Mr. Martin Turenne reports

FPX NICKEL OUTLINES 2025 ACTIVITIES FOR THE BAPTISTE NICKEL PROJECT

FPX Nickel Corp. is outlining plans for advancement of the Baptiste nickel project in 2025. Following the completion of the robust 2023 preliminary feasibility study (PFS), the company's 2025 activities will build on strong progress made in 2024, prioritizing the advancement of further engineering studies, baseline environmental data collection, and continued positive engagement with first nations, and the provincial and federal governments in preparation for anticipated entry into the environmental assessment (EA) process in the second half of 2025.

"In 2025, FPX is focused on completing the key workstreams to initiate the EA process, which is the key critical path activity for the overall development of the Baptiste nickel project," commented Martin Turenne, FPX's president and chief executive officer. "We are committed to working in partnership with the multiple first nations communities connected to the project, including the proposed mine site and associated off-site infrastructure such as the powerline and access road. This collaborative approach has resulted in targeting a later entry into the EA process than originally planned, in recognition of the desire by the company, first nations, and the provincial and federal governments to align on the scope and design of the regulatory process in advance of initiating the EA."

Collaboration with provincial and federal governments

In September, 2024, FPX announced that the Province of British Columbia identified the Baptiste nickel project as the first project to be included in the province's new Critical Minerals Office (CMO) concierge service initiative, a provincial strategy action to enable the prioritization of critical minerals projects in British Columbia. The company is pleased to report that the CMO initiative is providing an excellent structure to pro-actively identify and address issues and opportunities ahead of the project's entry into the EA process.

The company has established a CMO working group with provincial officials; this working group meets on a regular basis, with the CMO providing:

• Concierge service for the Baptiste project with support for EA readiness, funding opportunities and regulatory processes;
• Project management support on prepermitting and preregulatory processes, including federal processes;
• Dedicated government resources to assist in the establishment of agreements with first nations.

FPX has benefited from policy support from the federal government through the Canadian critical minerals strategy as well as programmatic support through Natural Resources Canada's Critical Minerals Centre of Excellence throughout 2024. The company has begun early engagement with federal agencies in preparation of entering the EA process in a similar manner to that with B.C. through the CMO.

Collaboration with indigenous communities

FPX is committed to building upon relationships with indigenous communities through inclusive processes, providing resources to enable engagement and collaborative decision-making, empowering indigenous communities to advance self-determined goals, and optimizing long-term sustainable benefits and opportunities for communities connected to the project.

In 2025, the company will seek to continue to establish agreements with all potential participating Indigenous nations, which per the B.C. Environmental Assessment process, refers to all indigenous nations that will participate in the environmental assessment process of a proposed project, including both on- and off-site facilities.

FPX has initiated collaborative project design activities with first nations in advance of the EA process. In 2024, the company supported the formation of a first nations working group involving multiple nations to define a process for multilateral information sharing and collaborative decision making, with the objectives of working with the nations to assess and define the project, and to consider socioeconomic impacts and opportunities, in order to ensure local communities can maximize benefits from the project. In 2025, it is expected the first nations working group will establish one or more subtables which will enable focused reviews and consideration of various project parameters, such as mine design and socioeconomic considerations and opportunities.

Community engagement

FPX established a community office in 2024 in Fort St. James, which is located approximately 90 kilometres from the Baptiste project. The company hosts regular open houses in Fort St. James which offer the opportunity for local community members to learn about the company, its employees and the project. Open houses will continue on a quarterly basis in 2025, as well as participation by FPX representatives in other information-sharing opportunities with surrounding communities.

FPX's continuing community initiatives include the Community Contribution Program and Student Bursary Program. The objective of the Community Contribution Program is for FPX to make financial contributions and donations to drive meaningful positive impact in the communities where the company operates. FPX's Student Bursary Program has been established through Indspire, a Canadian indigenous-led charity that invests in the education of first nations, Inuit and Metis individuals through scholarships, mentorship and community-driven programs.

Cultural and environmental baseline studies

Cultural and environmental baseline studies have been continuing for the Baptiste nickel project since early 2022 and include surface water hydrology and water quality, wildlife, vegetation, fisheries and aquatics, and archeology programs. Continuing and expanded programs were completed in 2024 in preparation for the EA process. The 2025 program will continue to study the project area, and includes continuing wildlife, climate, hydrology, water quality and hydrogeology work.

The cultural and environmental studies for the project are being conducted by local indigenous-owned and -affiliated businesses in the project area. This approach targets the integration of indigenous perspectives into the scoping and execution of these studies and provides a strong collaborative basis for eventual consultation activities associated with the EA process.

It is anticipated that the company will have collected sufficient cultural and environmental baseline data to initiate the EA process by the second half of 2025.

Project design and engineering

In 2024, FPX established a variety of feasibility study (FS) initiatives, including the establishment of a technical advisory committee with representatives from FPX's three strategic investors (see the company's April 4, 2024, news release), the completion of a mineral processing pilot plant (see the company's April 30, 2024, news release), and the completion of a comprehensive value engineering program which tangibly improved both project value and definition (see the company's July 10 and July 30, 2024, news releases).

Metallurgy

The FS metallurgy program commenced in 2024, with key efforts including completion of a confirmatory, large-scale pilot testwork program for the concentrator, completion of pilot-scale hydrometallurgical testwork for the off-site refinery and advancement of ancillary testwork programs to bolster FS design criteria. In 2025, FPX will continue with the FS metallurgy program, with key focus areas to include variability testwork, flotation optimization testwork and further ancillary testwork to support FS definition.

Results to date from the FS metallurgy program, as previously reported, either validate or improve on the metallurgy basis as presented in the PFS. The FS testwork program is expected to run through to the first half of 2026, with material findings to be released as appropriate.

Feasibility study planning

In connection with the environmental and cultural baseline study works continuing at Baptiste since 2022, FPX will conduct the first phase of FS engineering field investigations in the summer of 2025. This year's program will focus on long-lead data collection that will support the EA process, as well as improved engineering definition within the open-pit footprint.

Approximately 2,800 metres of geomechanical drilling, hydrogeological drilling and condemnation drilling are planned around the project site in 2025, with most of the metreage focused within the open-pit footprint. The second phase of the FS engineering field investigation program will be undertaken in 2026 and will include resource infill drilling, further geomechanical drilling, further hydrogeological drilling and ex pit geotechnical drilling.

Following the completion of the second phase of engineering field investigations, the feasibility study is expected to be completed in 2027.

Andrew Osterloh, PEng, FPX's senior vice-president, projects and operations, FPX's qualified person under National Instrument 43-101, has reviewed and approved the technical content of this news release.

About the Baptiste nickel project

The company's Baptiste nickel project represents a large-scale greenfield discovery of nickel mineralization in the form of a sulphur-free, nickel-iron mineral called awaruite (Ni3Fe) hosted in an ultramafic/ophiolite complex. The Baptiste mineral claims cover an area of 408 square kilometres west of Middle River and north of Trembleur Lake, in central British Columbia. In addition to the Baptiste deposit itself, awaruite mineralization has been confirmed through drilling at several target areas within the same claims package, most notably at the Van target which is located six kilometres to the north of the Baptiste deposit. Since 2010, approximately $55-million (U.S.) has been spent on the exploration and development of Baptiste.

FPX has conducted mineral exploration activities to date subject to the conditions of agreements with first nations and keyoh holders.

About FPX Nickel Corp.

FPX Nickel is focused on the exploration and development of the Baptiste nickel project, located in central British Columbia, and other occurrences of the same unique style of naturally occurring nickel-iron alloy mineralization known as awaruite.

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