Mr. Adrian Smith reports

FIRST ATLANTIC NICKEL GRANTED PERMITS FOR PHASE 2 DRILL PROGRAM FOLLOWING RPM DISCOVER AT THE ATLANTIC NICKEL PROJECT

First Atlantic Nickel Corp. has been granted permits for its phase 2 drilling program and has begun the construction of a southern access trail at its 100-per-cent-owned Atlantic nickel project in Newfoundland. With these permits in place, the company has initiated preparations for phase 2 drilling and has commenced construction of the southern access trail. The phase 2 program aims to expand the strike length and width of the recently discovered RPM zone, focusing on extending mineralization farther east toward the historical Chrome Pond occurrence and north toward the Pipestone and Super Gulp targets. The goal of the phase 2 program is to define a larger area for resource drilling and prove continuity of nickel mineralization, highlighting the project's significant potential to host substantial volumes of material suitable for commercial mining within large-scale target areas on the project.

Highlights:

• Phase 2 drill and access trail permits granted: The Newfoundland and Labrador Mineral Lands Division has granted permits for the phase 2 drilling program and southern access trail, enabling faster and more cost-effective access to the RPM zone, Chrome Pond and Pipestone areas.
• Phase 2 preparations under way: Having secured the necessary permits, the company has started preparing for the phase 2 drilling program, including developing a southern access trail and relocating the camp to support coming exploration.
• Phase 2 drilling objective: The program will focus on widely spaced stepout drilling to delineate a larger area of strike length and width for future resource drilling.
• Phase 1 updates: The company anticipates providing updates on the remaining phase 1 drilling activities shortly, with initial phase 1 drill assays expected in the coming weeks.
• Phase 2 drill rig: The phase 2 drilling program will utilize a higher-power drill rig capable of using both HQ and NQ drill core, enhancing drilling speed and target depth. Additionally, the program will leverage a new core shack facility to expedite core processing.

"With permits for our phase 2 drilling program and southern access trail at the Atlantic nickel project now secured, First Atlantic Nickel is poised to advance drilling efforts and expand on the discovery at the RPM zone," stated Adrian Smith, chief executive officer of First Atlantic Nickel. "Our team has moved quickly to prepare for the phase 2 program, ensuring a smooth transition from planning to execution. Construction of the new access road is already under way, and we are in the process of relocating our camp to support the expanded drilling activities. These pro-active steps position us to accelerate exploration and development at the RPM zone and evaluate the significant potential within the 30-kilometre ophiolite trend. We are eager to begin phase 2 drilling and continue advancing the Atlantic nickel project."

Phase 2 exploration update

The company is pleased to report that permits for the phase 2 exploration program at the Atlantic nickel project have been granted by the Newfoundland and Labrador Mineral Lands Division.

Phase 2 drilling will target deeper mineralization, focusing on extending the strike length and width of the RPM zone. This phase will concentrate on the RPM zone and surrounding areas while exploring targets along the entire 30-kilometre ophiolite trend for awaruite. The goal of phase 2 is to delineate and expand known mineralization zones, potentially connecting the RPM and Chrome Pond areas, which are believed to represent a significant target for future resource drilling. The RPM zone remains open in all directions, and the company anticipates providing updates on remaining phase 1 stepout drilling to the north, with further updates expected shortly.

Efforts are also under way to relocate the camp to support coming drilling activities while using its newly established drill core processing and storage facility in Grand Falls-Windsor, Nfld., for this program. These logistical preparations are designed to ensure the smooth and efficient execution of the phase 2 drilling campaign. Exploration will continue to test targets within the 30-kilometre nickel trend, with additional holes being drilled as the company expands its operations northward.

RPM zone geology

The RPM zone is located within the expansive 30-kilometre highly magnetic ultramafic ophiolite belt, approximately 10 kilometres south of the Super Gulp target and 25 kilometres south of the historic drilling at Atlantic Lake, where significant mineralization was previously encountered in the drill core. This zone is characterized by wide intervals of heavily sheared and serpentinized peridotite ultramafic rock. The serpentinized peridotite within the drilled areas is heavily broken due to extensive shearing and faulting, which results from its vertical position within a subduction zone and its vertical emplacement, rather than being displaced and preserved as a massif. The vertical orientation of the crustal-scale ophiolite is highly favourable as it absorbs additional structural breakage and increases fluid porosity for serpentinization. This vertical orientation also provides significant depth potential for mineralized zones, where the nickel mineralization could extend to depths of one kilometre or more, allowing ample room for depth extensions.

The company will be available for meetings upon request from Jan. 20 to Jan. 23, 2025, during the VRIC (Vancouver Resource Investment Conference) and AME Roundup conferences. To schedule a meeting, please contact Rob Guzman at First Atlantic Nickel by phone at 1-844-592-6337 or by e-mail at rob@fanickel.com.

Awaruite (nickel-iron alloy -- Ni2Fe/Ni3Fe)

Awaruite, a naturally occurring sulphur-free nickel-iron alloy composed of Ni3Fe or Ni2Fe with approximately 75-per-cent nickel content, offers a proven and environmentally safer solution to enhance the resilience and security of North America's domestic critical mineral supply chain. Unlike conventional nickel sources, awaruite can be processed into high-grade concentrates exceeding 60-per-cent nickel content through magnetic processing and simple flotation without the need for smelting, roasting or high-pressure acid leaching. Beginning in 2025, the U.S. Inflation Reduction Act's (IRA) $7,500 electric vehicle (EV) tax credit mandates that eligible clean vehicles must not contain any critical minerals processed by foreign entities of concern (FEOCs). These entities include Russia and China, which currently dominate the global nickel smelting industry. Awaruite's smelter-free processing approach could potentially help North American manufacturers meet the IRA's stringent critical mineral requirements and reduce dependence on FEOCs for nickel processing.

The U.S. Geological Survey (USGS) highlighted awaruite's potential, stating: "The development of awaruite deposits in other parts of Canada may help alleviate any prolonged shortage of nickel concentrate. Awaruite, a natural iron-nickel alloy, is much easier to concentrate than pentlandite, the principal sulphide of nickel." Awaruite's unique properties enable cleaner and safer processing compared with conventional sulphide and laterite nickel sources, which often involve smelting, roasting or high-pressure acid leaching that can release toxic sulphur dioxide, generate hazardous waste and lead to acid mine drainage. Awaruite's simpler processing, facilitated by its amenability to magnetic processing and lack of sulphur, eliminates these harmful methods, reducing greenhouse gas emissions and risks associated with toxic chemical release, addressing concerns about the large carbon footprint and toxic emissions linked to nickel refining.

The development of awaruite resources is crucial, given China's control in the global nickel market. Chinese companies refine and smelt 68 per cent to 80 per cent of the world's nickel and control an estimated 84 per cent of Indonesia's nickel output, the largest worldwide supply. Awaruite is a cleaner source of nickel that reduces dependence on foreign processing controlled by China, leading to a more secure and reliable supply for North America's stainless steel and electric vehicle industries.

Investor information

The company's common shares trade on the TSX-V under the symbol FAN, on the American OTCQB exchange under the symbol FANCF and on several German exchanges (including Frankfurt and Tradegate) under the symbol P21.

About First Atlantic Nickel Corp.

First Atlantic Nickel is a Canadian mineral exploration company developing the 100-per-cent-owned Atlantic nickel project, a large-scale nickel project strategically located near existing infrastructure in Newfoundland, Canada. The project's nickel occurs as awaruite, a natural nickel-iron alloy containing approximately 75 per cent nickel with no sulphur and no sulphides. Awaruite's properties allow for smelter-free magnetic separation and concentration, which could strengthen North America's critical minerals supply chain by reducing foreign dependence on nickel smelting. This aligns with new U.S. electric vehicle IRA (Inflation Reduction Act) requirements, which stipulate that beginning in 2025, an eligible clean vehicle may not contain any critical minerals processed by a foreign entity of concern.

First Atlantic aims to be a key input of a secure and reliable North American critical minerals supply chain for the stainless steel and electric vehicle industries in the United States and Canada. The company is positioned to meet the growing demand for responsibly sourced nickel that complies with the critical mineral requirements for eligible clean vehicles under the U.S. IRA. With its commitment to responsible practices and experienced team, First Atlantic is poised to contribute significantly to the nickel industry's future, supporting the transition to a cleaner energy landscape. This mission gained importance when the United States added nickel to its critical minerals list in 2022, recognizing it as a non-fuel mineral essential to economic and national security with a supply chain vulnerable to disruption.

We seek Safe Harbor.