Mr. Tony Guo reports

NICKEL NORTH ENTERS INTO AN AGREEMENT TO OPTION UP TO 100% INTEREST IN THE HIGH-GRADE HAWKRIDGE COPPER/NICKEL PROJECT IN QUEBEC

Further to its news release of Aug. 13, 2024, Nickel North Exploration Corp. has entered into an option agreement with 1844 Resources Inc., pursuant to which Nickel North has granted options to the company to acquire up to a 100-per-cent interest, free and clear of all encumbrances, except for an underlying net smelter return royalty, in the Hawk Ridge property in Quebec. Certain claims comprising the Hawk Ridge property are subject to a 3-per-cent underlying net smelter return royalty, which is subject to the right of repurchase as provided in the underlying agreement. A copy of the option agreement will be posted to the company's SEDAR+ profile. The option agreement is subject to the approval of the TSX Venture Exchange.

The transactions contemplated under the option agreement do not involve any non-arm's-length party as such term is defined in the policies of the exchange and no finders' fees are payable by Nickel North.

Option agreement

Upon execution of the option agreement, Nickel North received from 1844 a non-refundable cash payment of $12,000. Additionally, within five business days of the effective date that is defined in the option agreement as two business days following receipt of the final acceptance by the exchange, 1844 will be required to pay to Nickel North $200,000 and issue to Nickel North five million common shares in the capital of 1844.

First option

Pursuant to the terms of the option agreement, the company granted 1844 an option to earn an 80-per-cent interest in the Hawk Ridge property by:

• Paying to the company in cash:
  1. $250,000 on the date that is the one-year anniversary of the effective date;
  2. $250,000 on the date that is one year following the first anniversary;
  3. $250,000 on the date that is one year following the second anniversary;
  4. $250,000 on the date that is one year following the third anniversary;
  5. $300,000 on the date that is one year following the fourth anniversary;
• Issuing to the company:
  1. Three million EFF shares on the first anniversary;
  2. Three million EFF shares on the second anniversary;
  3. Three million EFF shares on the third anniversary;
  4. Three million EFF shares on the fourth anniversary;
  5. Four million EFF shares on the fifth anniversary;
• Incurring on the Hawk Ridge property:
  1. $500,000 of exploration expenditures before the first anniversary;
  2. $1-million of exploration expenditures before the second anniversary;
  3. $1.5-million of exploration expenditures before the third anniversary;
  4. $1.5-million of exploration expenditures before the fourth anniversary;
  5. $1.5-million of exploration expenditures before the fifth anniversary.

A summary of the foregoing option payments is included in the table below.

Second option

Additionally, the company granted to 1844 a further option following 1844's exercise of the first option to earn the remaining 20-per-cent interest in the Hawk Ridge property, subject to the underlying royalty and the NSR royalty (as defined below), by paying to Nickel North an additional $2-million before the date that is one year following the fifth anniversary. If 1844 exercises the second option, 1844 will grant to Nickel North a 2-per-cent net smelter return royalty from all mineral production from the Hawk Ridge property.

About Nickel North Exploration Corp.

Nickel North Exploration is a Canada-based exploration company focused on defining a copper/nickel/cobalt/platinum group element mineral resource at its Hawk Ridge project in Northern Quebec. The board of directors, adviser committee and management team are experienced, successful mine finders. The property consists of a 50-kilometre-long belt of strong magmatic copper/nickel/cobalt/platinum group element occurrences covering 179.67 square kilometres. Quebec is a mining-friendly jurisdiction. Nickel North Exploration is a conscientious corporate citizen that maintains good relations with local Inuit communities and is committed to sustainable development.

Nickel North Exploration was identified as a key player in the critical and strategic mineral value chain by Quebec's Ministry of Economics and Innovation (MEI) in 2021 (Quebec Plan for the Development of Critical and Strategic Minerals 2020-2025, which is part of Quebec's Plan for the Development of Critical and Strategic Metals (QPDCSM) and aims to stimulate the exploration and mining of strategic and critical minerals and their transformation and recycling.

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