Mr. Robert Guzman reports

FIRST ATLANTIC NICKEL TO ACQUIRE STRATEGIC LAND CLAIM ADJACENT TO RPM ZONE, ADVANCING ATLANTIC NICKEL PROJECT

First Atlantic Nickel Corp. has entered into an agreement to acquire a 100-per-cent interest in the RPM-South claims, located immediately south of the recent discovery at the RPM zone, which is part of the 30-kilometre nickel trend at the Atlantic nickel project in Newfoundland. Future drill programs will aim to test for mineralization in all directions, including at depth, from the new discovery at the RPM target zone, which is no longer constrained by proximity to project boundaries. The claims are strategically important for future project infrastructure and mine development while also being prospective as they have the potential to host awaruite nickel mineralization extending southward from the RPM zone at depth.

Highlights:

• Strategic acquisition: The company will acquire licence No. 038152M (which consists of 12 claims), located immediately south of the RPM zone. This strategic acquisition is necessary for future project infrastructure and development. The new licence also enables the investigation of the potential southward continuation of awaruite nickel mineralization at depth within the RPM zone.
• Phase 1 drilling update: Phase 1 drill core processing has resumed following successful relocation to long-term drill core and processing facility.
• Assays and metallurgical testing: The initial phase 1 drill holes have been submitted for assays, while others are currently being processed. Metallurgical testing will commence upon receipt of the assay results.
• Phase 2 drilling plans: Phase 2 drill permits were submitted on Nov. 27, 2024, including plans for a direct vehicle access road into the RPM and Chrome Pond zones.
• Mineralization expansion potential: The RPM zone remains open for drilling in all directions, with mineralization appearing more substantial to the east and showing potential for further expansion along strike.
• No private placement financing: The company is not currently conducting or planning any private placement equity financings. First Atlantic has not engaged any third parties to solicit on its behalf. Any such inquiries are unauthorized and should be directed to the company.

For further information, questions or investor inquiries, please contact Rob Guzman at First Atlantic Nickel by phone at 1-844-592-6337 or by e-mail at rob@fanickel.com.

The claims will provide First Atlantic with a contiguous land package in the immediate vicinity of the RPM zone. The RPM zone extends south to the previous claim boundary and could potentially continue south into the newly acquired claims. This makes the acquisition a key asset for future project development and infrastructure as it lies in close proximity to known mineralization boundaries. Further expansion drilling will focus on defining the extent of mineralization and testing for depth as well as east, north and south extensions of the new discovery at the RPM target zone. This strategic acquisition enables comprehensive exploration and development planning as the project advances. The company remains dedicated to realizing the full potential of the Atlantic nickel project through robust exploration and aggressive drilling campaigns.

Phase 2 drill program

Phase 2 drilling will focus on targeting deeper mineralization and extending the strike length and width of the RPM zone. With permits submitted on Nov. 27, 2024, the company plans to explore targets along the entire 30-kilometre ophiolite trend, seeking awaruite, a sulphur-free nickel alloy. The phase 2 program aims 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 phase 1 stepout drilling to the north, with further updates expected shortly.

As the company awaits drill permits, it is currently planning the development of a drill access trail to the RPM zone for winter drilling. This access trail is included in the same permit application submitted for phase 2 drill permits. Efforts are also under way to relocate the camp to support coming drilling activities. The company plans to utilize the newly established drill core processing and storage facility in Grand Falls-Windsor, Nfld., for this program. These logistical preparations will ensure the smooth and efficient execution of the phase 2 drilling campaign. Exploration will continue to test the 30-kilometre nickel trend, with additional holes being drilled as the company expands its operations northward.

RPM zone geology: The RPM zone is situated 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 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, resulting from its vertical position within a subduction zone and vertical emplacement rather than being displaced and preserved as a massif. The vertical orientation of the crustal-scale ophiolite is highly favourable, absorbing additional structural breakage and increasing 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.

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.

Acquisition terms

The company entered into an asset purchase agreement dated Dec. 11, 2024, with a group of arm's-length parties, whereby the vendors agreed to sell to the company a 100-per-cent interest in and to the claims. The company has agreed to pay cash consideration of $20,000 and issue 750,000 common shares to the vendors at a deemed price of 14.25 cents per share. The consideration shares will be subject to voluntary escrow and released to the vendors over a period of 30 months from issuance. The claims are subject to a 2-per-cent NSR royalty, with the company retaining the right to buy back half the royalty (1-per-cent net smelter return royalty) for $1-million at any time prior to the commencement of commercial production at the property.

The purchase agreement and the issuance of the consideration shares are subject to approval by the TSX Venture Exchange. All security issuances will be subject to a statutory hold period of four months and one day from issuance in accordance with Canadian securities laws. No finders' fees will be paid in connection with this arm's-length purchase agreement.

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.

We seek Safe Harbor.