First Atlantic Nickel Closes $3 Million Dollar Investment Through Issuance of Non-Dilutive Unsecured Debenture with Option to Defer Interest and Principal Payments for 5 Years

Vancouver, British Columbia--(Newsfile Corp. - February 18, 2025) - First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce that it has closed the previously announced agreement dated February 9, 2025, and it has received $3 million in cash to advance its wholly owned district scale Atlantic Nickel Project (the "Project") through the issuance of a $3 million senior unsecured debenture (the "Debenture") pursuant to a non-brokered debt private placement (the "Private Placement"). This strategic investment marks a significant milestone for the Company, providing a non-dilutive source of capital to support the development of the Project.

The Debenture is the largest individual capital funding transaction in First Atlantic's history and contains favourable terms, including a 5-year deferral on all interest and principal payments, with the option to convert the entire Principal Amount of the Debenture plus accrued interest to a royalty which can be repurchased. No equity securities were issued on closing the Debenture, ensuring no immediate dilution to the Company. Additionally, there were no finder's fees of cash or warrants issued as the Company closed the transaction directly with the lender.

Highlights

• $3 Million in Proceeds: The $3 million in non-dilutive proceeds from the Debenture will fully fund the Company's Phase 2 Drill program, assays and metallurgical testing.
• Strategic Capital: The $3 million in new funding from a strategic investor provides strong financial backing for the Company's Atlantic Nickel Project exploration and development.
• No Dilution: No equity securities are required to be issued to the lender under the Debenture.
• No Commissions: No commissions, finder's fees, or broker warrants were issued as the Private Placement was initiated and completed between the Company and the lender.
• 5-Year Maturity: The Debenture is not required to be repaid until maturity in 2030 and the Company is entitled to satisfy the annual interest obligations under the Debenture by adding such amounts to the principal amount outstanding under the Debenture.

For further information, questions, or investor inquiries, please contact Rob Guzman at First Atlantic Nickel by phone at [phone] or via email at [e-mail].