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First Atlantic Nickel Unveils Initial Phase 2 Drill Plan Map with Drilling Underway Following Phase 1 Discovery at RPM Zone Confirming First Large-Scale Awaruite in the Atlantic

Drill Results

First Atlantic Nickel Unveils Initial Phase 2 Drill Plan Map with Drilling Underway Following

Phase 1 Discovery at RPM Zone Confirming First Large-Scale Awaruite in the Atlantic

July 23, 2025 - Grand Falls-Windsor, Newfoundland and Labrador -- (GLOBE NEWSWIRE) --

First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company")

is pleased to announce the release of its Initial Phase 2 Drill Plan Map detailing the locations of the first

five holes at the RPM Zone, within its 100%-owned Atlantic Nickel Project in central Newfoundland. The

recently completed Phase 1 drilling program successfully defined a near -surface mineralized zone

measuring appr oximately 400m x 500m containing magnetically recoverable awaruite nickel

mineralization. All Phase 1 RPM Zone drill holes intersected broad, continuous zones of mineralization,

yielding consistent grades and recoveries. M etallurgical testing via the Davis Tube Recovery (DTR)

method yielded an average magnetically recoverable nickel grade (DTR Ni%) of 0.13%, with an average

magnetic nickel concentrate of 1.41% Ni and an average mass pull of 9.1%. These results indicate an

average total nickel recovery of 54% based on an initial total nickel grade of 0.24%. The mineralized

system at the RPM Zone remains open in all directions, presenting significant exploration upside. The

fully funded Phase 2 drilling program is now underway and designed to further expand on this

discovery—the first widely disseminated, drilled awaruite discovery in the Atlantic.

The Atlantic Nickel Project comprises a large, continuous 30-kilometer belt of serpentinized ultramafic

ophiolite hosting disseminated awaruite nickel mineralization within heavily serpentinized, fractured, and

sheared peridotite rocks. These formations or iginated from a substantial segment of ancient oceanic

crust that was tectonically emplaced onto the continental margin. Awaruite, a natural nickel -iron alloy

(Ni₃Fe), is notable for its sulfur-free and magnetic properties, which facilitate straightforward processing

through magnetic separation and flotation. This eliminates the need for downstream high-temperature

smelting, roasting, or high-pressure acid leaching (HPAL), processes typically required for conventional

nickel sulfide and laterite deposits.

Highlights

● Phase 1 Drilling Discovers Large Zone of Awaruite Nickel: Initial drilling has successfully

delineated a substantial, continuous zone of disseminated awaruite nickel mineralization

covering at least 400 meters by 500 meters. This mineralized zone remains open in all directions,

with all drill holes ending in open mineralization, highlighting significant exploration potential.

● Metallurgical Results Demonstrate Excellent Concentration & Recovery: All four drill holes

from the Phase 1 program delivered consistent Davis Tube Recovery (DTR) metallurgical

results, producing an average magnetic concentrate grade of 1.41% nickel at a 9.1% mass pull.

The average calculated magnetically recoverable nickel (DTR Ni%) grade was 0.13%, providing

a strong foundation for Phase 2 expansion drilling.

● Phase 2 Expansion Drilling Underway: The fully -funded Phase 2 program is in process,

featuring a systematic, widely spaced, grid-based drill plan designed to significantly expand the

known footprint of the RPM Zone, building on the encouraging results from Phase 1.

● Mineralization Open for Expansion: With Phase 1 drill holes terminating in mineralization, the

system demonstrates excellent potential for further growth in all directions and at depth. This

geological profile suggests the possibility of a much larger mineralized body than currently

delineated.

● First Drilled Large Large-Scale Awaruite Nickel Discovery in the Atlantic: The RPM Zone

represents the first large-scale, drill -defined awaruite (Ni ₃Fe) nickel discovery in the Atlantic

region of North America. All drill holes have encountered visible awaruite nickel and yielded

positive results for magnetically recoverable nickel (DTR Ni% grade).

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]

CEO Quote

"The successful completion of our Phase 1 program validates our geological model, marking the first

major drilled awaruite discovery in the Atlantic region,” said Adrian Smith, CEO of First Atlantic. “Drilling

intersecting a broad near -surface mineralized zone measuring 400-by -500-meters, with all drill holes

ending in mineralization, clearly demonstrating the potential for significant scale. Davis Tube

Metallurgical results have demonstrated the unique advantage of awaruite: the ability to produce a high-

grade, smelter-free magnetic nickel concentrate through straightforward magnetic separation.” Smith

continued , “With Phase 2 drilling underway, our priority is to rapidly expand the known extent of this

discovery and further assess the district-scale opportunity at the Atlantic Nickel Project. We believe this

project has the potential to become a strategic supply of nickel for North America's critical minerals

supply chain that can be both mined and fully processed domestically."

Phase 1 Program Defines Major Awaruite Discovery at RPM Zone

The inaugural Phase 1 drilling program at the RPM Zone consisted of four diamond drill holes (AN -24-

02 to AN-24-05) totaling 1,363 meters. This program was designed to test areas with visible awaruite in

surface rock samples discovered throughout Pipestone Ophiolite Complex. This 30-kilometer -long,

highly magnetic ultramafic belt is considered prospective for awaruite mineralization.

All four holes successfully intersected their intended targets, cutting through broad, continuous intervals

of serpentinized peridotite hosting visible disseminated, awaruite nickel -iron alloy (Ni3Fe) from near -

surface to the end of each hole. The geology and style of mineralization were notably consistent across

the 400-by-500-meter drilled area, indicating strong lateral and vertical continuity and suggesting the

presence of a large, robust, and homogenous mineralizing system.

The DTR metallurgical results from all four RPM Zone holes averaged a magnetic concentrate grade of

1.41% nickel with an average mass pull of 9.10% resulting in a calculated average DTR Grade of 0.13%

nickel.

A summary of the complete DTR metallurgical results from the Phase 1 program is summarized below.

Table 1. 2024 and 25 reported magnetically recovered nickel in diamond drill holes at the Atlantic Property.

Drill Hole Zone Section

From

meters

To

meters

Interval

meters

Magnetically

Recovered

(DTR)

Nickel %

Magnetic

Concentrate

Nickel

Grade (Ni %)

Mass

Pull (%)

Comment

AN 24 - 01 Super

Gulp 3.23 297.0 293.8 0.06 0.89 6.90 NR - March

12, 2025

AN 24 - 02 RPM S1 11.0 394.1 383.1 0.13 1.37 9.50 NR - March

12, 2025

AN 24 - 03 RPM S1 18.0 234.0 216.0 0.11 1.32 9.12 NR - April 15,

2025

AN 24 - 04 RPM S1 12.0 378.0 366.0 0.14 1.46 9.53 NR- June 24,

2025

AN 24 - 05 RPM S2 6.0 357.0 351.0 0.12 1.47 8.21 NR - July 9,

2025

AN 25 - 06 RPM S2 453.0 pending pending waiting

analysis

AN 25 - 07 RPM S2 495.0 pending pending

waiting

analysis

AN 25 - 08 RPM S3 processing

AN 25 - 09 RPM S3 processing

AN 25 - 10 RPM S1 processing

PHASE 2 DRILLING UNDERWAY TO EXPAND RPM ZONE MINERALIZATION

The RPM Zone is a new, large-scale, at-surface awaruite nickel discovery. Visible awaruite in surface

rock samples was confirmed by Phase 1 drilling, which intersected mineralization in all four holes and

defined a preliminary footprint of about 400 by 500 meters. This broad, at-surface zone features

consistent DTR nickel grades from the surface and remains open at depth and in all directions. Every

hole drilled to date has encountered awaruite nickel mineralization, underscoring the robustness of this

near-surface system and its significant growth potential, with clear expansion opportunities north toward

Pipestone Pond, east toward Chrome Pond, and west into the RPM fault zone.

Phase 2 drilling is now underway with a strategic program designed to systematically expand beyond

the initial footprint through step-out drilling targeting greater depths. The first hole of the Phase 2

program, drill hole AN-25-06, encountered large grain visibly disseminated awaruite within a continuous

interval of serpentinized ultramafic peridotites (see figures 1-3) successfully extending the lateral strike

of mineralization eastward beyond AN-24-04 and AN-24-05. The hole was collared 200 meters east of

AN-24-05 and drilled in an eastward orientation towards Chrome Pond.

The fully funded Phase 2 campaign benefits from upgraded project infrastructure, including improved

road access and expanded camp facilities, while equipment optimizations have enabled enhanced

drilling capabilities to test the full vertical extent from surface and lateral extent of the mineralized

system. These advancements position the Phase 2 program to meaningfully expand the RPM Zone's

known footprint across all target directions, building on the exceptional foundation of this at-surface

discovery.

● Northern Extension: Step-out drilling will target the area to the north towards Pipestone Pond,

building on the results of hole AN -24-05. This hole represented a successful 400-meter step-out

and confirmed that mineralization continues significantly in this direction.

● Eastern Extension: Drilling will test the lateral extent of the mineralized system towards Chrome

Pond. This target has been prioritized following the results from hole AN-24-04, which returned the

highest DTR nickel grade of the program, 0.14% over 366 meters. AN-25-06 has expanded visible

awaruite mineralization further east of holes AN-24-04 & AN-24-05 with results pending.

● Western Extension: Drilling will evaluate the RPM fault zone to the west. Hole AN -24-03

intersected increasing nickel grades in its final 21 meters as it approached this structure, suggesting

the fault may influence the localization or concentration of higher-grade mineralization.

● At Depth: The Company will systematically test the mineralization at greater depths to evaluate

vertical continuity and assess the potential for a large scale, bulk -tonnage resource that may be

amenable to open-pit mining methods.

Figure 1: RPM Expansion area drill plan map showing Phase 1 drill holes and ongoing Phase 2

drilling. Phase 1 drill holes (red) and Phase 2 proposed/in-progress drill holes (yellow).

Figure 2: AN -25-06 at 149 meters downhole showing disseminated awaruite nickel-alloy

disseminated throughout serpentinized ultramafic peridotite. Bottom images show

photomicroscope grains of nickel-alloy along the cut core surface.

Figure 3: AN -25-06 at 261 meters downhole showing disseminated awaruite nickel-alloy

disseminated throughout serpentinized ultramafic peridotite. Bottom images show

photomicroscope grains of nickel-alloy along the cut core surface.

Figure 4: AN-25-06 at 327 meters downhole showing disseminated awaruite nickel-alloy

disseminated throughout serpentinized ultramafic peridotite. Bottom images show

photomicroscope grains of nickel-alloy along the cut core surface.