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Canada Nickel Company Delivering the Next Generation of Nickel TSX-V: CNC December 2024
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Forward Looking Statements This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. (“CNC” or the "Company"). All statements, other than statements of historical fact, are forward-looking statements and based upon expectations, estimates and projections as at the date of this Presentation. Often, but not always, forward-looking statements can be identified by the use of words such as "may", "will", "expect", "believe", "anticipate", "illustrative", "potential" or the negative of these terms or variations of them or similar terminology. In this Presentation, forward looking information includes, but is not limited to, statements regarding the potential of the Company's Crawford pro ject, including expected future zero carbon production; potential size of carbon storage facilities and potential for a net negative carbon footprint:timing and results of economic studies, mineral resource estimates and mineral reserve estimates; ability to realize on projected economic estimates, including EBITDA, NPV, IRR, all-in sustaining costs, free cash flow and C1 cash costs; scale, capital costs, operating costs and life of mine projections; potential to commercialize the IPT Carbonation process; timing of receipt of permits and commencement of construction and initial production; eligibility for Canadian federal refundable tax credits; the ability to sell marketable materials; strategic plans, including future exploration and development results; and corporate and technical objectives; statements regarding the future of the nickel market, including supply and political risks; and exploration activities at the Company's regional properties. Forward-looking information is necessarily based upon several assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals; the future demand for metals; the results of drilling; the ability to accurately predict mineralization; inability to raise the money necessary to retain and advance the property; environmental liabilities (known and unknown); general business; economic, competitive, political and social uncertainties; results of exploration programs; risks of the mining industry; delays in obtaining governmental approvals; changes in international, national and local government, legislation, controls, regulations and political and/or economic developments; failure to obtain regulatory or shareholder approvals; relationships with local stakeholders; and the impact public health related disruptions in relation to the Company's business operations including upon its employees, suppliers, facilities and other stakeholders. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this Presentation is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. This Presentation has been completed by CNC. Certain corporate projects referred to herein are subject to agreements with thi rd parties who have not prepared, reviewed or approved this Presentation. The Presentation is not intended to reflect the actual plans or exploration and development programs contemplated for such projects. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, CNC disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although CNC believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. For additional information with respect to these and other factors and assumptions underlying the forward-looking information contained herein concerning the Company, please refer to the public disclosure record of the Company, and the most recent annual and interim financial statements and related management’s discussion and analysis of the Company, which are available on SEDAR+ (www.sedarplus.ca) under the Company’s issuer profile. The scientific and technical information contained in this Presentation has been reviewed by Steve Balch, P. Geo, (VP Exploration) who is a Qualified Person within the meaning of National Instrument 43-101. Foreign Exchange Assumptions – All amounts discussed herein are denominated in Canadian dollars unless otherwise specified. 2
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Summary Canada Nickel is the leader in the next generation of large scale nickel supply and one of few new sources of potential supply outside Indonesia/China Nickel market fundamentally short of nickel in medium and long-term – little to no supply growth outside Indonesia/China – potential supercycle emerging which occurs every 15-20 years Canada Nickel unlocking the Timmins Nickel District – large scale, bulk tonnage, open pit nickel sulphide projects with potential for zero carbon production in established mining camp • Key Investors: Agnico Eagle (11.0%), Samsung SDI (8.7%), Anglo American (7.6%) and $20 million convertible note investment by Taykwa Tagamou Nation – largest ever known First Nations direct investment into a critical minerals mining project in Canada (if converted today, would represent 8.4% interest) • Successfully advancing Crawford Nickel Sulphide Project towards construction decision in 2025 - World’s 2nd largest nickel reserve and 2nd largest resource1 - Crawford BFS - $2.5 billion after-tax NPV8% and IRR of 17.1%; increasing to $2.6 billion after-tax NPV8% and IRR of 18.3% with projected Carbon Capture & Storage tax credits. 41 year project life - Filed Environmental Impact Statement completing 2nd stage of federal process – permits expected by Fall 2025 - Advancing project financing activities with a US$500 million Letter of Interest from Export Development Canada as Mandated Lead Arranger and additional C$500 million Support Letter from Leading Financial Institution - 1.5 million tonnes of CO2 annually from IPT Carbonation process. Net negative contributor to global CO2 footprint of 30 tonnes of CO2 storage capacity per tonne of nickel (after project footprint) • Unlocking potential of Timmins Nickel District – potentially world’s largest nickel sulphide resource - Consolidated 20+ ultramafic targets with 25X the 1.6km2 geophysical footprint of Crawford (10 larger than Crawford) - Publishing total of seven additional resources by spring 2025, two new discoveries (Newmarket, Mann South) already made - Massive sulphide at Bannockburn F-Zone – 3.95% nickel over 4 metres within 1.61% nickel over 12 metres • Developing downstream nickel, stainless & alloy steel processing facilities in Timmins region through NetZero Metals subsidiary • Expected to be largest North American nickel processing facility, Canada’s only large scale stainless & alloy facility 31 Source: Wood Mackenzie, Nickel Cost Service Q3 2023 data
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Pro Forma Capitalization Ticker TSXV: CNC Share Price (C$) $0.94 Market Capitalization (C$M) $171 Cash & Equivalents (C$M) $45 Debt(2) (C$M) $40 Market Data 20-Day VWAP (C$) $0.91 52-Week High / Low (C$) $2.24 / $0.89 30-Day Avg. Daily Volume (000's) 412 Basic Shares Outstanding 181.4 Stock Options and RSUs 16.4 Warrants 7.6 Fully Diluted Shares Outstanding (M) 205.4 Capital Structure Analyst Coverage Share Price Performance Capital Structure as of December 13, 2024 Research Coverage Cantor Fitzgerald Cormark Securities Echelon Wealth Partners (1,2) (3) 4 Management and Board 4.6% 7.6% 11.0% 8.7% Agnico Eagle Mines Source: S&P Capital IQ, Bloomberg (1) Cash balance as of July 31, 2024 (most recent quarter) (2) Includes $20M convertible note announced on December 16, 2024 (3) Includes volume traded on TSXV and OTCQX (4) If Convertible Note was exercised today 8.4%(4) Haywood Securities Red Cloud Securities
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Management and Board 5 Mark Selby CEO B.Comm. Previous CEO of Royal Nickel Corporation Corporate development, strategy, business planning and market research Executive with Inco and Quadra Mining Nickel market expert David Smith Chair P.Eng., C.Dir. Senior VP, Finance and CFO of Agnico Eagle Mines Limited; Chartered Director, Director of Sprott Resource Holdings Wendy Kaufman CFO CPA, CA >25 years of experience leading mining companies in project finance, capital structure, capital markets, accounting and internal controls, tax, financial reporting and public disclosure; completed $4 billion finance for Cobre Panama Francisca Quinn Director M.Sc. Co-founder and President of Quinn & Partners Inc., a recognized advisory firm advancing sustainability in business and capital markets; Previously with Carbon Trust and WSP Global Steve Balch VP, Exploration P.Geo. Geophysicist with 35 years experience specializing in Ni-Cu-PGE deposits including for Inco Ltd in the Sudbury Basin and Voiseys Bay Active in developing geophysics technology used in exploration globally Jennifer Morais Director BA, MBA, CFA >20 years as senior executive in private equity, alternative finance, mining finance and management consulting; previously with TPG Capital, CPPIB, OMERS, Hatch and CIBC John Leddy Senior Advisor, Legal LL.B. Senior Advisor, Legal and Strategic Matters at Karora Resources Inc. (formerly RNC Minerals); Over 20 years' experience as a business lawyer and former Partner at Osler Kulvir Singh Gill Director B.Comm., ICD.D 20 years of experience in innovation and sustainability in mining; lead innovation and growth projects for Fortune 500 clients across the mining, O & G and heavy industrial sectors Pierre-Philippe Dupont VP, Sustainability M.Sc. >15 years of experience in successfully obtaining environmental, community stakeholder and First Nation approvals for mining projects, including permitting Dumont Nickel and Canadian Malartic; former Director of Sustainability at Glencore Julian Ovens Director GCB.D Partner and owner at Crestview Strategy. Senior management experience with Rio Tinto and BHP, senior roles with the Canadian government, and successful government relations and public affairs advisory. Desmond Tranquilla VP, Projects P. Eng • >32 years supporting major capital projects. Experience with both major greenfield and brownfield infrastructure projects, including Detour Gold project delivered on-time, on-budget Mike Cox, CEO, NetZero Metals 35 years of nickel processing experience and senior leadership positions with Inco Ltd. and Vale SA overseeing a global portfolio of nickel refineries Chris Chang VP, Corporate Development • 17 years Investment Banking & Capital Markets. Institutional Equities Mining Specialist Sales; Macquarie, Raymond James. Helped raise over $1 billion of equity funding for junior and mid cap mining companies Adam Schatzker, VP, Corporate Development (Carbon Businesses) 20+ years of experience on Sell Side both equity research & investment Banking; RBC Capital Markets. 3+ years in Corp Dev incl Uranium One. Also worked with Mining Private Equity Fund
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Nickel Demand Growth Accelerating from EVs Source: INSG, CNC Analysis Nickel demand growth continues to be underestimated – demand on track to be up 9- 10% annually in first 3 years of decade (3-4X other base metals) and forecasted by CNC to double by 2030 to 5+ Mt and potentially > 6 Mt. 6 2.2 2.5 3.6 2.4 2.8 5.1 2020 2021 2030 20% growth 4% growth 0.3 1.5 Global Nickel Demand (Mtpa) 2020, 2021 & 2030 forecast Battery Stainless & Other Uses At current growth Rate of 9-10%, demand in 2030 could reach 6.0-6.4 Mtpa
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Nickel Supply – Significant Political Risk Is there an ONEC in our future?? Nickel supply facing increasing political risk as Indonesia now dominates nickel supply growth. Just 3 countries control more nickel supply than OPEC did at its peak in 1973. Once HPAL build out largely completed by 2026, expect Indonesia to manage supply through mining quotas Oil 1973 Nickel 2023 Nickel Supply Concentration (2023) vs Oil Supply Concentration at OPEC peak (1973) Other OPEC Persian Gulf 37% 54% Indonesia 55% Philippines Russia 67% Source: U.S. EIA, Canada Nickel analysis These 3 countries: Face revenue shortfalls Have intervened directly into mining sector 7
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8 Indonesia facing real ore constraints Nearly 20 years of “Triple high-grading” – nickel grade, Fe/Ni ratio, slag chemistry – taking toll on Indonesian laterite ore availability Source:Macquarie
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Indonesia Facing Real Ore Constraints Local Indonesian ore prices now in-line with Chinese prices and Indonesian imports of Philippines ore now ~8% of global supply. 9 Source:Macquarie
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Crawford Nickel Sulphide Project Location & Infrastructure 10 Major support infrastructure in place ‒ Roads, power, water ‒ Rail connection Rich mining history and skilled, local workforce Long history of resource development Close proximity to contractors and producing mines One of the largest nickel sulphide resources located in a well-established mining camp with infrastructure
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Crawford Bankable Feasibility Study Highlights The Crawford BFS demonstrates strong financial returns based on a large resource with significant upside potential. Robust Economics US$2.5 billion after-tax NPV8; ($2.6 billion including expected Carbon Capture & Storage tax credit) 17.1% after-tax IRR (18.3% including expected CCUS tax credits) Large Scale, Long Life 48ktpa nickel, 0.8ktpa cobalt, 13kozpa PGMs, 1.6mtpa iron, and 76ktpa chrome over 27 year peak production period 1.6Mt of nickel, 58Mt of iron, 2.8Mt of chrome over project life 41-year mine life (US$1.9 billion initial capex) Low Cost Life-of-mine average net C1 cash cost of US$0.39/lb Life-of-mine average net AISC of US$1.54/lb Highly Profitable Average annual EBITDA of US$811 million and free cash flow of US$546 million during 27 year peak period Life-of-mine US$667 million and US$431 million respectively 11
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Crawford BFS Operating Costs & Capex Two phase production plan peaks at nickel production of 48ktpa with a life-of-mine AISC of US$1.54/lb ($3,395 per tonne) Unit Phase I (Years 1 – 3.5) Phase II (Years 3.5 – 29) Phase III (Years 30 – 41) Life-of-Mine (Years 1 – 41) Mill Capacity ktpd 60 120 120 120 Nickel Production ktpa 26 48 18 38 Net C1 Cash Cost US$ / lb $2.67 $0.68 ($2.39) $0.39 Nickel Recovery % 48% 46% 25% 41% Strip Ratio Waste : Ore 2.37 2.29 n/a 2.33 NSR US$ / t milled $34.96 $32.31 $16.96 $28.08 Onsite Costs US$ / t milled $17.48 $12.38 $6.31 $10.88 Net AISC US$ / lb $2.96 $1.54 ($1.72) $1.54 C1 Cash Cost (Net of By-Product Credits) US$ / lb $2.67 $0.68 ($2.39) $0.39 Initial / Expansion Capital US$M $1,943 $1,600 $0 $3,543 12 Source: Bankable Feasibility Study news release, titled “Canada Nickel Announces Positive Bankable Feasibility Study For its Crawford Nickel Sulphide Project”, Effective Date of October 12, 2023
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Crawford: 1st Quartile Net Cash Cost Producer Based on BFS results, Crawford is expected to be a low-cost producer with 1st quartile Net C1 Cash Cost and All-in Sustaining Costs. Source: Wood Mackenzie 13 Crawford's Net C1 Cash Cost vs 2023 Net C1 Cash Cost of Global Nickel Operations
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Crawford: Low Carbon Footprint Crawford estimated to produce 2.3 tonnes CO2 per tonne of nickel equivalent production: 89% lower than industry average of 34 tonnes of CO2 based on Skarn E0. 14 Source: Skarn Associates Q2-2023 E0 basis is to first saleable product (concentrate); does not include any downstream processing (other sulphides: 4 - 6 t CO2 / t Nickel); based on Scope 1 + Scope 2 emissions. Crawford 2.3 Nickel GHG Intensity Curve - CO2e Intensity (tCO2e/t NiEq)
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Second Largest Nickel Operation & Project Globally (Proven & Probable Reserves) 15 Crawford contains the world’s 2nd largest nickel reserves Largest Global Nickel Operations and Projects by Reserves (Mt Contained Nickel) Source: Wood Mackenzie, Company fillings
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Crawford Nickel Sulphide Project Crawford is expected to be the 3rd largest nickel sulphide operation globally, based on bankable feasibility study results 16 Source: Wood Mackenzie, Company fillings Largest Global Nickel Sulphide Operations Based on 2022 Annual Production
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Accelerated Carbonation Process Achieves NetZero and Generates Substantial CO2 Credits 17 Canada Nickel’s simple carbon storage approach – IPT Carbonation or In-Process Tailings Carbonation – utilizes tailings directly from the mineral processing circuit and conditions them with CO2 for a brief period of time Drill Core Oct 2021 vs Oct 2020 Spontaneous Carbonation (white minerals) Latest IPT Carbonation testwork demonstrates potential to store 1.5 million tonnes of CO2 annually - leading strategy house confirms Crawford project could expect in excess of C$25 per tonne of CO2 in storage fees from IPT Carbonation process Potential demand for 20 million tonne annual storage is in excess of 1.5 million tonne capacity for Crawford – supports Company’s belief that Timmins Nickel District can anchor a Zero Carbon Industrial Cluster in the Timmins-Cochrane region Portion of project capital expenditures to become eligible for carbon capture and storage - refundable investment tax credits of 37.5% to 60% for years 2022-2030 and 18.75% to 30% for years 2031-2040, as announced in 2022 federal budget
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Permitting Milestone: Successful Completion of Filing of Impact Statement Chief Chad Boissoneau, of Mattagami First Nation, commented “Agreements of this nature, built upon honest and genuine relationships, benefit both the First Nation and the Proponent. First Nations can fully participate in the Impact Assessment of a major project on our Traditional Land, while supporting Canada Nickel in making properly informed, sustainable, and respectful decisions about a project that stands to be of great benefit to our community.” “Taykwa Tagamou Nation is proud of the partnership we have with Canada Nickel. This innovative model of applying Traditional Knowledge through a land use study enables our community to both understand the project’s impacts through all stages of its life cycle, while ensuring that, as the stewards of our Traditional Territory, development is conducted in an environmentally sustainable manner”, said Chief Bruce Archibald “True Indigenous partnerships, such as ours with Canada Nickel, provide certainty for proponents, along with economic opportunity for Northern Ontario and impacted Indigenous communities,” said Deputy Chief Derek Archibald. “With this certainty, Taykwa Tagamou Nation is meaningfully participating in the project’s economic development from beginning to end”. Refer to Canada Nickel TSX-V Announcements dated December 14/20, December 16/20; April 4/23, Nov 26/24 18 Successfully completed two of three phases of federal permitting process Completed the filing of the Impact Statement in November 2024
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TTN Investment Partnership 19 • TTN will invest $20 million of its own capital in a 5-year Convertible Note, yielding 4.75%, convertible into 16.67 million shares of CNC at $1.20 per share, representing 8.4% equity in Canada Nickel Company (upon conversion) • TTN will have a right to one seat on the Company’s Board of Directors for so long as it holds the Convertible Note or, after conversion, at least 5% of the Company’s shares • TTN has agreed to provide $1 million deposit upon signing. Completion expected in January 2025 “This partnership exemplifies our vision of economic self-determination,” said Chief Bruce Archibald of TTN. “By utilizing our own capital to secure a significant stake in Canada Nickel, we’re ensuring we have a true seat at the decision-making table. This collaboration paves the way for future generations to thrive while maintaining our commitment to environmental stewardship and community well-being. We are proud to be setting a new standard for First Nation partnership in the mining sector. It demonstrates how mutual respect can drive meaningful change and lasting benefits for both proponents and impacted First Nations.” “TTN has always sought to lead with vision and action, and we’re proud that this partnership sets a new benchmark for how First Nations can engage with the mining sector,” said Deputy Chief Derek Archibald of TTN. “This agreement demonstrates what can be achieved when First Nations are creative with their own- source revenues, and respect, collaboration, and equity are at the forefront.” $20 million investment by Taykwa Tagamou Nation (“TTN”) – largest ever known direct investment into a mining project in Canada by a First Nation
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Crawford Project Milestones Project is less than one year away from target receipt of permits and construction decision 2025 First production by year-end 202720262024 Receipt of final permits by fall 2025 Debt & Equity funding packages by mid-2025 Construction decision fall 2025 Construction 20 Environmental Impact Statement filed Nov 2024
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Timmins Nickel District 21 Potential to be World’s Largest Nickel Sulphide District Consolidated 20+ targets with 42km2 of target geophysical footprint 25X the scale of 1.6 km2 at Crawford - 18 properties successfully drilled - 10 properties have target footprint larger than Crawford - 98% success rate in intersecting target mineralization - Announced successful drill results from eleven different properties in 2024 - Massive sulphide intersected at Bannockburn F-Zone – 3.95% nickel, 0.40% copper, 0.15% cobalt and 1.08 g/t palladium & platinum over 4.0 metres within 1.61% nickel over 12 metres - Deloro – Initial Resource Estimate published - Successful initial metallurgical tests with Crawford flowsheet at Reid, Mann NW
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Bannockburn – Massive Sulphide Discovery • First massive sulphide drilled by Canada Nickel in Timmins Nickel District • Drilling continuing in Bannockburn B-Zone to target other high potential conductivity • Follow-up geophysics underway to understand this Bannockburn target in more detail 22 Massive sulphide discovery at Bannockburn F-Zone: 3.95% nickel, 0.40% Cu, 0.15% Co, 1.08 g/t Pd & Pt over 4.0 metres within 1.61% nickel over 12 metres Figure 1 – BAN24-18 - Select intervals 257.2-262.7 metres ) Total Magnetic Intensity and F-zone location
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2024 Exploration Objectives Property Drilling Start Resource Timeline Geophysical footprint (km2) Texmont Q1-24 Q4 2024 0.1 Deloro Q1-24 Completed 0.4 Reid Q1-24 Q4 2024 3.9 Mann Central Q2-24 Q4 2024 3.1 Mann NW Q3-24 Q1 2025 6.0 Bannockburn Q3-24 Q1 2025 0.4 Midlothian Q3-24 Q1 2025 1.7 TOTAL 15.6 Property Geophysical footprint (km2) Newmarket 2.2 Mann SE 4.1 Moody 1.8 Stimson 0.7 Mortimer 0.6 Van Hise 2.3 TOTAL 11.7 Discovery TargetsResource Targets Multiple of Crawford Footprint 9.8X Multiple of Crawford Footprint 7.3X Deloro is first of seven new nickel resources expected by spring 2025, demonstrating the potential scale of the Timmins Nickel District 23
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Really?? A New Nickel District? Nickel resources are very concentrated in just 6 regions – East half Sulawesi (Indonesia), Sudbury (Canada), Taimyr Peninsula (Russia), Eastern Goldfields (Australia), Bushveld (southern Africa), Surigao/Palawan (Philippines), Jinchuan (China) – The transactions demonstrate the potential of the Timmins region to join this list History of large new sources of nickel supply is: 1) new approach to existing resource and 2) new source of demand to create significant value – not necessarily new discoveries – First generation of supply relied on development of ability to separate nickel from copper and new use in World War 1 created Inco and Sudbury (discovered in 1885, but not unlocked until early 1900s) – Second generation led by Tsingshan realization that nickel/stainless is one market – and use of laterite resources sitting around untapped in Indonesia and Philippines since the 1960s/70s considered “too low grade” by traditional nickel industry to respond to massive stainless demand growth in China Canada Nickel has developed the expertise to unlock value from low grade ultramafics and EV market is huge source of new demand which needs a low carbon nickel (which broader market also needs) – Canada Nickel has consolidated a new Timmins nickel district ideally positioned to deliver to the North American auto industry and western nickel consumers in North America and Europe 24
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NetZero Metals – Downstream Nickel & Stainless Steel Processing Facilities 25 Canada Nickel’s wholly owned subsidiary, NetZero Metals – to develop Downstream Nickel Processing & Stainless Steel Facilities in the Timmins Region • Expected to be the largest nickel processing facility in North America and largest stainless-steel and alloy production facility in Canada to fill a key gap in the North American electric vehicle supply chain – utilizing proven, low environmental footprint technology • Each production facility is expected to use Canada Nickel’s carbon storage capacity at its Crawford Nickel project to deliver zero carbon nickel and stainless steel and alloy production • The Company has appointed SMS, Metso, and Ausenco to lead the engineering studies for the facilities. Feasibility studies are underway and expected to be completed by year-end, with the nickel processing plant expected to begin production by 2027 • NetZero Metals will be led by Mike Cox – 35 years of nickel processing experience and senior leadership positions with Inco Ltd. and Vale SA overseeing a global portfolio of nickel refineries. Mike has assembled a global experienced team • Funding for each project expected to come from various government programs - (Federal/provincial/DOD) and potential partners (multiple discussions underway)
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Summary Investment Highlights Key Investors: Agnico Eagle (11%), Samsung SDI (8.7%) and Anglo American (7.6%) and $20 million Investment by Taykwa Tagamou Nation – largest ever known direct investment into a critical minerals mining project in Canada by a First Nation Nickel market entering “supercycle” by mid-decade driven by EV demand Recent nickel supply growth largely “dirty nickel” - little visibility on supply growth outside Indonesia Crawford 2nd largest nickel sulphide discovery since early 1970s Canada Nickel consolidated Timmins Nickel District – potential for multiple Crawfords Well-positioned to deliver Next Generation of Nickel – large, scalable, nickel supply with zero carbon potential to both stainless & EV markets Development of NetZero Metals Well-established mining friendly jurisdiction with significant infrastructure in place Crawford Bankable Feasibility Study completed October 12, 2023 2024 Catalysts $35 Million Flow-Through Financing Samsung SDI Investment NetZero Metals Continued Systematic District Exploration & Resource Definition Environmental Impact Statement Underway Offtake Agreement Texmont Resource & PEA First Nations Definitive Agreements Crawford Funding Package (Offtake, Equity, Debt) 26
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Appendix
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Crawford BFS Detailed Summary 28 Ownership: 100% Unit Phase I (Years 1 - 3.5) Phase II (Years 3.5 - 29) Phase III (30 - 41) LOM (Years 1 - 41) Mine Type Type Open Pit Capital Expenditures Initial & Expansion US$ millions $1,943 $1,600 $0 $3,543 Sustaining & Closure US$ millions / year $0 $52 $10 $36 Mining & Milling Mill Capacity ktpd 60 120 120 120 Ore Mined Mtpa 36 59 0 42 Ore Milled Mtpa 21 44 43 42 Strip Ratio Waste : Ore 2.37 2.29 n/a 2.33 Nickel Head Grade % 0.26 0.24 0.17 0.22 Chromium Head Grade % 0.63% 0.60 0.49 0.57 Iron Head Grade % 6.2 6.43 6.49 6.44 Recovery Nickel Recovery % 48% 46% 25% 41% Chromium Recovery % 28% 29% 26% 28% Iron Recovery % 54% 56% 46% 53% Production Recovered Nickel ktpa 26 48 18 38 Recovered Chromium ktpa 37 76 54 67 Recovered Iron Mtpa 0.7 1.6 1.3 1.4 Recovered Palladium & Platinum Kozpa 8 13 10 12 Carbon Capture Mtpa 0.6 1.5 1.1 1.3 NSR US$/tonne milled $34.96 $32.31 $16.96 $28.08 Average Costs Mining US$/tonne milled $9.82 $6.21 $0.62 $4.78 Milling US$/tonne milled $5.31 $5.18 $5.19 $5.19 G&A US$/tonne milled $2.35 $1.00 $0.50 $0.92 Total Onsite Costs US$/tonne milled $17.48 $12.38 $6.31 $10.88 C1 Cash Cost US$/lb Ni $2.67 $0.68 ($2.39) $0.39 AISC US$/lb Ni $2.96 $1.54 ($1.72) $1.54 Payables % / Recovered 91% Ni, 50% Fe, 60% Co, 75% Pd, 76% Pt, and 65% Cr
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Crawford BFS Summary – Capital Costs Project construction to be done with single expansion from 60ktpd to 120ktpd mill capacity. Peak capital investment of $1.7 billion for both phases due to Critical Minerals refundable tax credit and expected Carbon Capture & Storage tax credit Source: Bankable Feasibility Study news release, titled “Canada Nickel Announces Positive Bankable Feasibility Study For its Crawford Nickel Sulphide Project”, Effective Date of October 12, 2023 29 The bankable feasibility study capital cost estimates include an allowance for growth averaging 6% within the direct estimate of applicable construction activities. In addition, a contingency averaging 11% has been applied to all direct and indirect items in the two phases of the project.
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30 Crawford Proven & Probable Reserves Crawford Mineral Reserves (effective August 31, 2023) The Mineral Reserve Estimate was prepared in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM, 2014) by QP Dave Penswick, P.Eng who is an independent consultant. Mineral Reserves are included within the reported Mineral Resources. Mineral reserves are contained within a Lerchs-Grossmann pit shell using prices of $15,650/t nickel, $26,000/t cobalt, $878/oz palladium, $748/oz platinum, $211/t iron (equivalent to $58/t iron ore price) and $2,500/t chromium; metallurgical recoveries based on test work, open pit mining costs ranging from C$1.35 – C$3.17/t mined, depending upon depth and size of equipment, mill + G&A costs of C$7.54/t milled and royalties to 4.1% of NSR. The QP is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant issues that could potentially affect this Mineral Resource Estimate.
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31 Crawford Mineral Resources Crawford Mineral Resources (effective August 31, 2023) Mineral Resources have an effective date of August 31, 2023. Mr Scott Jobin-Bevans with Caracle Creek International Consulting Inc at the time of preparation of the estimate, is the Qualified Person responsible for the Mineral Resource Estimate. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Mineral resources are contained within a Lerchs-Grossmann pit shell using prices of $20,000/t nickel, $48,500/t cobalt, $1350/oz palladium, $1,150/oz platinum, $290/t iron (equivalent to $80/t iron ore price) and $2,290/t chromium; metallurgical recoveries based on test work, open pit mining costs ranging from C$1.35 – C$3.17/t mined, depending upon depth and size of equipment, mill + G&A costs of C$7.54/t milled and royalties to 4.1% of NSR. The QP is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant issues that could potentially affect this Mineral Resource Estimate.
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Corporate Office 130 King St West Suite 1900 Toronto ON M5X 1E3 TSX-V: CNC +1 (647) 256-1954 info@canadanickel.com www.canadanickel.com Twitter: @CanadaNickel