First Atlantic to Acquire 100% of the North Arm Project, 52 sq km of Mantle-Derived Ultramafic Rocks in Western Newfoundland Never Systematically Tested for Geologic Hydrogen, Chromium or Awaruite Nickel-Cobalt Alloy

First Atlantic Nickel & Cobalt Corp. (FAN) has entered into an asset purchase agreement to acquire a 100% interest in the North Arm Ophiolite Property. The property consists of 209 mineral claims covering approximately 52.25 square kilometers (5,225 hectares) on the north shore of North Arm, Newfoundland and Labrador. Located within the Lower Ordovician Bay of Islands Ophiolite Complex (BOIC), the site hosts mantle-derived dunite and peridotite rocks and is free of royalties or options.

The acquisition consideration includes the issuance of 1,000,000 common shares at a deemed price of $0.55 per share, along with the reimbursement of $51,250 in refundable security deposits previously posted with the Government of Newfoundland and Labrador. The closing of the transaction is subject to TSX Venture Exchange acceptance and is expected within five business days, no later than January 31, 2027. The payment shares are subject to a statutory hold period of four months and one day.

In a separate corporate action, the company granted 950,000 incentive stock options to directors and an investor relations consultant. The options carry an exercise price of $0.55 per share, a five-year term, and standard vesting schedules.

First Atlantic Nickel & Cobalt Corp. (FAN) has acquired additional land along the 30-kilometre Pipestone Ophiolite Complex, marking an incremental expansion of its existing land package. The transaction aligns with the company’s strategy of controlling multiple ultramafic massifs within the BOIC, following previous acquisitions such as the Ophiolite-X project in December 2025 and the Lucky Mike earn-in in February 2026. This activity is consistent with the company’s ongoing district-scale exploration narrative, which is funded by the approximately $13.4 million raised in September and October 2026.

The financial consideration for the acquisition totals approximately $601,250, comprising 1,000,000 shares valued at $0.55 each plus $51,250 in cash. This amount is immaterial relative to the company’s recent capital raises and overall balance sheet. The share issuance results in dilution of approximately 0.83% of the 120,642,019 shares outstanding, a figure within standard parameters for exploration companies. Additionally, stock options granted to directors and an IR consultant are routine administrative actions that do not alter the strategic or financial profile of the acquisition.

The newly acquired property has never been systematically tested for geologic hydrogen, awaruite, chromium, or PGEs. Consequently, the acquisition carries high speculative risk, and there is no near-term timeline for resource definition or production.

First Atlantic Nickel & Cobalt Corp. (FAN) is a junior exploration company focused on critical minerals in Newfoundland and Labrador, Canada. Its flagship Pipestone XL Project spans a 30-kilometre ultramafic belt within the Pipestone Ophiolite Complex. The project targets awaruite (Ni₃Fe), a naturally occurring, sulphur-free nickel-iron-cobalt alloy averaging 77.62% nickel and 1.69% cobalt.

Awaruite's magnetic properties enable a smelter-free processing pathway via low-intensity magnetic separation and flotation, potentially producing a ~60% nickel concentrate ready for direct refining. Key zones include the RPM Zone, which measures 1.2 km strike by 800 m width, and the Alloy Max Zone, which measures 4 km strike by 1.5 km width. The company has also acquired the North Arm property.

In addition to its Newfoundland and Labrador assets, the company holds the Ophiolite-X project, which targets hydrogen, CCS, chromite, and PGEs. First Atlantic Nickel & Cobalt Corp. also holds a 20% carried interest in the Lucky Mike copper-silver-tungsten project in British Columbia.