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FPX Nickel Reports Expanded Field Tests Demonstrating the Baptiste Deposit has Unique Potential to Become the Nickel Industry’s First Large-Scale, Carbon-Neutral Operation

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Vancouver, BC Canada V6E 2P4

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e-mail: [email protected]

FPX Nickel Reports Expanded Field Tests Demonstrating the

Baptiste Deposit has Unique Potential to Become the Nickel

Industry’s First Large-Scale, Carbon-Neutral Operation

Vancouver, June 9, 2021 – FPX Nickel Corp. (FPX-TSX.V) (“FPX” or the “ Company”) is pleased to

report the results of expanded field tests which demonstrate the potential for significant direct air carbon

capture in tailings at its Baptiste Project in the Decar Nickel District in central British Columbia . These

field tests, from Phase 2 of a two -part program conducted by researchers from the University of British

Columbia (“UBC”) funded by FPX and the Government of Canada, continue to demonstrate that the

Baptiste Project’s tailings can sequester significant quantities of carbon dioxide (“CO2”) when exposed to

air through a natural process of mineral carbonation.

Highlights

• The positive results of the 59-day Phase 2 field test (September to November 2020) described

herein expand upon the 24-day Phase 1 results (August 2020) described in the Company’s February

16, 2021 news release

• Significant rates of carbon sequestration were noted on a continuous basis throughout Phases 1 and

2 under all test conditions, with the highest rates of sequestration occurring in tailings subjected to

churning at regular intervals to encourage greater exposure of the crushed material to air

• Measurements during the combined 83-day Phase 1 and 2 field programs indicate capture of a total

of 5.8 grams of CO2 for each kilogram of crushed Baptiste tailings exposed to air by churning on a

regular basis to a depth of 12 cm

• Carbon sequestration rates observed during these Phases 1 and 2 (3.7 kg CO 2/m2 year) are

approximately 50% greater than the estimated average rates of capture under the dry conditions at

BHP’s Mount Keith nickel mine in Western Australia (2.5 kg CO2/m2 year; see Note 1)

Cautionary Statement: The test results described herein are preliminary in nature and may not be

representative of conditions or results in an operating environment, particularly as it pertains to the

representativeness of mineralization, moisture content , changes in weather conditions, process water

chemistry and tailings emplacement configuration , including the rate at which tailings are covered with

fresh material, among other para meters. There is no certainty that the results reported herein will be

realized in an operating environment. Further studies are recommended to expand the scale of testing to

better understand the potential for carbon sequestration to be realized in an operating environment.

“These positive results continue to demonstrate that Baptiste has unique potential to become the world’s

first large-scale, carbon-neutral nickel operation,” commented Martin Turenne, FPX Nickel’s President and

CEO. “The competitive advantage for FPX is the elevated content in our Baptiste deposit of the key, highly

carbon-reactive mineral brucite, which is present in higher concentrations at Baptiste than at typical

intrusive-hosted ultramafic nickel sulphide deposits. The elevated brucite content of the Baptiste deposit

therefore presents us with a unique opportunity to drive toward carbon neutrality at Baptiste, and we look

forward to expanded testing in 2021 to deliver further evidence to investors and potential strategic partners

alike.”

The two-phase test program builds on more than a decade of research on technologies that maximize the

reaction between CO 2 and brucite (mineral form of magnesium hydroxide) present in the Baptiste mine

tailings. In a natural process called carbon mineralization, CO 2 reacts with brucite in the tailings, binding

the CO2 in a benign, solid magnesium carbonate which is stable on a geological time scale.

The test work summarized herein was completed on a representative Baptiste mineralized composite of

approximately 300 kilograms comprised of core sample reject material crushed to 50-360 µm, consistent

with the tailings size anticipated during mine operation. Analysis of the core material indicated 1-2 wt%

content of brucite, a range consistent with the average brucite content of the Baptiste deposit. The Phase 1

field program was conducted at an outdoor site in Prince George from August 5-29, 2020. On completion

of Phase 1 testing in August, the tailings were moved to Vancouver and a second stage was conducted

outdoors from September 14 to November 12, 2020.

The tailings sample was divided into splits of 37 kilograms loaded to a depth of 12 centimeters into eight

cells in two large containers , with local water added to achieve a moisture content of approximately 15

wt%. One container was exposed to local weather conditions (including precipitation and solar radiation),

while the second was p laced under a shade tent to control the water content of the tailings , which was

maintained approximately constant by the manual addition of water from time to time. Large rainfall events

had no noticeable impact on the rate of CO 2 capture, which is consi dered a positive finding given the

precipitation rates in central British Columbia.

Two physical manipulations, churning and aeration, were each applied to four of the eight cells, with the

four remaining cells left undisturbed as controls. In the churned cells, the tailings were manually overturned

to a depth of 12 c m; churning occurred once per day during the Phase 1 test, and on a n approximately

weekly basis during Phase 2. In the aerated cells, narrow holes with a diameter of 1 cm were bored on a 5

cm grid from the surface to the bottom of the cell to encourage a greater exposure of air to the crushed

material. Two methodologies were employed to confirm the amount of carbon sequestered during the test

program, as described in the Company’s February 16, 2021 news release.

In the cells churned to a depth of 12 cm at regular intervals, carbon absorption measurements demonstrate

capture of 5.8 grams of CO2 for each kilogram of crushed Baptiste tailings in the cell over the course of the

combined 83-day Phase 1 and 2 programs, with no addition of new tailings. Based on this amount of carbon

sequestration, it is estimated that only approximately 45 % of the brucite reacted with carbon dioxide,

leaving 55% of the brucite available for reaction and suggesting future opportunities to optimize the reaction

between tailings and CO2 in air to achieve even higher rates of carbon capture.

In the control and aerated cells, an average of 2.5 grams of CO2 was captured for each kilogram of crushed

Baptiste tailings in the cells over the course of combined Phase 1 and 2 trials, representing approximately

43% of the sequestration rate observed in the churned cells.

Carbon sequestration rates observed in the churned cells during Phases 1 and 2 (3.7 kg CO 2/m2 year) are

approximately 50% greater than the estimated average rates of capture at BHP’s Mount Keith nickel mine

in Western Australia (2.5 kg CO2/m2 year), where it is estimated that approximately 39,800 tonnes/year of

atmospheric CO2 are being trapped and stored in tailings (see Note 1).

Note 1: International Journal of Greenhouse Gas Control , “Offsetting of CO 2 Emissions by Air Capture

in Mine Tailings at the Mount Keith Nickel Mine, Western Australia: Rates, Controls and Prospects for

Carbon Neutral Mining”, Wilson et al., 2014

Next Steps

In addition to the 2020 direct air capture test results described herei n, UBC researchers have conducted

additional testing to assess the rate and quantity of carbon capture from the injection of concentrated CO2

gas into Baptiste tailings. The Company expects to report the findings of the concentrated injection test

program in the coming weeks.

The Company is further expanding the size and scope of carbon sequestration testing , with two direct air

capture experiments to commence in the third quarter of 2021:

1) Six-month experiment at a location in Vancouver on approximately 2.4 tonnes of tailings material,

or approximately eight times the scale of the 2020 experiment

2) 1-year experiment at a location in central British Columbia on approximately 300 kg of tailings

material, designed to better understanding the longer -term carbon sequestration potential of

undisturbed tailings.

These two experiment s will build off the 2020 experiment and address several conceptual operating

parameters, including:

• Expanding the tonnage footprint to understand sequestration performance at varying depths of

tailings deposition;

• Building an enhanced understanding of the impact of tailings water content and air temperature

(including freezing temperature) on the rate of carbon sequestration;

• Improving the understanding of the effect of churning frequency on the rate of carbon capture.

Dr. Peter Bradshaw, P. Eng., FPX’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 km2 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 (Ni3Fe), which is amenable to bulk-tonnage, open-pit mining. Awaruite mineralization

has been identified in four target areas within this ophiolite complex, being the Baptiste Deposit, and the

B, Sid and Van targets, as confirmed by drilling in the first three plus petrographic examination, electron

probe analyses and outcrop sampling on all four. Since 2010, approximately US $24 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 82 holes and over 31,000 metres 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. The Van target was not

drill-tested at that time as rock exposure was very poor prior to more recent logging activity.

As reported in the current NI 43-101 resource estimate, having an effective date of September 9, 2020, the

Baptiste Deposit contains 1.996 billion tonnes of indicated resources at an average grade of 0.122% DTR

nickel, containing 2.4 million tonnes of nickel, plus 593 million tonnes of inferred resources with an average

grade of 0.114% DTR nickel, containing 0.7 million tonnes of nickel, both reported at a cut -off grade of

0.06% DTR nickel. Mineral resources are not mineral reserves a nd do not have demonstrated economic

viability.

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.

"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 uncertainties, as disclosed in the Company's

periodic filings with C anadian 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 re sponsibility for the

adequacy or accuracy of this release.