First Atlantic Nickel Announces Acceptance Into Defense Industrial Base Consortium (DIBC) - Pipestone XL Smelter-Free Nickel-Cobalt Alloy Project Addresses Midstream Smelting Bottleneck in U.S. Defense Supply Chain

Core Viewpoint First Atlantic Nickel Corp. has been accepted as a member of the U.S. Defense Industrial Base Consortium (DIBC), which aims to enhance the domestic defense industrial base and reduce reliance on foreign sources for critical minerals, particularly nickel, which is essential for various defense applications and energy storage solutions. Group 1: Membership and Strategic Importance - First Atlantic Nickel Corp. is now a member of the DIBC, which operates under the Office of the Assistant Secretary of War for Industrial Base Policy to manage key industrial base investment authorities [1][2] - The DIBC's goal is to expand and diversify the defense industrial base, enabling private-sector businesses to collaborate with the U.S. Government and providing financing for key contractors [2] Group 2: Critical Minerals and Project Proposals - The DIBC issued its first Request for Project Proposals (RPP) targeting critical gaps in domestic production capacity for thirteen defense-critical minerals, including nickel, which is highlighted as the most critical battery metal [4][5] - First Atlantic's Pipestone XL Nickel Alloy Project addresses two critical sectors: Strategic and Critical Materials, and Energy Storage and Batteries, aligning with the DIBC's objectives [5] Group 3: Awaruite Nickel-Cobalt Alloy Project - The Pipestone XL project utilizes Awaruite, a high-grade nickel-iron-cobalt alloy mineral containing approximately 77% nickel, which can be processed on-site without smelting [5][7] - Awaruite's processing method bypasses the midstream smelting bottleneck in North America, where there are currently no operational nickel smelters in the U.S. and only two in Canada [9][10] - The project is positioned to supply the North American defense industrial base with a pathway to direct downstream refining of nickel sulfate, qualifying under Section 45X of the U.S. Advanced Manufacturing Production Credit [16][21] Group 4: Market Demand and Supply Projections - The Carnegie Endowment for International Peace projects a U.S. nickel supply deficit of approximately 741,987 tonnes by 2035, highlighting the critical need for domestic production [11][12] - The U.S. Geological Survey has recognized Awaruite as a potential solution to alleviate nickel shortages, emphasizing its easier concentration compared to traditional nickel sulfides [10][21]