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First Atlantic Nickel Reports Dtr Metallurgical Results from Rpm Hole 2: Magnetic Concentrate of 1.32% Nickel & 1.95% Chromium over Entire 216 Meter Drill Hole

Drill Results Metallurgy & Processing

FIRST ATLANTIC NICKEL REPORTS DTR METALLURGICAL RESULTS FROM RPM HOLE 2:

MAGNETIC CONCENTRATE OF 1.32% NICKEL & 1.95% CHROMIUM

OVER ENTIRE 216 METER DRILL HOLE

Vancouver, British Columbia – (GlobeNewsWire – April 15, 2025) - First Atlantic Nickel Corp. (TSXV: FAN)

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

(DTR) metallurgical test results from drill ho le AN-24-03, the second of four drill holes at the RPM Zone within

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

averaging 1.32% nickel and 1.95% chromium across the entire 216 -meter length o f the drill hole, with

concentrate grades up to 2.54% nickel and 4.24% chromium.

Notably, the final 21 meters of drill hole AN -24-03 returned increasing DTR nickel grades averaging 0.15%,

above the hole's overall average of 0.11%. Drilling was halted at 216 meters upon encountering a fault zone of

heavily faulted and broken rock. Phase 2 will deploy more powerful drilling equipment to penetrate the fault zone.

The fault zone occurs within serpentinized peridotites, which are the same awaruite-bearing host rock observed

in all other RPM drill holes. Increased water permeability in the fault zone likely enhanced the serpentinization

process leading to more awaruite formation and higher DTR grades These results suggest strong potential for

westward expansion of the mineralized area into the fault zone.

The Company previously announced assay results on March 27, 2025, reporting drill hole AN-24-03 intersected

0.25% nickel and 0.29% chromium over 216 meters, with grades increasing to 0.27% nickel in the final 21 meters.

The DTR test results confirm that awaruite nickel can be effectively concentrated through magnetic separation,

marking a significant initial step toward establishing a smelter -free metallurgical process. This approach could

enable production of a high-grade nickel concentrate directly at the mine site, serving as a potential nickel feed

into a North American critical minerals supply chain. By eliminating the need for smelting or roasting, magnetic

separation of awaruite nickel could reduce reliance on foreign smelters and help grow a resilient North American

Nickel Supply chain unburdened by a lack of smelting capacity.

HIGHLIGHTS

● High-Grade Magnetic Concentrate: An average concentrate grade of 1.32% nickel and 1.95%

chromium across 216 meters, analyzed through 72 continuous DTR samples. With grades reaching up

to 2.54% nickel and 4.24% chromium.

● Fault Zone Potential: The final 21 meters of RPM Hole 2 (AN-24-03) ended in a fault zone with elevated

DTR nickel grades (0.15% vs 0.11% average). Increased permeability in the zone likely enhanced

serpentinization and awaruite formation, indicating that the fault immediately west of RPM Zone may

represent a new high-grade drill target.

● Mass Pull: An average mass pull of 9.12% over 216 meters, effectively reducing the total mass by

90.88% through magnetic separation.

● DTR Nickel: An average DTR nickel grade of 0.11% over 216 meters, increasing to 0.15% in the final

21 meters of the hole.

● Chromium and Cobalt: The magnetic concentrate contained 1.95% chromium and 0.06% cobalt.

Metallurgical testing will further investigate the potential for recovery and upgrading of these secondary

metals.

● Phase 2 Drilling: The new direct access road to the RPM Zone has been completed, and drill equipment

is now arriving on site in preparation for the start of Phase 2 drilling.

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]

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

Metallurgical testing process, which is viewable at: https://www.youtube.com/watch?v=q3zsgDtLWns

RPM ZONE: DTR RESULTS SUMMARY FROM DRILL HOLE AN-24-03

Table 1: DTR Metallurgical Test Results Summary from RPM Drill Hole 2 (AN-24-03)

Parameter Average Maximum Drill Length

Nickel - Magnetic Concentrate

Grade (%)

1.32% 2.54% 216m

Chromium - Magnetic Concentrate

Grade (%)

1.95% 4.24% 216m

Mass Pull (% of starting weight) 9.12% 14.47% 216m

Total Nickel Recovery (%) 44.44% 58.73% 216m

DTR Nickel Grade (%) 0.11% 0.15% 216m

RPM ZONE PHASE 1 DRILLING

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

Company's 30-kilometer awaruite nickel trend and has demonstrated significant metallurgical potential through

recent DTR testing. Drill hole AN -24-03 intersected visible, coarse- grained disseminated awaruite nickel, with

grain sizes up to 509 microns, over 216 meters. Magnetic concentrate from this interval averaged 1.32% nickel

and 1.95% chromium. Notably, the DTR nickel grade increased to 0.15% over the final 21 meters, compared to

the hole's overall average of 0.11%. Drilling was halted at 216 meters upon encountering heavily faulted and

broken rock, which exceeded the capabilities of phase 1 drill equipment. The mineralization is hosted in

serpentinized peridotites, consistent with all other drill holes at the RPM Zone. Increased water permeability in

the fault zone may have enhanced the serpentinization process, forming more awaruite resulting in higher DTR

grades. These results highlight the effectiveness of magnetic separation, achieving an average mass pull of

9.12%, thereby reducing the initial rock mass by 90.88%.

Previously reported assay results for AN-24-03 returned an average of 0.25% nickel and 0.29% chromium over

216 meters, with grades increasing to 0.27% nickel in the final 21 meters. The newly released DTR results

confirm that a substantial portion of this nickel can be effectively recovered through magnetic separation, yielding

a high-grade concentrate. The first four drill holes at the RPM Zone have delineated a mineralized area of 500

meters by 400 meters. AN-24-03 has confirmed the lateral extent of this zone while demonstrating increasing

grades into the fault zone. The hole terminated in mineralization due to the limitations of Phase 1 drill equipment,

suggesting potential for westward expansion of the mineralized area. Phase 2 drilling will deploy more powerful

equipment, utilizing HQ/NQ core sizes specifically designed to drill into and through the fault zone. This next

phase aims to extend the known mineralization further westward and at depth, potentially expanding the

mineralized area of the RPM Zone.

Table 2: DTR Metallurgical Test Results Summary from RPM Drill Hole 2 (AN-24-03)

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-24-03 18 234 216 9.12% 1.32 0.25 44.44% 0.11 1.95 0.29 0.18 0.06

Drill Hole Interval Breakdown

including 18 81 63 10.04% 1.05 0.25 40.24% 0.10 2.15 0.31 0.20 0.05

including 81 180 99 9.45% 1.22 0.25 44.05% 0.11 1.97 0.30 0.19 0.05

including 180 213 33 7.31% 1.73 0.26 46.92% 0.12 1.71 0.27 0.13 0.07

including 213 234 21 7.63% 1.93 0.27 54.95% 0.15 1.57 0.26 0.12 0.07

including

"up to" 14.47% 2.54 0.28 58.73% 0.15 4.24 0.75 0.47 0.08

Table 3: RPM Drill Hole 2 (AN-24-03) Drill Hole Collar Location

Hole ID Easting (UTM NAD83) Northing (UTM NAD83) Azm (degrees) Dip (degrees) Total depth (m)

AN-24-03 567118 5357574 270 -60 234m

QUOTE FROM ADRIAN SMITH, CEO

“Davis Tube Recovery (DTR) tests confirm that magnetic separation effectively concentrates awaruite nickel at

our Atlantic Nickel Project, advancing our goal of producing a 60% nickel concentrate on-site. As a natural nickel-

iron alloy, awaruite eliminates the need for costly secondary processing - smelting, roasting, and high-pressure

acid leaching - required for nickel sulfide and laterite ores. This add resses critical vulnerabilities in the North

American supply chain, including limited smelting capacity and dependence on smelters outside North America,

primarily owned by foreign entities of concern. The unique properties of awaruite enable efficient processing of

our near-surface mineralization through simple crushing, grinding, and magnetic separation, yielding a magnetic

concentrate comparable in grade to a high-grade nickel sulfide mine while reducing volume by 90% and enabling

fully domestic production capabilities.”

Figure 1: Cross-sectional view of the RPM Zone’s Discovery Drill Holes 1 and 2 (AN -24-02 and AN -24-03),

illustrating the grade distribution of magnetic concentrate and DTR recovery. RPM Drill Hole 1 averages 1.37%

nickel and 1.73% chromium, while RPM Drill Hole 2 averages 1.32% nickel and 1.95% chromium in continuous

magnetic concentrate across their entire intervals. Results for Drill Holes AN-24-04 and AN-24-05 are pending.

Figure 2: Drill hole location map at Atlantic Nickel Project showing the 30 km awaruite sulfur -free nickel-alloy

trend over TMI magnetics.

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 an efficient metallurgical process flow -sheet. Awaruite, a

naturally occurring nickel-iron alloy, is approximately ten times more magnetic than magnetite1 and contains no

sulfur, making it highly amenable for magnetic separation. This unique characteristic enables a streamlined and

environmentally responsible processing approach that:

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

typically required for nickel sulfides or laterites;

2. Reduces the total volume of material entering the flotation circuit, lowering operational costs;

3. Reduces energy consumption and environmental impact compared to conventional nickel ore

processing;

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

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

The Company is pursuing a staged metallurgical approach, beginning with magnetic separation as the initial

concentration step. This may be followed by flotation to further upgrade and purify the awaruite nickel

concentrate, with the potential to produce 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 the encouraging preliminary DTR results, the Company is planning a comprehensive metallurgical

process development program that will include:

1. Processing larger sample sizes through a pilot -scale magnetic separator to validate scalability and

consistency of recovery;

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

concentrate;

3. Optimizing recovery parameters to maximize nickel extraction efficiency and product grade;

4. Evaluating the recovery potential of secondary metals, including chromium and cobalt;

5. Producing metallurgical data to support future flowsheet design, process modeling and economic

evaluations.

DAVIS TUBE RECOVERY (DTR) METALLURGICAL TEST

Davis Tube Recovery (DTR) is a laboratory method that uses magnets to separate magnetic and non-magnetic

material from a sample, similar to commercial magnetic separators used in mining operations. The percentage

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

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

of magnetic mass recovered (mass pull) is used together with the assayed grade of the magnetic fraction to

calculate the magnetically recoverable nickel.

DTR nickel percentage is calculated by: Mass Pull (%) × Magnetic Nickel Concentrate Grade (%). This

represents the portion of nickel that can be recovered through magnetic separation and is not equivalent to a

standard assay result. DTR results can vary based on equipment settings and technological advancements.

The Company has released a new educational video that breaks down the Davis Tube Recovery (DTR) test into

five simple steps. This video is a valuable resource for anyone interested in understanding mineral exploration.

Please visit https://www.youtube.com/watch?v=q3zsgDtLWns to view the video.

Figure 3: Davis Tube Recovery (DTR) Metallurgical Test 5 Step Process

Figure 4: Core sample from RPM Drill Hole 2 (AN- 24-03) at a depth of 41 meters, showing visible awaruite

grains. The lower images display magnified views of these grains under a microscope, with sizes reaching up to

428 microns.