Nickel 28 Royalty Portfolio Update

The most recent news release from Nickel 28 Capital Corp., dated October 30, 2025, provides an update on its royalty portfolio projects. The company highlights the strategic importance of critical minerals like nickel and cobalt in the global transition to clean energy. Specifically, it notes that cobalt prices have strengthened over the past six months due to rising demand and tightening supply from production and export restrictions in the Democratic Republic of Congo (DRC), which accounts for approximately 80% of global cobalt output. Nickel 28 states it is well-positioned to benefit from this trend due to its significant exposure to cobalt through the Ramu Nickel Project and its royalty portfolio.

Updates on specific royalty projects include: - Dumont Nickel Project (Quebec, Canada): Positive developments regarding power allocation. - Turnagain Project (British Columbia, Canada): Operator Giga Metals is undertaking a geophysics program. - Flemington Project (Australia): Operator Australian Mines announced a targeted ~1,000m drilling program. - Nyngan Scandium Project (Australia): Remains in the development stage.

The CEO, Craig Lennon, emphasizes a growing protectionist approach globally to the development and control of rare earth element (REE) and critical mineral projects, reinforcing the strategic value of Nickel 28's assets.

This news is largely a reiteration of the company's strategic positioning in critical minerals and provides routine updates on its non-producing royalty assets. While the positive market commentary on cobalt prices is a favorable macro trend for Nickel 28, especially given its exposure, it does not represent an immediate material operational or financial impact on the company. The updates on the royalty projects (Dumont, Turnagain, Flemington, Nyngan) indicate ongoing exploration and development activities, which is positive for long-term potential, but these projects are still years away from generating revenue.

In the context of recent company news, Nickel 28 has experienced operational challenges at its flagship Ramu JV (a planned shutdown in FY2024 and an acid plant blower failure in Q1 2025), which impacted production, sales, and increased unit costs. However, the company has shown a recovery in Q2 2025 with strong production and lower costs at Ramu, and has a positive outlook for H2 2025, coupled with consistent debt repayment. There are also ongoing legal disputes with former executives, which represent a significant financial overhang.

Therefore, while the long-term outlook for critical minerals and the progress on royalty assets are positive, this news doesn't alter the immediate financial trajectory or significantly mitigate existing risks. It reinforces the company's long-term vision but lacks the near-term catalysts or financial metrics to be considered "Material - Positive" or a "Game Changer." It is a routine positive development that aligns with the company's strategy.

Nickel 28 Capital Corp. (NKL) is a mineral royalty and streaming company with a primary focus on nickel and cobalt, essential metals for electric vehicles and renewable energy storage. The company's core asset is an 8.56% joint venture (JV) interest in the Ramu Nickel-Cobalt Operation, an integrated nickel-cobalt mine, processing plant, and refinery located in Papua New Guinea. The Ramu operation produces mixed hydroxide precipitate (MHP), a key intermediate product for battery manufacturing, and is operated by Metallurgical Corp. of China (MCC).

In addition to Ramu, Nickel 28 holds a portfolio of 10 nickel and cobalt royalties on various development, pre-feasibility, and exploration projects across Canada, Australia, and Papua New Guinea. Notable royalties include a 1.75% Net Smelter Return (NSR) royalty in the Dumont nickel project in Quebec, a 2.0% NSR royalty in the Turnagain nickel project in British Columbia, and interests in the Flemington and Nyngan Scandium projects in Australia.

The Ramu Nickel-Cobalt operation has demonstrated resilience as a low-cost producer, even amidst fluctuating commodity prices. It has successfully increased its mineral resources and reserves, extending its mine life. Despite operational setbacks like planned shutdowns and equipment failures, the project has shown a capacity for quick recovery and achieving strong production rates.