with North American critical mineral supply chain requirements, particularly the U.S. Inflation

Reduction Act's restrictions on minerals processed by foreign entities of concern

The Company's metallurgical approach follows a staged approach, with magnetic separation as the initial

concentration step. This may be followed by flotation to upgrade and purify an awaruite nickel concentrate,

potentially producing a final high- grade nickel concentrate exceeding 60% nickel, as demonstrated by the

Baptiste awaruite nickel project in British Columbia, Canada2.

NEXT STEPS IN METALLURGICAL PROGRAM

Building on these encouraging preliminary DTR results, the Company is planning a comprehensive metallurgical

process development program that will include:

1. Running larger sample sizes through a pilot-scale magnetic separator

2. Evaluating additional processing methods such as flotation and gravity separation on the magnetic

concentrate

3. Optimizing recovery parameters to maximize nickel extraction

4. Assessing potential by-product recovery, including chromium and cobalt

5. Generating data for future economic studies and flowsheet development

2 https://fpxnickel.com/projects-overview/baptiste-nickel-project/

Figure 2: Location of RPM Drill Hole 1 (AN-24-02) and Super Gulp Hole 1 (AN-24-01) at Atlantic Nickel Project

showing the 30 km awaruite sulfur-free nickel-alloy trend over TMI magnetics. See previous news for drill collar

UTM coordinates.

Figure 3: Image showing discovery hole RPM DDH001 (24-AN-02) with disseminated sulfur-free nickel-iron alloy

(awaruite). Top image showing close-up of drill core at 384 meters with coarse grained disseminated awaruite;

middle image showing core boxes from 380 meters to 394 meters, end of hole; bottom imag es showing

microscope photos of individual large grains of awaruite, 580 microns to 667 microns at 384 meters.