Canada Nickel Provides Corporate Update

• Loan Facility Extension: The US$32 million bridge loan with Auramet International was extended from May 9, 2026, to August 9, 2026.
• Extension Costs: A fee of US$824,257 was paid for the extension.
• Warrant Activity: 3,500,000 new warrants issued (12-month term); 1,750,000 existing warrants cancelled. Net increase in warrant count is 1,750,000.
• Investor Relations: Engagement of Rose & Co. for US$62,500 per quarter over one year.
• Land Consolidation: Acquired additional land holdings in Timmins and Cochrane Districts via cash payments and common share issuances (35,000 shares total).
• CEO Commentary: CEO Mark Selby confirmed progress on Crawford permitting with a federal decision expected summer 2026 and financing initiatives expected to complete this summer.

• Liquidity Relief vs. Cost: The extension prevents an immediate default risk on the May 9 maturity, providing three months of runway. However, the US$824k fee represents a significant cash outflow for a development-stage company with limited revenue.
• Dilution Risk: Issuing 3.5 million new warrants while cancelling only 1.75 million results in net dilution. The exercise price is based on VWAP + 5%, which may be below current market levels if the stock trades near $2.00, creating potential overhang.
• Financing Signal: The need to extend a bridge loan originally due May 9 suggests that the "financing initiatives" mentioned by management have not closed as quickly as anticipated. This indicates potential liquidity pressure despite the extension.
• Market Context: The news is largely consistent with previous financing announcements (Feb 2026). It does not introduce new upside catalysts like a resource update or major partnership, but rather manages existing debt obligations.

• Flagship Project: Crawford Nickel-Cobalt Sulphide Project located ~42 km north of Timmins, Ontario.
• Project Status: Development phase; detailed engineering underway (Hydro One power connection, Ausenco engineering consultant).
• Permitting: Federal Impact Assessment phase commenced March 2026; decision expected Summer 2026.
• Technology: Utilizes In-Process Tailings (IPT) Carbonation and NetCarb partnership for carbon sequestration goals.
• Other Assets: Midlothian, Bannockburn, Reid, Mann West/Central, Texmont projects in the Timmins Nickel District.