Canada Nickel Announces Corporate Updates

Press Release

TORONTO, January 19, 2024 – Canada Nickel Company Inc. (“Canada Nickel” or the “Company”) (TSXV: CNC) (OTCQX: CNIKF) has extended the repayment date of the US$12 million loan facility announced September 18, 2023, with Auramet International, Inc. (“Auramet”) from January 18, 2024, to February 16, 2024. The loan will carry an interest rate of 1.25% per month for the extension period.

Canada Nickel has also entered into seven purchase and sale agreements with arm’s length vendors pursuant to which the Company has agreed to acquire mining claims in the Timmins, Ontario region in exchange for the issuance by the Company of an aggregate of 723,000 common shares of the Company and the payment by the Company of an aggregate of $67,760 in cash. Under one of the agreements, the Company agreed to grant to the vendor a 2.0% net smelter returns royalty on the applicable claims. The Company has the exclusive option at any time until the property enters into commercial production to repurchase one quarter of the royalty (being a 0.5% net returns interest) from the vendor for $1,000,000. Under four other agreements, the Company agreed to grant to the vendors thereunder royalties equaling a 2.0% net returns interest on the applicable claims. The Company has the exclusive option at any time and from time to time to repurchase one half of each such royalty (being a 1.0% net returns interest) from the vendors for a cash purchase price of $1,000,000 per royalty.

Canada Nickel has further agreed to issue 100,000 common shares to Taykwa Tagamou Nation (“TTN”) pursuant to the terms of the exploration agreement between Canada Nickel and TTN (the “TTN Exploration Agreement”) and 100,000 common shares to Apitipi Anicinapek Nation (“AAN”) pursuant to the terms of the exploration agreement between Canada Nickel and AAN (together with the TTN Exploration Agreement, the “Exploration Agreements”), in each case in respect of the Company’s regional properties surrounding its Crawford project. The Exploration Agreements continue important relationships through which Canada Nickel recognizes and respects the Aboriginal and Treaty rights of TTN and AAN while engaged in exploration activities on the Company’s properties. The Exploration Agreements also each provide for the Company to make certain cash payments to TTN and AAN based on the cost of the Company’s exploration program on the subject properties.

Each of the foregoing issuances of common shares are subject to the prior approval of the TSX Venture Exchange, and the shares will be subject to a four-month hold period under Canadian securities laws from the date of the respective issuances.

The Company also wishes to confirm that, in connection with the private placement of flow-through units announced in the Company’s news release dated January 2, 2024, the Company has agreed to pay each of Scotiabank and Deutsche Bank a cash fee of $520,380 (being an amount equal to 1.5% of the gross proceeds of the offering).

For further information, please contact:

Mark Selby

CEO

Phone: 647-256-1954

Email: info@canadanickel.com

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