Mr. Robert Guzman reports

VEMA HYDROGEN AND FIRST ATLANTIC NICKEL & COBALT SIGN LOI TO DEVELOP ENGINEERED MINERAL HYDROGEN AT PIPESTONE XL AWARUITE PROJECT IN NEWFOUNDLAND

Vema Hydrogen has entered into a non-binding letter of intent (LOI) with First Atlantic Nickel & Cobalt Corp. to jointly develop engineered mineral hydrogen (EMH) at the Pipestone XL project, a 30-kilometre ultramafic belt in central Newfoundland. Under the LOI, the parties intend to establish a 50/50 joint venture to produce low-carbon hydrogen alongside First Atlantic's primary awaruite nickel-cobalt program. The partnership is intended to serve as a first-of-its-kind template for combining hydrogen production with critical mineral development at ultramafic sites, with the potential to attract co-located investment in clean fuels, ammonia and downstream industry.

"Vema's engineered mineral hydrogen is on the verge of delivering clean energy at a scale cost-competitive with hydrocarbons," said Dr. Douglas Wicks, strategic adviser to First Atlantic & Cobalt and former program director for ARPA-E's MINER program and geologic hydrogen portfolio. "Awaruite forms through serpentinization when hydrogen reduces nickel and iron, so its presence at Pipestone XL is a clear signature of a hydrogen-rich system. Vema's technology could engineer that same reaction for hydrogen production, and Pipestone XL is an ideal location due to its size, proximity to infrastructure and the potential for cost efficiencies in co-locating hydrogen production with nickel and cobalt mining. Having worked closely with Vema's founders since before the company's founding, and having seen firsthand how they developed the engineered approach to geologic hydrogen, I believe Pipestone XL represents a compelling opportunity to bring this technology to commercial scale."

Over the past 12 months, Vema has worked with First Atlantic to evaluate the Pipestone ophiolite complex, analyzing geological and geophysical data as well as infrastructure across the 30-kilometre belt. Laboratory testing of Pipestone rock samples at Vema's Orleans facility in France confirmed hydrogen production through stimulated serpentinization, indicating that the formation is well suited to EMH. Vema will leverage the experience gained in its established site in the Thetford ophiolite in Quebec, where Vema operates the world's first EMH project.

Newfoundland is a significant region for critical minerals and clean energy development, but exploration and mining remain energy-intensive. EMH produces hydrogen from iron-rich rock through naturally occurring geochemical reactions, with no grid electricity required. Locally produced hydrogen at Pipestone could, over time, support on-site energy needs for a large-scale nickel and cobalt mining district and related downstream industries.

"Vema operates the world's first engineered mineral hydrogen project at the Thetford ophiolite in Quebec. Rock samples collected during Vema's site visit to Pipestone XL were tested at their lab in Orleans, France, confirming the hydrogen generation potential of the ultramafic host rocks. Given the link between awaruite formation and hydrogen, we're excited about the potential for Vema's technology to maximize the value of our unique nickel-cobalt alloy project," said Adrian Smith, PGeo, chief executive officer of First Atlantic.

The collaboration also positions both companies to explore how locally produced hydrogen could reshape energy planning for remote industrial sites. By pairing EMH supply with critical mineral development, the partners aim to demonstrate a model that strengthens regional energy resilience while reducing reliance on long-distance fuel transport.

"Engineered mineral hydrogen is a promising new primary energy source for regions with iron-rich rock, like at Pipestone," said Pierre Levin, chief executive officer and co-founder of Vema Hydrogen. "Now with validated rock samples and permitting in place, we have a clear path to advance EMH at Pipestone and to expand the model across North America."

Awaruite (Ni3Fe) is a naturally occurring, magnetic nickel-iron-cobalt alloy (Ni-Fe-Co). The U.S. Geological Survey has identified awaruite as a potential solution to nickel concentrate shortages, noting that it is much easier to concentrate than pentlandite, the principal nickel sulphide. Its magnetic, metallic nature allows recovery by both magnetic separation and flotation, without the smelting, roasting or acid leaching that conventional nickel ores require.

About Vema Hydrogen

Vema Hydrogen is a producer of low-carbon hydrogen, offering a new path to a clean energy future. The company's unique technology, engineered mineral hydrogen, harnesses naturally occurring chemical reactions below the Earth's surface to produce high-purity hydrogen. By applying geoscience to derisk production and ensure predictable, cost-competitive output, Vema makes clean hydrogen a viable solution for large-scale industrial energy and baseload power needs.

About First Atlantic Nickel & Cobalt Corp.

First Atlantic Nickel & Cobalt is a critical mineral exploration company in Newfoundland & Labrador developing the Pipestone XL nickel-cobalt alloy project. The project spans the entire 30-kilometre Pipestone ophiolite complex, where multiple zones, including RPM, Alloy Max, Super Gulp, Atlantic Lake and Chrome Pond, contain awaruite (Ni3Fe), a naturally occurring magnetic nickel-iron-cobalt alloy of approximately 77 per cent nickel with no sulphur and no sulphides, along with secondary chromium mineralization. Awaruite's sulphur-free composition removes acid mine drainage (AMD) risks, while its unique magnetic properties enable processing through magnetic separation, eliminating the electricity requirements, emissions and environmental impacts of conventional smelting, roasting, or high-pressure acid leaching while reducing dependence on overseas nickel processing infrastructure.

Qualified person

Adrian Smith, PGeo, a director and the chief executive officer of First Atlantic is a qualified person as defined by National Instrument 43-101. The qualified person is a member in good standing of the Professional Engineers and Geoscientists Newfoundland and Labrador (PEGNL) and is a registered professional geoscientist (PGeo). Mr. Smith has reviewed and approved the technical information disclosed herein.

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