Mr. Mark Selby reports

CANADA NICKEL SIGNS MOU WITH RWE SUPPLY & TRADING TO SUPPORT COMMERCIALIZATION OF LOW-CARBON STEEL IN EUROPE AND NORTH AMERICA

Canada Nickel Company Inc. has formed a strategic commercial partnership with RWE Supply & Trading GmbH (RWEST), a leading global energy and carbon trading firm, to support commercialization of low-carbon intermediate stainless and alloy steel products from Canada Nickel's wholly owned downstream subsidiary, Net Zero Metals, utilizing feeds from Canada's Nickel's Crawford nickel project. The partnership gives Canada Nickel access to RWEST's European and U.S. customer base, deep carbon and CBAM (Carbon Border Adjustment Mechanism) expertise, and structuring and trading capabilities -- positioning Net Zero Metals' low-carbon steel ahead of accelerating European Union carbon compliance costs.

Highlights:

• Memorandum of understanding with RWE Supply & Trading (RWEST) to support commercialization of low-carbon stainless and alloy steel expected to be produced from Canada Nickel's Net Zero Metals subsidiary;
• RWEST brings European and U.S. market access, CBAM expertise and carbon-trading capabilities;
• MOU focus on semi-finished steel, alloys and stainless products with long-term offtake structures;
• Implementation of EU CBAM expected to increase competitiveness of Ontario's low-carbon steel;
• Definitive agreement targeted within 2026.

Mark Selby, chief executive officer and director of Canada Nickel Company, said: "I am very excited to work with this global leader whose strategic focus on the energy transition aligns directly with what we are building at Net Zero Metals. RWEST's reach across European and U.S. markets, combined with their deep carbon-trading and CBAM expertise, makes them the ideal partner to support the commercialization of our low-carbon steel and help us maximize value from the low carbon attributes of both our nickel and steel products."

Mr. Selby continued: "The timing of this strategic partnership could not be better. Implementation of CBAM driving higher EU carbon costs combined with persistent energy price volatility in Europe are creating real demand for stable energy, low-carbon steel supply. Ontario's stable, low-carbon and renewable energy gives us a structural cost advantage that only grows as CBAM carbon costs rise through the decade. We look forward to advancing this relationship to a definitive agreement before year-end."

Marc Milligan of RWE Supply & Trading said: "Canada Nickel's potential to support significant low-carbon stainless and alloy intermediate steel production offers an attractive solution for the European energy transition. Low-carbon steel is essential for the planned expansion of offshore and onshore wind capacities and high-quality low-carbon nickel is essential for battery production to support battery storage development in the EU. This partnership fits squarely with our long-term strategy to help decarbonize the European industry. We look forward to working with the Canada Nickel team to unlock value from its low carbon steel and nickel products and we see significant growth potential for developing sustainable and reliable metal supply chains into the EU."

Strategic commercial relationship

Under the MOU, signed on June 1, 2026, the companies will undertake joint identification and prioritization of target customers in the EU and the United States. They will develop product positioning and sales strategy in respect of semi-finished steel, alloys and stainless products, including long-term offtake structures and delivered product solutions. Given its deep expertise in carbon trading, RWEST will also support Canada Nickel's CBAM positioning and compliance strategy, and the translation of Canada Nickel's carbon advantage into commercial value for both Canada Nickel and its customers. RWEST is also expected to provide further support to Canada Nickel's access to export credit agencies, including German and EU export credit agencies, and other EU financing groups.

The companies are targeting a definitive agreement later this year.

About Canada Nickel Company Inc.

Canada Nickel is advancing the next generation of nickel sulphide projects to deliver nickel required to feed the high-growth electric vehicle and stainless steel markets. Canada Nickel has applied in multiple jurisdictions to trademark the terms NetZero Nickel, NetZero Cobalt and NetZero Iron and is pursuing the development of processes to allow the production of net-zero carbon nickel, cobalt and iron products. Canada Nickel provides investors with leverage to nickel in low-political-risk jurisdictions. Canada Nickel is currently anchored by its 100-per-cent-owned flagship Crawford nickel-cobalt sulphide project in the heart of the prolific Timmins-Cochrane mining camp.

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