Nickel In Magnetic Concentrate From Third RPM Zone Step-Out Drill Hole

GRAND FALLS - First Atlantic Nickel Corp. reported positive Davis Tube Recovery (DTR) metallurgical test results from drill hole AN-24-04, the third hole completed during Phase 1 drilling at the RPM Zone, within its district scale Atlantic Nickel Project. Drill hole AN-24-04 returned 366 meters averaging 1.46% nickel and 1.56% chromium in magnetic concentrate, with a mass pull of 9.53%, resulting in a magnetically recoverable nickel grade (DTR grade) of 0.14%. This 200-meter step-out hole, drilled east of the initial RPM discovery hole AN-24-02, confirms that widespread disseminated visible awaruite mineralization extends significantly further east toward Chrome Pond.

To date, the first three holes drilled along an east-west line at the RPM Zone have delineated at least 500 meters of lateral width, demonstrating remarkably consistent metallurgical results. These holes returned nickel magnetic concentrate grades of 1.37%, 1.32%, and 1.46%, with corresponding mass pulls of 9.49%, 9.12%, and 9.53%, respectively. The Company anticipates receiving DTR metallurgical results shortly for the fourth RPM drill hole (AN-24-05) in the Phase 1 program. All drill holes intersected long intervals of disseminated awaruite nickel mineralization and ending in mineralization, indicating that the system remains open at depth with significant expansion potential. Drill hole AN-24-04, drilled eastward toward Chrome Pond, returned the best results to date and ended in mineralization, establishing this eastern direction as a high-priority expansion target for the Phase 2 drilling program, which is currently underway. The consistency of concentrate grades and mass pulls across this 500-meter width highlights the robust nature of the awaruite mineralization system at RPM.

Awaruite (Ni3Fe) is a naturally occurring nickel-iron alloy containing ~75% nickel. Its sulfur-free composition and highly magnetic properties enable recovery through magnetic separation, a simple, effective, and environmentally sustainable method commonly used in iron ore mining operations throughout North America and globally. This unique mineralogy eliminates the need for costly secondary processing steps required by sulfide nickel ores, which undergo energy-intensive smelting or roasting at high temperatures to remove sulfur, consuming significant electricity and generating environmentally harmful waste and emissions. These secondary processing steps also incur treatment and refining charges (TCs/RCs) which increase overall processing costs and reduce overall payability. The positive DTR results from the RPM Zone confirm that awaruite nickel from the Atlantic Nickel Project is amenable to magnetic separation without the need for smelting or roasting. The limited smelting and roasting capacity in North America currently presents a significant bottleneck to building a fully domestic, secure, and resilient nickel supply chain. Nickel smelters and roasters also pose environmental concerns, face complex permitting challenges, and require substantial electrical infrastructure to support their energy-intensive operations. In contrast, awaruite represents a source of nickel that enables domestic processing by eliminating the requirement for smelting or roasting, thereby reducing geopolitical risk and reliance on overseas smelters. This processing pathway positions awaruite as a strategic source of nickel for establishing a secure, resilient domestic nickel supply chain.

The Company's third drill hole at the RPM zone, AN-24-04, has delivered positive DTR metallurgical test results that significantly expand the area of awaruite mineralization. The hole intersected 366 meters averaging 1.45% nickel and 1.57% chromium in magnetic concentrate, with individual samples reaching up to 2.42% nickel and 4.59% chromium. The consistent mass pull of 9.57% and high-grade magnetic nickel concentrate across the entire interval demonstrates uniform awaruite mineralization throughout the ultramafic host rocks. These metallurgical results build upon the whole rock assay data previously announced on April 23, 2025, which reported intersections of 0.23% nickel and 0.31% chromium over the same 366-meter interval.

Located 200 meters east of the initial RPM Zone drilling, step-out hole AN-24-04 confirms the lateral continuity of the mineralization system across an open-ended 500-meter width. The DTR nickel grade of 0.14% over 366 meters represents the highest magnetically recoverable grade achieved to date at RPM, with total magnetic nickel recovery averaging 59%. Notably, the hole ended in mineralization, indicating the system remains open to the east toward Chrome Pond. The consistency of mass pull and recovery rates across the first three drill holes at the RPM Zone, ranging from 6.0% to 15.0% mass pull, further highlights the uniform and predictable nature of the awaruite mineralization. This is a key factor that supports future resource development and the potential for scalable extraction.

Phase 2 drilling is actively underway at the RPM Zone, with the program strategically designed to expand the current mineralized footprint beyond the approximately 400-meter length by 500-meter width defined by the initial four Phase 1 drill holes. Strategic step-out drilling at greater depths is now actively testing mineralization expansion in all directions - north toward Pipestone Pond, east toward Chrome Pond, and west into the RPM fault zone. The results from AN-24-04, the third RPM hole, have highlighted strong potential for eastern expansion. The elevated DTR grades and the fact that the hole terminated in mineralization indicates that the awaruite system continues eastward. This area, extending toward Chrome Pond, is now a high-priority target for ongoing drilling, with mineralization encountered to date suggesting possible connectivity across the entire area. The Phase 2 program is further supported by upgraded project infrastructure, including improved road access and expanded camp facilities. In addition, equipment optimizations have enabled drilling to greater depths, positioning the project to significantly expand the RPM Zone's known mineralized footprint across all target directions.