Core Nickel Announces Flow-Through Private Placement Financing of Up to $1,500,000

Saskatoon, Saskatchewan–(Newsfile Corp. – September 23, 2024) – Core Nickel Corp. (CSE: CNCO) (“Core Nickel” or the “Company”) announces that it intends to conduct a private placement of shares without intermediaries worth up to USD 1,500,000 (hereinafter “Victim“) flow units (each, “FT Unit“) for sale to eligible purchasers at a price of $0.30 per FT Unit. Each FT Unit will consist of one common share of the Company, which will be issued as “flow share“in the sense of Income Tax Act (Canada) (everyone, “Share FT“) and one common share purchase warrant. Each warrant entitles the holder to purchase one non-flow-through common share of the Company at a price of $0.30 at any time on or before the date that is 36 months after the closing date of the Offering.

The total proceeds from the sale of FT units will be used to finance ““Exploration Expenditures in Canada” which qualify as “Critical Mineral Extraction Flow Expenditures” because both terms are defined in Income Tax Act (Canada) (“Eligible expenses“) related to the Company’s properties in the Thompson Nickel Belt in Manitoba until December 31, 2025, and the Company will waive all eligible expenses for the benefit of subscribers of FT shares, effective December 31, 2024.

The Mel Deposit Project, a 100% owned subsidiary, is located just 25 km from Vale’s operating Thompson Mill complex. The Mel Deposit has a historical indicated resource estimate of 4.3 million tonnes grading 0.88% nickel and a historical inferred resource estimate of 1.0 million tonnes grading 0.84% ​​nickel. The Mel Deposit has not been drilled since 2011 but is open to expansion both at depth and along strike.

The Company also owns 100% of the Halfway Lake Project, located just 15 km from Bucko Mill. An initial 3-hole drill program completed by the Company in early 2024 intersected 91 metres of 0.37% nickel with local 1.0 metre intersections of greater than 1.0% nickel in drill hole HFW-002, from a vertical depth of approximately 120 metres. The Company believes that this broad zone of shallow, ultramafic, disseminated nickel sulphide mineralization indicates the potential proximity of a higher-grade massive sulphide zone, which is typical of numerous historically producing and operating mines in the Thompson District.

The Company will pay commissions to eligible persons in connection with the Offering, subject to compliance with applicable securities laws and CSE policies.

Certain directors of the Company (hereinafter referred to as “The Insiders“) may acquire securities in connection with the Offering. Such participation by Insiders is deemed to be “transaction with a related party“in accordance with Multilateral Instrument 61-101 – Protection of minority security holders in special transactions (“MI 61-101The Company expects that it will be exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the acquisition of securities by Insiders under Sections 5.5(a) and 5.7(a) of MI 61-101, respectively, based on the assumption that the aggregate number of securities acquired by Insiders will not exceed 25% of the fair market capitalization of the Company.

All securities issued and sold under the Offering will be subject to a waiting period expiring four months and one day from the date of their issue in accordance with the policies of the CSE and applicable securities laws.

About Core Nickel

Core Nickel Corp. is a junior nickel exploration company that controls 100% of five properties in the prolific Thompson Nickel Belt (TNB) in northern Manitoba, Canada. The five properties encompass approximately 27,000 hectares of land that are close to existing infrastructure such as highways, railways, major hydroelectric transmission lines and operating mills.

Core Nickel has a large, continuous onshore package in the northern part of TNB, located approximately 16-20 km from the town of Thompson. TNB Core Nickel’s northern projects consist of three properties: Mel, Hunter and Odei River. The Mel property includes the Mel deposit, which has a historical NI-43-101 Indicated Resource Estimate of 4.3 million tonnes at 0.875% nickel, equivalent to 82.5 million pounds of contained nickel, and a historical Inferred Resource Estimate of 1.0 million tonnes at 0.839% nickel, equivalent to 18.7 million pounds of contained nickel¹. The target stratigraphy (Pipe Formation) that hosts the Mel deposit and other deposits in the Thompson nickel belt extends into the Hunter and Odea River basins, and drill hole intersections in the target stratigraphy at the Hunter Project have successfully intersected elevated nickel.

Map: Thompson Nickel Belt Properties by Core Nickel

The Company also owns two properties in the central TNB near Wabowden: Halfway Lake and Resting Lake. Both properties are home to the target Pipe Formation associated with known elevated nickel mineralization and are located close to existing nickel deposits, mills and other infrastructure.

The authorized person for the purposes of National Instrument 43-101 Standards of Disclosure of Mining Projects in relation to this press release is Caitlin Glew, P. Geo., Vice President, Exploration, Core Nickel Corp., who has reviewed and approved its content.

References

¹ “Technical Report on the Mel Deposit, Northern Manitoba” prepared for Victory Nickel Inc., Shane Naccashian (P. Geo.) of Wardrop Engineering Inc., March 9, 2007

Technical Disclosure

The historical results contained in this press release were collected from the Manitoba Integrated Mining and Quarrying System (“iMaQs”), where available, and may be incomplete or contain minor location inaccuracies. Management cautions that the historical results were collected and reported by previous operators and have not been verified or confirmed by a Qualified Person, but are the basis for ongoing work on the subject properties.

On behalf of the Management Board
“Foggy Urbatsch”
Foggy Urbatsch
CEO, President and Director
Core Nickel Corp.

Communication:

Find us also online:

Website: www.corenickel.com
X: https://x.com/CoreNickel

The Canadian Securities Exchange or its regulators are not responsible for the adequacy or accuracy of this release.

Forecast information

All statements in this press release that address actions, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future events and other factors that it believes are appropriate in the circumstances. In addition, these statements involve significant known and unknown risks and uncertainties that contribute to the possibility that predictions, forecasts, projections and other forward-looking statements will prove to be inaccurate, some of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or to revise them to reflect the occurrence of future unanticipated events.