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FPX Nickel Announces Positive Step-Out Drill Results Expanding Van Target Mineralized Footprint to a Scale Comparable to Flagship Baptiste Nickel Deposit

Drill Results

Suite 320 – 1155 West Pender Street

Vancouver, BC Canada V6E 2P4

Tel: 604.681.8600

e-mail: [email protected]

FPX Nickel Announces Positive Step-Out Drill Results Expanding

Van Target Mineralized Footprint to a Scale Comparable to Flagship

Baptiste Nickel Deposit

Vancouver, January 4, 2023 – FPX Nickel Corp. (TSX-V: FPX, OTCQB: FPOCF) (“FPX” or

the “Company”) is pleased to announce additional drill results further confirming the significant

lateral extension of the new nickel discovery at the Van Target (“Van”) in the Company’s Decar

Nickel District (“Decar” or the “District”) in central British Columbia. These drill results expand

nickel mineralization approximately 1 km to the west of previous drilling, bringing the mineralized

footprint at Van to approximately 2 km in strike length by 1 km in width. Based on the first two

drilling campaigns completed to-date, the scale of nickel mineralization at Van is trending toward

being comparable to the Baptiste Deposit, which has a strike length of approximately 3 km with an

average width of approximately 1 km.

Highlights

• Drilling at Van has outlined strong nickel mineralization over a large footprint measuring

approximately 2 km2, with mineralization open both laterally and at depth

• Final set of Van drillholes reported herein (22VAN-013 to 22VAN-019) extend nickel

mineralization by approximately 1 km to the west from previously reported holes

o New drillhole 22VAN-016 intersected 426.9 m grading 0.127% DTR

Nickel (0.204% Total Nickel), starting at an approximate vertical depth of 9 m

below surface

• The highest grades to-date at Van are in the southwest portion of the target area, where

future step-out drilling is planned to test the further lateral and depth extension of

mineralization

“On the basis of the first two modestly-sized drill campaigns, the Van discovery has quickly

achieved an extensive footprint of broad and higher-grade near-surface nickel mineralization,

confirming the potential of the Decar Nickel District to host multiple large-scale deposits,”

commented Martin Turenne, the Company’s President, and CEO. “Van remains open for

expansion in multiple directions, most favourably to the south, southwest, and west, where the

encouraging trend of higher-grade nickel in outcrop and drill results to-date suggest the potential for

a significant extension of the already sizeable 2 km2 mineralized footprint. While FPX is primarily

focused the completion of a Baptiste preliminary feasibility study in the third quarter of 2023, we

look forward to future drilling at Van to confirm our hypothesis that Van could ultimately host a

significant near-surface nickel resource to complement the neighbouring Baptiste deposit.”

Link to view drill results within interactive 3D VRIFY model (for best results, view in full screen):

https://vrify.com/decks/12527?auth=8f2e9d49-0b9b-4e44-9fde-cfab2f50b9fc

Figure 1: Decar Nickel District, Baptiste Deposit and Van Target

Van Target Drilling

The results described herein are from a ten-hole, 2,504 m drill program completed in 2022 at the

Van Target, which is located 6 km north of Baptiste at a similar elevation, and also accessible via

active logging roads (see Figure 1). This drill program was designed to follow up on the inaugural

drilling in 2021, stepping out aggressively from the initial discovery area to define the extent of

mineralization up to 1 km south and 1.5 km west of the holes drilled in 2021. The results of the

first three holes from the 2022 program (22VAN-010 to 22 VAN-012) were previously reported in

the Company’s December 12, 2022 news release.

The nickel mineralization at the Van target, as defined by just 19 holes drilled in 2021 and 2022, is

approaching the scale of the Baptiste deposit, which measures 3 km along strike with an

approximate width of 1 km. Mineralization at the Van target remains open along strike to the west,

southwest, and south, and at depth, confirming the potential for Van to host a large-scale,

standalone nickel deposit.

Table 1 – Van Target Drill Hole Results

Hole

Intersections1 DTR Nickel

(%)2

Total Nickel

(%)2 From (m) To (m) Intersected

Width (m)

22VAN-013 18.7 221.0 202.3 0.019 0.151

22VAN-014 2.3 316.1 313.8 0.038 0.187

including 2.3 144.0 141.7 0.056 0.212

22VAN-015 21.2 298.2 277.0 0.079 0.187

including 21.2 186.0 164.8 0.089 0.192

and 186.0 298.2 112.2 0.064 0.179

22VAN-016 12.4 439.3 426.9 0.127 0.204

including 12.4 115.4 113.0 0.127 0.194

and 115.4 280.0 164.6 0.121 0.215

and 280.0 439.3 159.3 0.134 0.201

22VAN-017 13.1 178.3 165.2 0.087 0.191

including 13.1 116.0 102.9 0.100 0.179

22VAN-018 16.0 116.0 100.0 0.080 0.186

22VAN-019 8.4 106.0 97.6 0.035 Note3

1 The vertical depth (true width) of all quoted intersections in this news release is interpreted to be

approximately 75% of downhole depth.

2 All mineralized core samples are assayed for “Total Nickel” and “Davis Tube Recoverable

(“DTR”) Nickel.” “DTR Nickel” analyses measure only the magnetically recoverable nickel

hosted in medium- to coarse-grained awaruite (nickel-iron alloy), whereas the “total nickel”

analyses measures both magnetically and non-magnetically recoverable y nickel, the latter hosted in

fine-grained awaruite or nickel sulphide minerals. The Davis Tube method is a bench-scale

metallurgical test procedure which provides an estimation of magnetically recoverable nickel and is

the global industry-standard geometallurgical test for magnetic recovery operations and exploration

projects. See “Sampling and Analytical Method”, below.

3 Due to laboratory delays, Total Nickel assays for 22VAN-019 not available as of the date of this

news release.

The nickel mineralization intersected within 22VAN-013 through to 22VAN-019 is characterized

by disseminated, fine- to coarse-grained awaruite (nickel-iron alloy) mineralization hosted in

serpentinized ophiolitic rocks and is very analogous to the mineralization and geological setting at

the Baptiste Deposit.

22VAN-013 was collared 1.3 km west of 21VAN-005 and drilled to the north-northeast at minus 55

degrees. The hole encountered bedrock at 18.7 meters (approximately 14 m vertical depth) and

thereafter intersected 201.4 m of low-grade awaruite mineralization (averaging 0.019% DTR Ni) to

a downhole depth of 221 m.

22VAN-014 was collared 700 m north of 22VAN-013 and drilled to the north-northeast at minus 55

degrees. The hole encountered bedrock at 2.3 m downhole and thereafter intersected low-grade

awaruite mineralization (averaging 0.038% DTR Ni) to a downhole depth of 316.1 m.

22VAN-015 was collared 250 m northwest of 21VAN-006 and drilled to the north-northeast minus

55 degrees. The hole encountered bedrock at 21.2 m downhole and thereafter intersected 277 m of

medium-grade awaruite mineralization (averaging 0.079% DTR Ni), to a downhole depth of 298.2

m. Mineralization in this drillhole remains open at depth.

22VAN-016 was collared in the same location as 22VAN-015 and drilled to the southwest at minus

55 degrees. The hole encountered bedrock at 12 m downhole and thereafter intersected 426.9 m of

high-grade awaruite mineralization (averaging 0.127% DTR Ni) to a downhole depth of 439.3

m. Mineralization in this drillhole remains open at depth.

22VAN-017 was collared 500 m west along section from 22VAN-016 and drilled to the north-

northeast at minus 55 degrees. The hole encountered bedrock at 13.1 m downhole and thereafter

intersected 165.2 m of medium-grade awaruite mineralization (averaging 0.087% DTR Ni) to a

downhole depth of 178.3 m.

22VAN-018 was collared in the same location as 22VAN-017 and drilled to the south-southwest at

minus 55 degrees. The hole encountered bedrock at 16 m downhole and thereafter intersected 100

m of medium-grade awaruite mineralization (averaging 0.080% DTR Ni) to a downhole depth of

116 m. Mineralization in this drillhole remains open at depth.

22VAN-019 was collared 800 m south-southeast of 22VAN-013 and drilled to the north-northeast

at minus 55 degrees. The hole encountered bedrock at 8.4 m downhole. This drillhole intersected

low-grade awaruite mineralization (averaging 0.035% DTR Ni) and was terminated at 106 m.

Figure 2: Van Target Plan Map with Drillhole Collar Locations, Outcrop Samples and

Mineralized Footprint

Figure 3 – Van Target Cross Section with Assay Results for 22VAN-015 and 22VAN-016

Figure 4 – Van Target Cross Section with Assay Results for 22VAN-017 and 22VAN-018

Sampling and Analytical Method

HQ & NQ size drill core were quartered and halved, respectively, on-site using a diamond blade core

cutting saw. Drill core was sampled continuously downhole at nominal 4 m intervals except for post

mineralization dikes and non -mineralized rock types as they historically have had zero grade.

Samples were bagged and sealed with tamper proof tags and shipped to Activation Laboratories in

Kamloops, British Columbia, for sample preparation. Sample preparation involved crushing the

entire sample to 90% passing 2 mm, riffle splitting 250 g, and pulverizing the split to 95% passing

74 microns. Analytical work was completed at Activation Laborator ies in Ancaster, Ontario and

included lithium metaborate/tetraborate fusion ICP and DTR Ni analysis. DTR Ni analysis involved

processing a 30 g split of the pulp through a Davis tube magnetic separator as a slurry using a constant

flow rate of 400 millilitres per minute, a magnetic field strength of 3,500 Gauss, and a tube angle of

45 degrees to produce magnetic and non -magnetic fractions. The magnetic and non -magnetic

fractions were dried, weighed and the magnetic fraction was analyzed by fusion X-Ray Fluorescence

(“XRF”) for multiple elements, including nickel, cobalt, iron and chromium. The DTR 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.

QA/QC procedures involved the analysis of field and prepared duplicates, DTR replicates, insertion

of certified reference materials, and non -certified blanks to assess the accuracy and precision of the

Davis tube magnetic separation and XRF analysis that are used to determine the DTR Nickel content.

The Davis Tube method is a bench -scale metallurgical test procedure which provides an estimation

of magnetically recoverable nickel and is the global industry -standard geometallurgical test for

magnetic recovery for operations and exploration projects.

Erin Wilson, P. Geo., FPX Nickel’s Qualified Person under NI 43-101, has reviewed and approved

the technical content of this news release.

About the Decar Nickel District

The Company’s Decar Nickel District claims cover 245 km 2 of the Mount Sidney Williams

ultramafic/ophiolite complex, 90 km northwest of Fort St. James in central British Columbia. The

District is a two-hour drive from Fort St. James on a high-speed logging road.

Decar hosts a greenfield discovery of nickel mineralization in the form of a naturally occurring nickel-

iron alloy called awaruite (Ni 3Fe), which is amenable to bulk -tonnage, open-pit mining. Awaruite

mineralization has been identified in four target areas with in this ophiolite complex, being the

Baptiste Deposit, and the B, Sid and Van targets, as confirmed by drilling, petrographic examination,

electron probe analyses and outcrop sampling on all four targets. Since 2010, approximately US $28

million has been spent on the exploration and development of Decar.

Of the four targets in the Decar Nickel District, the Baptiste Deposit, which was initially the most

accessible and had the biggest known surface footprint, has been the focus of diamond drilling since

2010, with a total of 99 drillholes and 33,700 m of drilling completed. The Sid target was tested with

two holes in 2010 and the B target had a single hole drilled in 2011; all three holes intersected nickel-

iron alloy mineralization over wide intervals with DTR Nickel grades comparable to the Baptiste

Deposit. In 2021, the Company executed an inaugural drilling program at Van which returned results

comparable with the strongest results at Baptiste.

About FPX Nickel Corp.

FPX Nickel Corp. is focused on the exploration and development of the Decar Nickel District, located

in central British Columbia, and other occurrences of the same unique style of naturally occurring

nickel-iron alloy mineralization known as awaruite. For more information, please view the

Company’s website at www.fpxnickel.com or contact Martin Turenne, President and CEO, at (604)

681-8600 or [email protected].

On behalf of FPX Nickel Corp.