First Atlantic Nickel Acquires Ophiolite-X Project Targeting White and Orange Geologic Hydrogen, Carbon Capture, and Critical Minerals in Western Newfoundland

Executive Summary

• First Atlantic Nickel Corp. has entered into agreements to acquire a 100% interest in 18 mineral licenses comprising 500 mineral claims (12,500 hectares) within the Bay of Islands Ophiolite Complex (BOIC) in western Newfoundland.
• The acquired land is branded as the "Ophiolite-X" project, targeting multi-commodity potential including natural/stimulated hydrogen, carbon capture and storage (CCS), awaruite nickel-iron-cobalt alloy, chromite, cobalt, copper, and PGEs.
• The acquisition is funded via the issuance of 4,710,000 common shares, subject to a 4-month statutory hold, and carries Net Smelter Returns (NSR) royalties that can be partially repurchased.

Key Details

• Transaction Structure: The Company entered into three separate agreements on December 3 and 4, 2025, to acquire 100% undivided interests in the following:
  • Agreement 1: 26 mineral claims (2 mining licenses) for 260,000 common shares. Subject to a 2.5% NSR (repurchasable 1.5% for $1,000,000 prior to commercial production).
  • Agreement 2: 432 mineral claims (13 mining licenses) for 3,800,000 common shares. Subject to a 2.0% NSR (repurchasable 1.0% for $1,000,000 prior to commercial production).
  • Agreement 3: 42 mineral claims (3 mining licenses) for 650,000 common shares. Subject to a 2.0% NSR (repurchasable 1.0% for $1,000,000 prior to commercial production).
• Total Consideration: 4,710,000 common shares issued to arm’s length parties.
• Share Restrictions: All shares are subject to a statutory hold period of four months and one day from issuance. No finder’s fees were payable.
• Project Scope: The "Ophiolite-X" project covers 12,500 hectares (125 km²) within the Blow Me Down and Lewis Hills massifs of the BOIC.
• Geological Potential (Hydrogen & CCS):
  • The BOIC is identified as a key area for natural hydrogen due to active serpentinization producing dissolved hydrogen in ultrabasic springs (pH up to 12.3).
  • Memorial University research estimates the total CO₂ storage capacity of the BOIC at 5.1 × 10¹¹ tonnes, equivalent to >13 years of global emissions.
  • Brucite formed during serpentinization is highlighted as the most efficient mineral for CO₂ capture, requiring ~2.5 tonnes to sequester 1 tonne of CO₂.
• Geological Potential (Nickel/Chromite):
  • The area hosts awaruite (Ni₃Fe), a natural nickel-iron-cobalt alloy that forms under reducing conditions requiring hydrogen.
  • Historic chromite occurrences include Blow Me Down Chromite #1 (32.2% Cr₂O₃), Blow Me Down Chromite #2 (40% Cr₂O₃), and Springers Hill (up to 53% Cr₂O₃).
  • The geology is analogous to the Bulqiza chromite mine in Albania, which recently documented significant natural hydrogen venting.
• Regulatory Conditions: Closing is subject to customary conditions, including TSX Venture Exchange (TSXV) acceptance and other regulatory approvals.

Notable Quotes

• No direct quotes from the CEO/President were included in the text body; the release relies on academic citations and technical descriptions.