Core Viewpoint - First Atlantic Nickel Corp. has commenced Phase 2 drilling at the RPM Zone of its Atlantic Nickel Project in Newfoundland, aiming to expand the mineralized area and explore new nickel targets, leveraging the unique properties of awaruite for environmentally sustainable processing [1][4][19]. Phase 2 Drilling Program - The Phase 2 drilling program is designed to extend the mineralized area beyond the initial 400 meters by 500 meters defined in Phase 1, targeting high-priority areas to the north, east, and west [5][6]. - The program aims to outline a large-scale nickel system with the potential to host over one billion tonnes of mineralized material [5][6]. - New road access and a more powerful drill rig will enhance drilling speed, depth capacity, and cost efficiency [5][6]. Awaruite Characteristics - Awaruite is a naturally occurring nickel-iron alloy composed of approximately 75% nickel, offering significant processing advantages due to its native metallic state, which eliminates the need for energy-intensive smelting or roasting [2][14]. - The processing of awaruite results in a lower carbon footprint and is suitable for simple domestic processing, aligning with North America's critical minerals supply chain needs [2][14][16]. Phase 1 Results - Phase 1 drilling confirmed a significant awaruite-hosted nickel discovery, with consistent grades averaging approximately 0.24% nickel and strong metallurgical results [7][8]. - Davis Tube Recovery (DTR) metallurgical testing produced a magnetic concentrate with an average grade of approximately 1.35% nickel [5][7]. Strategic Acquisitions - The company has entered into a definitive agreement to acquire eight mineral licenses totaling approximately 3,350 hectares around the Atlantic Nickel Project, which returned elevated magnetically recoverable nickel values [10]. - The acquisition will be financed through the issuance of 1,000,000 common shares at a deemed price of $0.205 per share [10]. Market Context - Awaruite's processing method aligns with the U.S. Inflation Reduction Act's requirements for electric vehicles, which mandate that eligible clean vehicles must not contain critical minerals processed by foreign entities of concern [14][19]. - The development of awaruite resources is crucial for reducing dependence on foreign nickel processing, particularly from China, which dominates the global nickel market [16][19].

Report Summary 1. Report Date and Title - The report is dated April 15, 2025, titled "Nickel: Short - term Fundamental Support, Nickel Prices Firm; Stainless Steel: Cost May Provide Bottom Support, Negative Feedback Expectations Exert Pressure" [1][2] 2. Core Views - Nickel prices are expected to run firmly due to short - term fundamental support, while stainless steel prices may be supported by cost at the bottom but face pressure from negative feedback expectations [1][2] 3. Key Data Summary 3.1 Futures Data - **Nickel Futures**: The closing price of the Shanghai Nickel main contract is 123,090, with a change of 1,790 compared to T - 1. The trading volume is 173,645, a change of 3,314 from T - 1 [2] - **Stainless Steel Futures**: The closing price of the stainless steel main contract is 12,805, up 105 from T - 1. The trading volume is 132,926, an increase of 56,160 compared to T - 1 [2] 3.2 Industrial Chain Data - **Nickel Products**: The price of 1 imported nickel is 123,150, up 2,550 from T - 1. The price of 8 - 12% high - nickel pig iron (ex - factory price) is 995, down 3 from T - 1 [2] - **Stainless Steel Products**: The price of 304/2B coil - rough edge (Wuxi) is 13,200, up 50 from T - 1. The price of 304/No.1 coil (Wuxi) is 12,775, unchanged from T - 1 [2] 4. Macro and Industry News - The GNI nickel - iron project in Indonesia has gradually resumed production after cutbacks in January - February. Its capacity utilization increased from 30% to 50% in March, with an expected monthly output increase of about 0.2 million nickel metal tons in March. It plans to reach normal production by the end of April [2] - The Indonesian government proposed to adjust non - tax state revenues, raising the resource tax rates of nickel ore, nickel - iron, nickel pig iron, and nickel matte to floating ranges of 14% - 19%, 5% - 7%, 5% - 7%, and 4.5% - 6.5% respectively [3] - The governor of Ontario, Canada, may stop exporting nickel to the US in response to US tariff threats [4][5] - The Ramu nickel - cobalt project's Basamuk HPAL plant has resumed full - load production. Its MHP guidance output in 2025 is about 32,000 nickel metal tons [5] - The Indonesian Ministry of Energy and Mineral Resources signaled that new rules related to increasing mineral and coal royalties will be issued before Eid al - Fitr or March 31, 2025 [5] - China will impose a 34% tariff on all imported goods from the US starting from April 10, 2025, at 12:01 [5] 5. Trend Intensity - The trend intensity of nickel is +1, and that of stainless steel is 0. The trend intensity ranges from - 2 to 2, where - 2 means most bearish and 2 means most bullish [5]