First Atlantic Nickel Announces Acceptance Into Defense Industrial Base Consortium (DIBC) - Pipestone XL Smelter-Free Nickel-Cobalt Alloy Project Addresses Midstream Smelting Bottleneck in U.S. Defense Supply Chain

Executive Summary

• First Atlantic Nickel Corp. was accepted as a member of the U.S. Defense Industrial Base Consortium (DIBC), positioning the company to pursue financing, grants, off‑take agreements and other support under Title III of the Defense Production Act.
• The Pipestone XL Project’s awaruite nickel‑iron‑cobalt alloy directly addresses two DIBC‑identified critical sectors – “Strategic and Critical Materials” and “Energy Storage and Batteries” – and three Areas of Interest, highlighting its potential to supply domestic defense‑critical nickel without reliance on smelting.
• Acceptance into the DIBC may enable First Atlantic to secure U.S. government‑backed capital and contracts, enhancing its ability to develop a smelter‑free nickel supply chain for North American defense and battery markets.

Key Details

• Consortium Membership: First Atlantic is now an official member of the DIBC, which administers programs funded under Title III of the Defense Production Act (DPA) and the Defense Industrial Base Fund.
• Strategic Fit: Nickel is the only battery metal among 13 defense‑critical minerals in the DIBC’s first Critical Minerals Request for Project Proposals (RPP‑CM‑26‑01). The Pipestone XL project addresses:
• Sectors: “Strategic and Critical Materials” & “Energy Storage and Batteries.”
• Areas of Interest: raw mineral sourcing/beneficiation; intermediate chemical processing; metal production/refining.
• Awaruite Advantages:
• Naturally occurring magnetic Ni‑Fe‑Co alloy (~77 % Ni, ~1 % Co).
• Can be processed on‑site via magnetic separation and flotation to produce ~60 % Ni concentrate, bypassing the smelter bottleneck (U.S. has zero domestic nickel smelters; only two remain in Canada).
• Enables direct downstream conversion to nickel sulfate or specialty alloys, qualifying under U.S. Section 45X Advanced Manufacturing Production Credit.
• Potential Government Support: DIBC may provide equity stakes, grants, off‑take contracts at guaranteed prices, loans, or loan guarantees to accelerate domestic mineral production and processing.
• Market Context:
• U.S. Department of War (Sept 2023) identified nickel as essential for aerospace alloys, stainless steel, and lithium‑ion battery chemicals.
• Carnegie Endowment forecasts a U.S. annual nickel deficit of ~742 kt by 2035, with domestic supply projected at only 8 kt.
• Project Scope: Pipestone XL spans the 30‑km Pipestone Ophiolite Complex in Newfoundland & Labrador, encompassing multiple zones (RPM, Alloy Max, Super Gulp, Atlantic Lake, Chrome Pond) containing awaruite mineralization.
• Investor Relations Contact: Robert Guzman – Tel: +1 844 592 6337; [email protected]

Notable Quotes

“Awaruite bypasses the midstream smelting bottleneck in North America… offering one of the lowest carbon‑intensive nickel production pathways.” – Company technical commentary.