First Atlantic Nickel & Cobalt Corp. press release

First Atlantic Nickel & Cobalt Produces High Grade Alloy Concentrate Up to 71.9% Nickel and 1.76% Cobalt from Its Pipestone XL Nickel-Cobalt Alloy Project, Using Its First-Ever ONSHORE MAX (Magnetic Alloy eXtraction) Recovery & Concentration Process, Unveiled at the Fastmarkets Lithium Supply & Battery Raw Materials Conference, Las Vegas, USA

2026-06-24

TSXV - TSX Venture Exchange · Nickel · Chromium · Cobalt · Iron · Hydrogen · Copper · Gold · Silver · Canada · Technical Studies

GRAND FALLS-WINDSOR, Newfoundland and Labrador, June 24, 2026 (GLOBE NEWSWIRE) -- First Atlantic Nickel & Cobalt Corp. (TSXV: FAN | OTCQB: FANCF | FSE: P210) (“First Atlantic” or the “Company”) is pleased to report preliminary results from its proprietary ONSHORE MAX™ (Magnetic Alloy eXtraction) recovery and concentration process, which upgraded rock samples from the RPM Zone of its wholly owned Pipestone XL Nickel-Cobalt Alloy Project into a high grade alloy concentrate averaging 67.4% nickel and grading up to 71.9% nickel and 1.76% cobalt. The bench-scale test work was completed at SGS Canada Inc. (“SGS”) and represents the Company’s first metallurgical recovery and concentration test work on awaruite. The test work used a simple, two-stage process consisting of low-intensity magnetic separation (“LIMS”) followed by flotation. The Company has initiated the permitting process for a large-scale bulk sample at the RPM Zone to optimize and advance the ONSHORE MAX™ process toward a pilot-scale plant.

Awaruite (Ni₃Fe) is a naturally occurring, magnetic, sulphur-free nickel-iron-cobalt alloy that already exists in a reduced metallic state. This allows awaruite to be concentrated by magnetic separation and flotation, bypassing the energy- and capital-intensive secondary midstream processes of smelting, roasting, or high-pressure acid leaching. The Company believes this gives awaruite a differentiated, smelter-free pathway, whereby a high-grade concentrate could move directly into downstream nickel and cobalt battery refining, stainless steel and specialty-alloy production. This pathway supports a vertically integrated North American and allied G7 critical-mineral supply chain that bypasses the constrained midstream smelting step and reduces dependence on foreign countries for nickel processing.

The U.S. Geological Survey identified awaruite as a potential solution to nickel concentrate shortages in its Mineral Commodity Summaries 20121, stating:

“The development of awaruite deposits in other parts of Canada may help alleviate any prolonged shortage of nickel concentrate. Awaruite, a natural iron-nickel alloy, is much easier to concentrate than pentlandite, the principal sulfide of nickel.”

First Atlantic will showcase the high-grade concentrate from its Pipestone XL Nickel-Cobalt Alloy Project this week at the Fastmarkets Lithium Supply & Battery Raw Materials Conference in Las Vegas, being held from June 22 to 25, 2026. Members of management will be available to meet with investors, potential investors, and industry and government delegates, including representatives of the U.S. Department of Commerce, Tesla, Panasonic, General Motors, Ford, Prime Planet Energy and Redwood Materials.

The Company believes the concentrate could anchor a vertically integrated nickel-cobalt supply chain in North America, moving from mine to refinery and enabling the direct refining of nickel sulphate (NiSO₄), the qualifying nickel defined under Section 45X(c)(6) of the U.S. Advanced Manufacturing Production Credit.

To arrange a meeting, or for investor inquiries, please call Rob Guzman, Investor Relations, at +1-844-592-6337or by email rob@fanickel.com.

KEY HIGHLIGHTS

1. High Grade Alloy Concentrate Grading Up to 71.9% Nickel and 1.76% Cobalt:The ONSHORE MAX™ process produced an awaruite (Ni₃Fe) nickel-cobalt alloy concentrate grading up to 71.9% nickel and 1.76% cobalt, approaching the grade of pure awaruite. 2. Pipestone XL Awaruite Concentrate Significantly Exceeds Nickel Sulfide and Laterite Concentrate Grades:The four flotation tests averaged 67.4% nickel and reached up to 71.9% nickel, significantly higher than the 10% to 15% grade of a typical nickel concentrate, according to the Nickel Institute.2 3. First Recovery and Concentration Test Work on Awaruite:The bench-scale program at SGS is the Company’s first metallurgical recovery and concentration test work on awaruite, using LIMS followed by flotation. 4. Cobalt Recovers with Nickel:Cobalt reported into the same concentrate at 1.76%, which the Company believes indicates that a separate cobalt circuit may not be required. Cobalt was assayed in the final test only, and all samples will be assayed for cobalt going forward. 5. Simple, Two-Stage Process Using Proven Methods:A low-intensity magnetic separator drum produced a magnetic concentrate grading approximately 1.6% nickel, which flotation then upgraded into the final high-grade concentrate using equipment and reagents common across the mining industry. 6. Smelter-Free, Direct Metal-to-Downstream Pathway for Full North American Vertical Integration:The Company believes the concentrate could move from mine to refinery, feeding directly into downstream North American nickel and cobalt battery refining, stainless steel and specialty-alloy industries without smelting or offshore processing. 7. Large-Scale Bulk Sample Permitting Initiated Toward a Pilot-Scale Plant:The Company has initiated the permitting process for a large-scale bulk sample at the RPM Zone to advance the ONSHORE MAX™ process toward a pilot-scale plant.

THE ONSHORE MAX™ PROCESS AND TEST WORK

ONSHORE MAX™ (Magnetic Alloy eXtraction) is the Company’s simple, two-stage process for recovering and concentrating awaruite using low-intensity magnetic separation (LIMS followed by flotation. Both are proven, widely used mineral-processing methods.

The program was performed on a 74.5-kilogram composite of 32 individual samples taken from 96 meters of continuous core from RPM Zone discovery hole AN-24-02. The composite returned an average head grade of approximately 0.12% magnetically recoverable nickel, as measured by Davis Tube Recovery (“DTR”) at SGS.

A low-intensity magnetic separator drum operating at approximately 1,000 Gauss produced a magnetic concentrate grading approximately 1.6% nickel. Flotation, using a xanthate-based collector, then upgraded that concentrate to a final awaruite concentrate averaging 67.4% nickel and grading from 63.7% to 71.9% nickel across four tests. All test work was conducted at SGS.

Figure 1:Representative sample of awaruite concentrate product averaging 67.4% Nickel from Pipestone XL - RPM Zone.

Figure 2:Preliminary metallurgical test of composite material from RPM zone at Pipestone XL project, picture showing the rougher flotation stage. The metallic surface visible on-top of liquid within a bench scale flotation cell is awaruite particles attaching to the surface of bubbles and floating to the top to be collected and cleaned in a multi-stage process isolating and concentrating the awaruite nickel–iron-cobalt alloy metal.

Figure 3:Preliminary metallurgical test of composite material from RPM zone at Pipestone XL project undergoing flotation testing, picture showing the multi-stage process of flotation including rougher and cleaning phases to isolate and concentrate the nickel-iron-cobalt alloy metal.

Figure 4:Image of Eriez laboratory drum separator collecting magnetic concentrate while operating at a magnetic intensity of approximately 1,000 Gauss, Low Intensity Magnetic Separation (LIMS) process.

A SIMPLE, CLEAN, LOW-ENERGY PROCESS

The Company believes the program confirms a simple, clean, low-energy and effective process for recovering and concentrating awaruite. Both stages performed as intended, with magnetic separation delivering stable and repeatable performance. The Company believes there is clear potential to improve recovery and grade as grind size, reagents, and flotation conditions are optimized. Because awaruite is sulphur-free and the process uses only magnetic separation and flotation, without midstream smelting, roasting, or high-pressure acid leaching, the process avoids the SO₂ emissions, high electricity demand, and acid mine drainage risks commonly associated with conventional nickel processing.

A HIGH-GRADE CONCENTRATE IN CONTEXT

The 71.9% nickel grade of the concentrate approaches the grade of pure awaruite. By comparison, the Nickel Institute reports that a typical nickel concentrate grades 10% to 15% nickel. The Company believes awaruite’s high nickel and cobalt content, natural magnetism and metallic form allow it to be concentrated to grades well above those achievable from conventional nickel sulphide and laterite minerals.

RPM ZONE BULK SAMPLE PERMITTING UNDERWAY FOR PILOT SCALE PLANT

The Company has initiated the permitting process for a large-scale bulk sample at the RPM Zone, which is intended to provide the volume of material required to advance the ONSHORE MAX™ process from bench scale toward a pilot-scale plant. In parallel, the Company intends to advance an expanded metallurgical program to optimize the magnetic separation and flotation circuit, evaluate the addition of gravity separation, assess chromium as a potential secondary credit, and evaluate downstream refining toward battery-grade nickel sulphate (NiSO₄).The Company believes battery-grade nickel sulphate produced from the concentrate could qualify as nickel under Section 45X(c)(6) of the U.S. Advanced Manufacturing Production Credit, if refined in the US.

ONSHORE MAX™ PROCESS BYPASSES NEED FOR MIDSTREAM SMELTING

Awaruite already exists in metallic form. As a result, the ONSHORE MAX™ process can concentrate awaruite by magnetic separation and flotation without the smelting, roasting, or high-pressure acid leaching that nickel sulphide and laterite ores require. As stated in the August 2025 report, _From Rocks to Power: Strategies to Unlock Canada’s Critical Minerals for Global Leadership in Energy Storage, EVs, & Beyond_from the Battery Metals Association of Canada:

_“Awaruite is not a sulfide nor an oxide nickel ore but a high-content native nickel-iron ore. Simple beneficiation processes after mining could provide 60% Ni concentrate, ready for leaching for battery cathode purposes and would yield MHP as a by-product. This process would bypass pyrometallurgy or early hydrometallurgy stages and be among the lowest carbon-intensive nickel production sites in the global nickel market.”_3

The Company believes bypassing the midstream smelting step offers several advantages, including the avoidance of smelter or refinery treatment and refining charges (TCs/RCs) deducted from the concentrate payables, lower energy consumption, lower emissions and pollution, and, because awaruite is sulphur-free, no acid mine drainage risk. The high grade of the concentrate also reduces the tonnage and freight required to deliver a given quantity of nickel and cobalt to a downstream customer.

NORTH AMERICA’S PROCESSING AND MIDSTREAM SMELTING GAP FOR CONVENTIONAL NICKEL SOURCES

According to the U.S. Geological Survey, global nickel mine production was an estimated 3.9 million tonnes in 2025, of which Indonesia produced approximately 2.6 million tonnes, or roughly two-thirds.4That supply is heavily tied to China. According to the U.S. International Trade Commission (USITC), approximately 90% of Indonesia’s nickel exports went to China in 2022;5China has invested more than US$65 billion in Indonesia’s nickel industry over the last decade;6and Indonesian officials have stated that China controls roughly 90% of the country’s nickel mines and smelters.7

The Carnegie Endowment for International Peace projects that, by 2035, U.S. nickel demand will reach roughly 750,000 tonnes, compared with domestic supply of just 8,000 tonnes. This represents a project deficit of approximately 742,000 tonnes per year, expressed by Carnegie as import dependence of approximately 9,275%.8

North America also has limited capacity to process nickel. The last nickel smelter in the continental United States closed at Riddle, Oregon, in 1998, and the last U.S. primary nickel refinery, at Port Nickel, Louisiana, ceased operations in 1985. Vale’s Thompson smelter in Manitoba closed in 2018, leaving only two operating pyrometallurgical nickel smelters in North America, both in Ontario, and no new nickel smelter currently under construction on the continent. The Company believes this means that nickel sulphide or laterite ore mined in North America would require either existing overseas smelting capacity or the development of new processing methods and capacity.

Building new nickel smelting capacity is a significant undertaking. A smelter is a large-scale facility with additional capital- and energy-intensive requirements layered on top of the mine. It requires a large and reliable electricity supply, SO₂-emission and air-quality permitting, and other environmental approvals, and it can cost as much as, or more than, the mine it serves. In December 2025, Korea Zinc announced a partnership with the U.S. Department of War and the U.S. Department of Commerce to build an integrated primary zinc, lead, and copper critical-minerals smelter in Clarksville, Tennessee, with approximately US$6.6 billion in capital expenditures (approximately US$7.4 billion including working capital and financing), supported by a US$1.4 billion conditional investment from the U.S. Department of War.9First Atlantic is not affiliated with Korea Zinc or that project, which is referenced solely to illustrate the capital intensity of conventional smelting infrastructure.

The technical and environmental limitations of conventional smelting are well documented. As noted in the 2024 review published in the journal Minerals, “Review on the Challenges of Magnesium Removal in Nickel Sulfide Ore Flotation and Advances in Serpentinite Depressor”:

_“However, the traditional concentrate smelting-matte refining process, whilst technologically robust, is capital intensive and suffers from several environmental and technical issues such as sulfur dioxide emissions, poor recovery of cobalt and difficulty processing concentrates high in magnesia and arsenic without appropriate blending with high grade concentrates to dilute the concentration of these species.”_10

The Company believes awaruite and the ONSHORE MAX™ process avoid many of these constraints by producing a high-grade nickel-cobalt concentrate without the need for a smelter.

AN ALLIED SOURCE ALIGNED WITH U.S. AND G7 POLICY

In its January 14, 2026 proclamation, the White House stated:

_“Even where the United States has domestic mining capacity, such as for cobalt, nickel, and rare earth elements, the United States lacks the domestic processing capacity to avoid downstream net-import reliance.”_11

At the June 17, 2026 G7 Summit, the G7 Leaders’ Declaration named nickel as one of only two pilot critical minerals for a new allied traceability framework and committed G7 governments to mobilize equity investment and offtake.12On June 8, 2026, the U.S. House passed the DOMINANCE Act, which authorizes equity investment, co-financing and U.S.-priority offtake for allied projects and defines a “processed” critical mineral as one converted into “a metal, metal powder, or a master alloy.”13The Company believes awaruite, a natural nickel-iron-cobalt alloy, is already in the form the Act defines as processed. In March 2026, First Atlantic was accepted into the U.S. Defense Industrial Base Consortium under the Office of the Assistant Secretary of War for Industrial Base Policy.14

ONGOING ALLOY MAX NORTH & SOUTH DRILL PROGRAM AT NEW LARGE-SCALE ALLOY MAX DISCOVERY ON PIPESTONE XL PROJECT

Pipestone XL hosts a second large-scale awaruite discovery, the Alloy Max Zone, first announced on March 18, 2026 following district-wide surface sampling that integrated geological mapping, surface rock sampling with Davis Tube Recovery (“DTR”) analysis, and geophysics. That work outlined a major new area of magnetically recoverable awaruite mineralization extending up to approximately 7 kilometres north of the RPM Zone, with an initial target area of approximately 4 kilometres of strike and up to 1.5 kilometres of width, larger than the RPM Zone. Surface DTR grades at Alloy Max were comparable to surface values at the RPM Zone, where drill core has consistently returned significantly higher grades than weathered surface samples, and Alloy Max was selected as a priority target for the Company’s 2026 drill program.

On June 15, 2026, the Company reported the discovery hole, XL-26-15, the first hole drilled at Alloy Max North, located approximately 5.2 kilometres north of the RPM Zone discovery hole AN-24-02. Drilling is now ongoing at both the Alloy Max North and Alloy Max South zones, with additional holes underway from multiple drill pads where Company geologists identified visible awaruite in exposed bedrock prior to drilling.

1. Visible Awaruite Over the Entire 414-Metre Hole:Drilled at a 60-degree dip to the east, XL-26-15 intersected visibly disseminated awaruite over its full 414-metre length and ended in open mineralization, with visual abundance and grain size increasing down hole to the east. 2. Confirms a Second Large-Scale Discovery:The hole establishes a new mineralized area approximately 5.2 kilometres north of the RPM Zone. 3. Only 200 m of a ~1.5 km Width Tested:XL-26-15 tested roughly 200 metres of width within a zone mapped about 1.5 kilometres wide, leaving approximately 1.3 kilometres of untested width to the east, where mineralization visually improves down hole. 4. A ~4 km Strike, Larger Than the RPM Zone:Alloy Max spans approximately 4 kilometres of strike and is interpreted to be significantly larger than the RPM Zone in both strike and width; drilling will step east into the larger mineralized area. 5. Active Drilling at North and South:Drilling is ongoing across additional pads at Alloy Max North and South, with minimal overburden allowing geologists to expose bedrock and identify visible awaruite before drilling.

_Figure 5.__Visible awaruite (Ni₃Fe) grains, up to 382 microns, in drill core from discovery hole XL-26-15 at Alloy Max North (340 metres). The bright, metallic grains are awaruite, the naturally magnetic nickel-iron-cobalt alloy that the ONSHORE MAX™ process recovers and concentrates._

_Figure 6__. Map of the Alloy Max and RPM Zone areas showing DTR nickel (%) in surface rock samples, including 2026 Alloy Max drill pad locations and the RPM 2025 drill holes._

STRATEGIC ADVISOR: DR. DOUGLAS WICKS, FORMER U.S. ARPA-E PROGRAM DIRECTOR

On April 29, 2026, First Atlantic appointed Dr. Douglas Wicks as a Strategic Advisor.15Dr. Wicks is a globally recognized expert in critical minerals processing and geologic hydrogen with more than 25 years of senior leadership across the U.S. government, industrial minerals, advanced materials and academia. From 2019 to 2025 he served as a Program Director at the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E), where he designed and led the MINER program (Mining Innovations for Negative Emissions Resource Recovery), targeting domestic nickel, cobalt and other critical minerals through lower-emission processing, and ARPA-E’s Geologic Hydrogen portfolio, the first U.S. federal program to competitively fund stimulated geologic hydrogen research from ultramafic rocks. He now serves as Strategic Director, ASCENT Japan at Renaissance Philanthropy and sits on the Advisory Board of its Chimaera Fund geologic hydrogen initiative.

As quoted in the Company’s April 29, 2026 news release announcing his appointment, Dr. Douglas Wicks commented:

“I’m excited by the novel composition of awaruite (Ni₃Fe), a naturally occurring magnetic nickel-iron-cobalt (Ni-Fe-Co) alloy. Because awaruite occurs naturally as a metallic alloy, it can move directly from mine to metal, feeding stainless steel production or refining for downstream applications. Its natural magnetism makes awaruite amenable to magnetic separation, a proven processing method for separating and concentrating magnetic ores at large scale across the global iron ore industry. Awaruite from the Pipestone XL Project could help onshore the North American nickel and cobalt supply chain, bypassing midstream smelting constraints and delivering usable feedstock for stainless steel, specialty alloy, and electric vehicle battery manufacturing industries.”