Company Announcements

VANCOUVER, British Columbia, Aug. 27, 2024 (GLOBE NEWSWIRE) -- First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to provide an update on significant progress made at its wholly-owned Atlantic Nickel Project in central Newfoundland, Canada (the "Project" or the "Atlantic Nickel Project"). The Company has successfully completed the Phase 1 road upgrade program which included the installation of three bridges.   Additionally, an all-weather camp has been established on the project site, and the upgraded road and bridges will ensure reliable access throughout the year. District-scale awaruite nickel sampling program is well underway along the extensive 30 km nickel-bearing trend, with an expanded crew to accommodate the increased size and scale of the program. Initial samples have been sent for analysis.

Highlights

• Road and infrastructure upgrades completed which include the installation of three new bridges providing reliable year-round road access to the Project and the establishment of a camp on the property suitable for year round use.
• Logistical planning and preparations underway for the 2024 drilling program, with drilling set to commence in the coming month.
• Dr. Ron Britten, a renowned nickel expert, on-site to aid in the discovery of significant new zones of mineralization.
• District-scale awaruite nickel sampling program in progress with an expanded ground team to cover the extensive 30 km nickel-bearing trend accelerating exploration efforts.
• USGS has identified awaruite as a solution to nickel concentrate shortages (in North America) due to its easier concentration compared to nickel sulfide minerals¹.
• Project site visit video released, showcasing the progress and potential of the Atlantic Nickel Project https://www.fanickel.com/atlantic-video.
• District-wide airborne LiDAR survey initiated, using advanced data collection and processing to identify outcrops, map geology and structures through vegetation across the 30 km nickel trend centered on the Atlantic Nickel Project.

Adrian Smith, CEO of First Atlantic, remarks, "We are thrilled with the advancements made at our unique nickel alloy project, including establishing an all-season camp located on the Project site. The completion of road upgrades and the installation of heavy-duty bridges enables us to transport heavy equipment to the project year-round. The establishment of a road-accessible camp on the project site allows for efficient operations while reducing overall costs. Additionally, we're implementing a cutting-edge LiDAR survey with high-resolution orthophotos across the 30 km district trend. This technology will significantly enhance our ability to identify key geological structures and discover new outcrops within the mineralized trend. This is paired with the current expanded field-team concentrating on intensive sampling and mapping to extend the mineralization surrounding our four primary target areas within this substantial nickel belt. This crucial work is paving the way for our upcoming, fully funded, maiden drilling program".

Atlantic Nickel Project Summary

• Awaruite (nickel-iron alloy) identified in rocks, tills, and drill core samples over a 30 km trend.
• High nickel anomalies (up to 3300 ppm in rocks, 4260 ppm in soils) persist over 30 km, correlating with ultramafic units and magnetic surveys; 20% of rock samples average higher than 2000 ppm Ni.
• Field crew working on expanding on 4 priority large target areas identified for immediate follow-up, including Atlantic Lake, Gulp Pond, Pipestone, and Chrome Pond.
• Strategically located in central Newfoundland, the Atlantic Nickel Project benefits from year-round road access, proximity to a hydroelectric dam, a temperate climate, and flat terrain.

Figure 1: Images showing infrastructure upgrades including road clearing, culverts, and multiple bridge installations giving year-round access to the Project. Bottom right, phase 1 camp established on the Atlantic Nickel Project site.

Figure 2: Fixed-wing aircraft equipped with LiDAR sensor and high-resolution camera for orthophotos.

LiDAR is a remote sensing technology that uses laser pulses to create detailed 3D maps of the Earth's surface, revolutionizing large-scale geological exploration for mining. It enables geologists to efficiently map and analyze large areas with high accuracy, revealing subtle geological features crucial for mineral prospecting. By digitally removing vegetation and creating bare-earth models, LiDAR exposes hidden structures like faults, folds, and mineralized zones that are difficult to detect through traditional methods. This high-resolution topographic data enhances the identification of potential ore deposits, improves structural analysis of rock formations, and optimizes drill target selection in mining exploration projects. 

First Atlantic will utilize the LiDAR data gathered across the 30km mineralized trend to interpret geological structures, aid in geological mapping and identify previously undiscovered outcrops within the Project area.

Awaruite (Nickel-iron alloy Ni2Fe, Ni3Fe)

Awaruite, a naturally occurring nickel-iron alloy composed of Ni3Fe or Ni2Fe, is a proven and environmentally safer solution to North America's domestic critical nickel supply shortage. Unlike conventional nickel sources, awaruite can be processed into high-grade concentrates exceeding 60% nickel content without the need for smelting². This is particularly significant given the lack of smelting capacity in North America, which is largely controlled by China, and the Inflation Reduction Act's requirement that critical minerals in batteries be extracted or processed domestically or in countries with U.S. free trade agreements by 2025. As The Brookings Institution notes³, "Even if the U.S. and EU were to dig more minerals out of the ground, many of these minerals would need to be shipped overseas for concentrating, refining, and smelting without significant increases in U.S. and European mineral refining and smelting capacity".

Figure 3: USGS quote on Awaruite as a solution for nickel concentrate demand in North America.

The U.S. Geological Survey (USGS) highlighted awaruite's potential, stating⁴, "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 sulfide of nickel". Awaruite's unique properties enable cleaner and safer processing compared to conventional sulfide & laterite nickel sources, which often involve smelting or high pressure acid leaching. These methods can release toxic sulfur dioxide, generate hazardous waste, and could cause acid mine drainage. Awaruite's simpler processing eliminates smelting and intensive acid leaching, reducing greenhouse gas emissions and toxic chemical release risks, addressing concerns about the large carbon footprint and toxic emissions associated with battery metal refining, particularly for nickel.

The development of awaruite resources is crucial, given China's dominance in the global nickel market. Chinese companies refine and smelt approximately 68%-80% of the world's nickel^{5 6}. Through investments, they also control an estimated 84% of Indonesia's nickel output⁷, the world's largest nickel supplier. Awaruite presents an environmentally safer, more sustainable, and domestically processable nickel source that can meet the growing demand in the stainless steel and electric vehicle markets while reducing reliance on China-dominated foreign refining and smelting, including their significant control over Indonesia's nickel output.

Investor Information            

The Company's common shares trade on the TSX Venture Exchange under the symbol "FAN", the American OTCQB Exchange under the symbol “FANCF” and on several German exchanges, including Frankfurt and Tradegate, under the symbol "P21".

Investors can get updates about First Atlantic Nickel by signing up to receive news via email and SMS text at www.fanickel.com. Stay connected and learn more by following us on these social media platforms:

https://twitter.com/FirstAtlanticNi
https://www.facebook.com/firstatlanticnickel
https://www.linkedin.com/company/firstatlanticnickel/

FOR MORE INFORMATION:
First Atlantic Nickel Investor Relations
Robert Guzman
Tel: +1 844 592 6337
rob@fanickel.com

Disclosure

Adrian Smith, P.Geo., is a qualified person as defined by NI 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 (P.Geo.). Mr. Smith has reviewed and approved the technical information disclosed herein.

The Company has not independently verified the historic samples reported in this release but has received data from the previous property owners and from the Government of Newfoundland and Labrador’s online database.

About First Atlantic Nickel Corp.

First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) is a Canadian mineral exploration company that owns 100% of the Atlantic Nickel Project, a large scale significant nickel awaruite project in Newfoundland and Labrador, Canada. By eliminating the need for smelting, nickel in the form of awaruite reduces dependence on foreign entities of concern for both supply and processing, thereby strengthening supply chain security. In 2022⁸, the US Government designated nickel as a critical mineral, highlighting its importance to the nation's economy and security.

The Atlantic Nickel Project is a special asset due to its unique combination of size, location, proximity to infrastructure, and the presence of awaruite. By developing this domestic awaruite nickel project, First Atlantic aims to enhance supply chain security for the stainless steel and electric vehicle industries in the USA, Canada, and Europe. The Company's strategic location and focus on awaruite nickel position it to play a key role in meeting the growing demand for responsibly sourced nickel in these sectors.

The Company is committed to responsible exploration, environmental stewardship, and working closely with local communities to create sustainable economic opportunities. With its experienced team and the project's significant potential, the Company is well-positioned to contribute to the future of the nickel industry and the global transition to a cleaner, more secure energy future.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements:

This news release may include "forward-looking information" under applicable Canadian securities legislation. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, expectations regarding the timing, scope, and results from the 2024 work and drilling program; future project developments; the Company’s objectives, goals or future plans, statements, and estimates of market conditions. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. Additional factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on http://www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

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¹ https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf
²https://fpxnickel.com/news/fpx-nickel-completes-confirmatory-large-scale-mineral-processing-pilot-testwork-with-funding-support-from-the-government-of-canada/
³ https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf
⁴ https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf
⁵ https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf
⁶ https://www.bloomberg.com/news/articles/2024-05-01/us-philippines-eye-partnership-to-cut-china-s-nickel-dominance
⁷ https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/
⁸ https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals

Photo accompanying this announcement are available at:

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