First Atlantic Nickel & Cobalt Expands Alloy Max Zone 445 Meters South of the Discovery Hole: XL-26-16, the Deepest Hole to Date at Pipestone XL, Intersects Large-Grain Visible Awaruite (Ni-Fe-Co Alloy) Over Its Entire 525-Meter Length, Ending in Open Min

First Atlantic Nickel & Cobalt Corp. (FAN) reported drill hole XL-26-16 at the Alloy Max Zone, Pipestone XL. The hole intersected visible, disseminated large-grain awaruite continuously from approximately 9 meters downhole to the end-of-hole at 525 meters, ending in open mineralization. Grain size and abundance increased with depth, with maximum grains reaching 544 microns.

The hole is a 445-meter step-out south of the Alloy Max discovery hole XL-26-15, confirming strike continuity. No assay or Davis Tube Recovery (DTR) nickel grades were reported; the entire release is based on visual observations. The company states the zone remains open at depth and is reinterpreting magnetics to expand the footprint.

First Atlantic Nickel & Cobalt Corp. (FAN) is an explorer with no established resource, meaning the materiality of its drill results hinges on demonstrating a large, continuous, economic volume. The company’s latest step-out hole confirms the strike continuity of the Alloy Max zone, a development that adds to the geological understanding of the property but provides no new quantitative information regarding grade or recoverability.

The market had already priced in the Alloy Max discovery following hole XL-26-15, which reported 414 m of visual awaruite. Following that announcement, the stock rose from approximately $0.26 to $1.28 before correcting to $0.70. Given that the prior hole already established the zone, a second hole located 445 m away with similar visual characteristics serves as incremental confirmation rather than a transformative event.

The release lacks any grade or DTR data, which limits its impact on the investment thesis that the deposit may host a large, low-grade resource. It does not de-risk metallurgy or economics. Compared to the significant run-up in expectations seen on the initial discovery, this news is unlikely to move the stock materially.

First Atlantic Nickel & Cobalt Corp. (FAN) holds the 100%-owned Pipestone XL Project in central Newfoundland, which covers a 30-km ophiolitic ultramafic belt hosting awaruite, a nickel-iron-cobalt alloy. Key zones within the project include the RPM Zone, which has been drill-confirmed to extend over 1.2 km in strike and more than 800 m in width, and the Alloy Max Zone, a target area measuring approximately 4 km by 1.5 km that is currently undergoing early drilling.

Awaruite is a sulphur-free, naturally magnetic alloy containing approximately 77% nickel in mineral form. It can be concentrated via magnetic separation and flotation, a process that bypasses the need for smelting. In bench-scale tests, the company’s ONSHORE MAX process has produced a concentrate grading up to 71.9% nickel.

Beyond the Pipestone XL Project, First Atlantic holds the Lucky Mike copper-silver-tungsten project under option to Core Critical Metals, retaining a 20% carried interest. The company is also pursuing early-stage hydrogen and carbon-capture initiatives at Ophiolite-X.

First Atlantic has a market capitalization of approximately CAD 85.7 million. Recent financings raised approximately $7.8 million in early 2026, and the company reported cash of $3.79 million as of January 31, 2026, with additional post-period raises noted.