Vema Hydrogen and First Atlantic Nickel & Cobalt Sign LOI to Develop Engineered Mineral Hydrogen at Pipestone XL Awaruite Project in Newfoundland

Executive Summary

• Vema Hydrogen and First Atlantic Nickel & Cobalt Corp. have entered into a non-binding Letter of Intent (LOI) to establish a 50/50 joint venture for the development of Engineered Mineral Hydrogen (EMH) at the Pipestone XL Project in central Newfoundland.
• The partnership aims to co-locate low-carbon hydrogen production with First Atlantic's awaruite nickel-cobalt mining program, leveraging Vema's serpentinization technology to supply regional industry, on-site energy needs, and seaborne export markets.
• Laboratory validation of rock samples at Vema's facility in France confirmed the geological suitability of the 30-kilometer ultramafic belt for EMH, positioning the project as a scalable template for integrating clean fuel production with critical mineral extraction.

Key Details

• Transaction Structure: Non-binding Letter of Intent (LOI) to form a 50/50 joint venture between Vema Hydrogen and First Atlantic Nickel & Cobalt Corp. (TSXV: FAN | OTCQB: FANCF | FSE: P21).
• Project Location & Scope: Pipestone XL Project, encompassing the 30-kilometer Pipestone Ophiolite Complex in central Newfoundland, characterized by ultramafic rock formations.
• Technology & Methodology: Engineered Mineral Hydrogen (EMH) utilizing stimulated serpentinization of iron-rich rock to produce high-purity, low-carbon hydrogen without requiring grid electricity.
• Technical Validation: Laboratory testing of Pipestone rock samples at Vema's Orléans, France facility successfully confirmed hydrogen generation potential through stimulated serpentinization.
• Strategic Rationale: The JV will produce hydrogen alongside First Atlantic's primary awaruite nickel-cobalt program, aiming to reduce energy-intensive exploration/mining costs, support downstream industries (ammonia, clean fuels), and attract co-located investment.
• Geological Context: The presence of awaruite (Ni₃Fe), a naturally occurring magnetic nickel-iron-cobalt alloy (~77% nickel, sulfur-free), serves as a geochemical signature of a hydrogen-rich system. Awaruite processing utilizes magnetic separation, eliminating the need for smelting, roasting, or acid leaching.
• Operational Precedent: Vema will leverage experience from its established site at the Thetford ophiolite in Quebec, which operates the world's first commercial EMH project.
• Regulatory/Permitting Status: Permitting is noted as being in place for the advancement of EMH at Pipestone XL.
• Next Steps: Parties intend to negotiate definitive agreements to formalize the joint venture and advance project development.

Notable Quotes

• Dr. Douglas Wicks, Strategic Advisor to First Atlantic & Cobalt: “Vema’s Engineered Mineral Hydrogen is on the verge of delivering clean energy at a scale cost-competitive with hydrocarbons... Awaruite forms through serpentinization when hydrogen reduces nickel and iron, so its presence at Pipestone XL is a clear signature of a hydrogen-rich system. Vema’s technology could engineer that same reaction for hydrogen production, and Pipestone XL is an ideal location due to its size, proximity to infrastructure, and the potential for cost efficiencies in co-locating hydrogen production with nickel & cobalt mining.”
• Adrian Smith, P.Geo., CEO of First Atlantic: “Vema operates the world's first Engineered Mineral Hydrogen project at the Thetford ophiolite in Quebec. Rock samples collected during Vema's site visit to Pipestone XL were tested at their lab in Orléans, France, confirming the hydrogen generation potential of the ultramafic host rocks. Given the link between awaruite formation and hydrogen, we're excited about the potential for Vema's technology to maximize the value of our unique nickel-cobalt alloy project.”
• Pierre Levin, CEO and Co-Founder of Vema Hydrogen: “Engineered Mineral Hydrogen is a promising new primary energy source for regions with iron-rich rock, like at Pipestone. Now with validated rock samples and permitting in place, we have a clear path to advance EMH at Pipestone and to expand the model across North America.”