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FPX Nickel Produces Battery-Grade Nickel Sulphate and Successfully Completes Pilot-Scale Refinery Testwork

Metallurgy & Processing

Suite 320 – 1155 West Pender Street

Vancouver, BC Canada V6E 2P4

Tel: 604.681.8600

e-mail: [email protected]

FPX Nickel Produces Battery-Grade Nickel Sulphate and

Successfully Completes Pilot-Scale Refinery Testwork

Vancouver, October 15, 2024 – FPX Nickel Corp. ( TSX-V: FPX, OTCQB: FPOCF ) (“FPX” or the

“Company”) is pleased to announce that it has successfully completed pilot-scale hydrometallurgy refinery

testwork and produced battery-grade nickel sulphate from its Baptiste Nickel Project (“Baptiste” or the

“Project”). Following on the Company’s successful 2023 bench-scale hydrometallurgy refining testwork

program, the 2024 pilot plant represents a significant step forward in demonstrating the technical maturity

of refining Baptiste’s awaruite concentrate. This milestone marks completion of the campaign funded in

part by a grant from Natural Resources Canada (“ NRCan”) under the Government of Canada’s Critical

Minerals Research, Development and Demonstration (“ CMRDD”) program , which is advancing the

commercial readiness of processing technologies to support the development of Canada’s EV battery

material supply chain.

Highlights

• Successful Pilot-Scale Testwork: Continuous pilot-scale testing of all leaching unit operations

confirmed the refinery flowsheet and generated the expected low-impurity leach solution for

downstream purification and crystallization testwork

• Flowsheet Optimization: Testwork has led to flowsheet improvement through the removal of unit

operations in the leaching area that proved redundant during continuous, steady-state piloting

• Production of Battery-Grade Nickel Sulphate: Bench-scale testing of solution purification and

crystallization unit operations further demonstrate FPX Nickel’s ability to produce battery -grade

nickel sulphate crystals from Baptiste’s awaruite concentrate

“The results of our hydrometallurgy refinery pilot plant testwork confirm the technical advantages of

awaruite nickel mineralization to produce battery -grade nickel sulphate, further demonstrating the

opportunity to develop a more streamlined nickel supply chain entirely in Canada,” commented Andrew

Osterloh, FPX Nickel’s Senior Vice-President, Projects & Operations. “Baptiste would represent an almost

50% increase to Canada’s current annual nickel production, all without adding to or displacing any of

Canada’s nickel smelting or complex refinery capacity, thereby pioneering a uniquely low-cost, low-carbon

link between mining and EV battery production. The results from our p ilot plant testwork are currently

being incorporated into our Awaruite Refinery Scoping Study, which will contain a detailed evaluation of

capital, operating costs and the overall economics of the awaruite refinery; the Study remains on track for

completion in the first quarter of 2025.”

Figure 1 – Battery-Grade Nickel Sulphate Crystals Produced from Baptiste’s Awaruite Nickel

Concentrate

Background

As reported in the Company’s news release dated April 30, 2024, FPX operated a mineral processing pilot

plant earlier this year and successfully generate d awaruite concentrate to feed a downstream

hydrometallurgical refining pilot plant (the “ 2024 Hydromet Program”). FPX re -engaged Sherritt

Technologies Ltd. to conduct the 2024 Hydromet Program, building on Sherritt’s successful completion of

the previous bench-scale hydrometallurgical testwork in 2023 (the “2023 Hydromet Program”, described

in the Company’s May 17, 2023 news release).

Building on the 2023 Hydromet Program, the 2024 Hydromet Program aimed to further demonstrate the

viability of FPX’s refinery flowsheet under pilot-scale and continuous operating conditions. Additionally,

the 2024 Hydromet Program also aimed to validate the new ammonia -based purification flowsheet , as

discussed in the Company’s news release dated September 16, 2024.

Hydrometallurgical Refinery Pilot Plant

The 2024 Hydromet Program was conducted in two phases. Phase 1 consisted of continuous, pilot -scale

processing of all unit operations in the leaching area as outlined in Figure 2. Phase 2 consisted of batch,

bench-scale processing of all unit operations in the purification and crystallization area. A portion of leach

solution produced during Phase 1 has been reserved for future continuous, pilot-scale processing of the

purification and crystallization area , ensuring the final refinery strategy is supported by purification and

crystallization requirements defined in collaboration with FPX Nickel’s downstream partners.

Figure 2: Awaruite Refinery – Updated Block Flow Diagram

Leaching Area

Continuous, pilot-scale leaching ran for five days and was fed with the high -grade (60% Ni) awaruite

concentrate produced during the earlier mineral processing pilot plant. The flowsheet configuration and

operating conditions were the same as the 2023 Hydromet Program, with pressure leaching conducted at a

moderate temperature (150°C) and pressure (750 kPag). The key performance metrics established at the

start of the pilot plant campaign were to o btain high overall nickel and cobalt leach extractions while

generating a final leach solution with high nickel and low impurity concentrations.

These key performance metrics are summarized in Table 1 , which also presents the basis of the previous

economic study (see the Company’s news release dated September 6, 2023). In the pressure leach, excellent

nickel and cobalt overall leach extractions were achieved at 99.3% and 97.9%, respectively. These high

extractions include the unoptimized start-up period, highlighting the robustness of the leach system.

In the atmospheric leach (which utilizes awaruite to neutralize and purify the pressure leach solution),

excellent impurit y removal was achieved , including the near-complete removal of iron, aluminum,

chromium and copper. The final leach solution contained greater than 100 g/L nickel, which is very high

by industry standards and will reduce the capital and operating costs for downstream purification and

crystallization unit operations. The impurity elements of zinc, manganese, and calcium are all low due to

the inherent low concentration of these impurities in Baptiste’s awaruite concentrate.

Table 1 – Leaching area key performance metrics achieved during piloting

Pilot Plant

Results

Previous Study

Basis

Overall Leach Extractions

Nickel (%) 99.3 99.3

Cobalt (%) 97.9 99.5

Final Leach Solution Composition

pH 5.5 >4.5

Nickel (g/L) 104 95

Cobalt (g/L) 2.1 1.5

Magnesium (g/L) 1.6 1.5

Iron (g/L) <0.003 <0.003

Aluminium (g/L) <0.003 <0.003

Chromium (g/L) <0.003 <0.003

Copper (g/L) <0.003 <0.05

Zinc (g/L) 0.01 <0.05

Manganese (g/L) 0.01 <0.05

Calcium (g/L) 0.01 <0.05

In addition to the core leaching operations, the leaching area also includes two smaller circuits to manage

build-up of certain trace elements , including copper removal and aluminum/ chromium removal. The

copper removal circuit, which removes copper by a cementation process, was successfully operated during

piloting. Aluminum and chromium were both shown to deport with pressure leach residue, supporting the

deletion of this slipstream removal circuit, thereby simplifying the overall leach flowsheet.

Additionally, solid-liquid separation characterization testing was completed on both pressure leach and

atmospheric leach residues, with reasonable settling and filtration rates observed for both . These results

will inform dewatering equipment sizing and specifications in the ongoing Awaruite Refinery Scoping

Study.

Purification and Crystallization

A portion of the bulk solution generated from the leaching area pilot was processed in bench -scale batch

testing through cobalt solvent extraction, nickel solvent extraction, and nickel sulphate crystallization. This

purification scheme is simpler relative to that required to process other nickel intermediates such as MHP

and MSP, with this simplicity made possible by the low impurities contained in , and the neutralization

properties of, the awaruite concentrate.

In order to validate the new purification flowsheet developed during Refinery Value Engineering studies

(see the Company’s news release dated September 16, 2024), solvent extraction operations utilized

ammonia as the neutralizing reagent (rather than caustic, which was used in the 2023 Hydromet Program).

Along with lower operating costs, the change to an ammonia-based flowsheet allows for the production of

an ammonium sulphate byproduct , a valuable fertilizer product, instead of the previous sodium sulphate

waste product . The new ammonia -based purification unit operations achieved similar successful

performance and results as those achieved during the 2023 Hydromet Program, with the produced crystals

(see Figure 1 and Table 2) continuing to meet the strict target specifications for battery applications.

Table 2 – Baptiste Nickel Sulphate Crystal Quality vs. Target Specification

Element Units Nickel Sulphate Crystals

Baptiste Testwork Target Specification1

Nickel wt% >22 >22

Aluminum ppm <1 <5

Arsenic ppm <1 <2

Calcium ppm <1 <5

Cadmium ppm <1 <1

Cobalt ppm 1 <50

Chromium ppm <1 <3

Copper ppm <1 <3

Iron ppm <1 <3

Potassium ppm <1 <10

Magnesium ppm 3 <5

Manganese ppm <1 <5

Sodium ppm <10 <20

Lead ppm <1 <2

Silicon ppm <5 <10

Zinc ppm 3 <5

Note 1: Based on review of industrially available products and battery producers’ requirements

Path Forward

With the completion of the hydrometallurgical testwork reported herein, the Company has completed all

testing associated with the CMRDD funding provided by NRCan . Refinery testing results are being

incorporated into the ongoing Awaruite Refinery Scoping Study, the results of which will be available in

the first quarter of 2025.

Qualified Person

The metallurgical information in this news release has been prepared in accordance with Canadian

regulatory requirements set out in National Instrument 43 -101: Standards of Disclosures for Minerals

Projects of the Canadian Securities Administrators (“NI 43-101”). Testwork was supervised, reviewed, and

verified by Kyle D. Marte, P.Eng., FPX Nickel’s Principal Metallurgist and a “Qualified Person” as defined

by NI 43-101.

About the Baptiste Nickel Project

The Company’s Baptiste Nickel Project represents a large -scale greenfield discovery of nickel

mineralization in the form of a sulphur -free, nickel -iron mineral called awaruite (Ni 3Fe) hosted in an

ultramafic/ophiolite complex. The Baptiste mineral claims cover an area of 408 km2, west of Middle River

and north of Trembleur Lake, in central British Columbia. In addition to the Baptiste Deposit itself,

awaruite mineralization has been confirmed through drilling at several target areas within the same claims

package, most notably at the Van Target which is located 6 km to the north of the Baptiste Deposit. Since

2010, approximately US $30 million has been spent on the exploration and development of Baptiste.

The Baptiste deposit is located within the territories, keyohs, and consultative boundaries of the Tl’azt’en

Nation, Binche Whut’enne, Yekooche First Nation, and Takla Nation.

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

https://fpxnickel.com/ or contact Martin Turenne, President and CEO, at (604) 681 -8600 or

[email protected].

On behalf of FPX Nickel Corp.

“Martin Turenne”

Martin Turenne, President, CEO and Director

Forward-Looking Statements

Certain of the statements made and information contained herein is considered “forward -looking

information” within the meaning of applicable Canadian securities laws. These statements address future

events and conditions and so involve inherent risks and u ncertainties, as disclosed in the Company's

periodic filings with Canadian securities regulators. Actual results could differ from those currently

projected. The Company does not assume the obligation to update any forward-looking statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the

adequacy or accuracy of this release.