Canada Nickel : Investor Presentation - January 2024

Canada Nickel Company

Delivering the Next Generation of Nickel

TSX-V: CNC

January 2024

Forward Looking Statements

This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. ("CNC" or the "Company"). All statements, other than statements of historical fact, are forward-looking statements and based upon expectations, estimates and projections as at the date of this Presentation. Often, but not always, forward-looking statements can be identified by the use of words such as "may", "will", "expect", "believe", "anticipate", "illustrative", "potential" or the negative of these terms or variations of them or similar terminology. In this Presentation, forward looking information includes, but is not limited to, statements regarding the potential of the Company's Crawford project, including future zero carbon production; potential size of carbon storage facilities and ability to be have a net negative carbon footprint; , timing and results of economic studies, including the bankable feasibility study ("BFS"); mineral resource estimates and mineral reserve estimates; ability to realize on projected economic estimates, including EBITDA, NPV, IRR, all-in sustaining costs, free cash flow and C1 cash costs; scale, capital costs, operating costs and life of mine projections; potential to commercialize the IPT Carbonation process; timing of receipt of permits and commencement of construction and initial production; eligibility for Canadian federal refundable tax credits; the ability to sell marketable materials; strategic plans, including future exploration and development results; and corporate and technical objectives; statements regarding the future of the nickel market, including supple and political risks; and exploration activities at the Company's regional properties. Forward-looking information is necessarily based upon several assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, the results of drilling, the ability to accurately predict mineralization, inability to raise the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, changes in international, national and local government, legislation, controls, regulations and political or economic developments, failure to obtain regulatory or shareholder approvals, relationships with local stakeholders, and the impact public health related disruptions in relation to the Company's business operations including upon its employees, suppliers, facilities and other stakeholders. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward- looking information. All forward-looking information contained in this Presentation is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof.

This Presentation has been completed by CNC. Certain corporate projects referred to herein are subject to agreements with third parties who have not prepared, reviewed or approved this Presentation. The Presentation is not intended to reflect the actual plans or exploration and development programs contemplated for such projects. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, CNC disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although CNC believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. For additional information with respect to these and other factors and assumptions underlying the forward‐looking information contained herein concerning the Company, please refer to the public disclosure record of the Company, including the Company's annual information form for the year ended October 31, 2022 and the most recent annual and interim financial statements and related management's discussion and analysis of the Company, which are available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. The scientific and technical information contained in this Presentation has been reviewed by Steve Balch, P. Geo, (VP Exploration) who is a Qualified Person within the meaning of

National Instrument 43-101
Foreign Exchange Assumptions
All amounts discussed herein are denominated in CAD dollars unless otherwise specified.
.	2

Summary

Canada Nickel is the leader in the next generation of large scale nickel supply and one of few new sources of potential supply outside Indonesia/China

Nickel market fundamentally short of nickel in medium and long-term - little to no supply growth outside Indonesia/China - potential supercycle emerging which occurs every 15-20 years

• Significant corporate activity in sector. Further activity expected to be driven by need for North American supply

Canada Nickel consolidation of a substantial new nickel district in established Timmins mining camp represents the Next Generation of Nickel - large scale, lower grade, open pit nickel sulphide projects with potential for zero carbon production led by its rapidly advancing Crawford Nickel Sulphide Project

• Key Investors: Agnico Eagle (12%) and Anglo American (8%)
• $2.5 billion after-tax NPV8% and IRR of 17.1%; increasing to $2.6 billion after-tax NPV8% and IRR of 18.3% with projected Carbon Capture & Storage tax credits. 41 year project life
• Crawford is world's 2nd largest nickel reserve and 2nd largest resource1
  Annual EBITDA of $811 million, free cash flow of $546 million, and 48ktpa of nickel during peak 27 year period
• 1.5 million tonnes of CO2 annually from IPT Carbonation process. Net negative contributor to global CO2 footprint of 30 tonnes of CO2 storage capacity per tonne of nickel (after project footprint)
• Permitting process underway targeting mid-2025 - First phase of federal permitting process successfully completed, Impact Statement (2nd phase) to be completed by mid-2024. Groundbreaking impact assessment agreements with First Nations
• Consolidated 42 km2 of ultramafic/mag highs - 25X the 1.6km2 geophysical footprint of Crawford Successfully tested Reid, Midlothian, Texmont, Sothman, Bannockburn, Deloro, Mann Northwest, Reaume
• 11 targets > footprint than Crawford - Fully funded to unlock district potential in 2024

1 Source: Wood Mackenzie, Nickel Cost Service Q3 2023 data

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Capital Structure

Analyst Coverage

Share Price Performance

Capital Structure as of January 1, 2024

Basic Shares Outstanding	163.3
Stock Options and RSUs	9.6
Warrants	1.1
Fully Diluted Shares Outstanding (M)	174.0

Source: S&P Capital IQ, Bloomberg

1. Cash balance as of July 31, 2023 (most recent quarter)
2. Includes volume traded on TSXV and OTCQX
3. Includes Auramet US$12M facility at FX rate of 0.74
4. Includes Agnico Eagle investment of C$35M which closed on Dec 29/23

Proforma Capitalization as of January 1, 2024

Ticker			TSXV: CNC
Share Price		(C$)	$1.14
Market Capitalization		(C$M)	$163
Cash & Equivalents(1) (3)		(C$M)	$59
Debt(3)		(C$M)	$16
Market Data
20-Day VWAP		(C$)	$1.10
52-Week High / Low	(2)	(C$)	$2.20 / $0.89
30-Day Avg. Daily Volume		(000's)	350.5

		12%
		8.4%
	Management and Board	4%
	Research Coverage
▪	Cantor Fitzgerald
▪	Cormark Securities
▪	Echelon Wealth Partners
▪	Haywood Securities
▪	Red Cloud Securities	4

Management and Board

Mark Selby	▪	Previous CEO of Royal Nickel Corporation	David Smith	▪ Senior VP, Finance and CFO of Agnico Eagle Mines
CEO	▪	Corporate development, strategy, business	Chair
	Limited;
B.Comm.		planning and market research Executive with	P.Eng., C.Dir.
	▪	Chartered Director, Director of Sprott Resource
		Quadra Mining and Inco
				Holdings
	▪	Nickel market expert
Wendy Kaufman	▪	>25 years of experience leading mining companies	Francisca Quinn	▪	Co-founder and President of Quinn & Partners Inc., a
CFO		in project finance, capital structure, capital	Director
		recognized advisory firm advancing sustainability in
CPA, CA		markets, accounting and internal controls, tax,	M.Sc.
		business and capital markets;
	financial reporting and public disclosure;
			▪ Previously with Carbon Trust and WSP Global
		completed $4 billion finance for Cobre Panama
Steve Balch	▪	Geophysicist with 35 years experience specializing	Jennifer Morais	▪ >20 years as senior executive in private equity,
VP, Exploration		in Ni-Cu-PGE deposits including for Inco Ltd in the	Director
		alternative finance, mining finance and management
P.Geo.		Sudbury Basin and Voiseys Bay	BA, MBA, CFA
		consulting; previously with TPG Capital, CPPIB,
▪ Active in developing geophysics technology used
			OMERS, Hatch and CIBC
		in exploration globally
John Leddy	▪	Senior Advisor, Legal and Strategic Matters at	Kulvir Singh Gill	▪ 20 years of experience in innovation and
Senior Advisor,		Karora Resources Inc. (formerly RNC Minerals);	Director		sustainability in mining; lead innovation and growth
Legal	▪	Over 20 years' experience as a business lawyer	B.Comm., ICD.D		projects for Fortune 500 clients across the mining, O
LL.B.		and former Partner at Osler			& G and heavy industrial sectors
Pierre-Philippe	▪	>15 years of experience in successfully obtaining	Mike Cox	▪ Managing Partner at CoDa Associates; previously
Dupont		environmental, community stakeholder and First	Director
		head of Vale UK and Asian refineries following over
VP, Sustainability		Nation approvals for mining projects, including	B.Sc., MBA
		30 years in senior leadership roles in Base Metals
	permitting Dumont Nickel and Canadian Malartic;
M.Sc.				with Inco and Vale
	former Director of Sustainability at Glencore
Desmond Tranquilla	• >32 years supporting major capital projects.	Christian Brousseau	▪ 30 years of experience with engineering, design and
VP, Projects	VP, Innovation &		construction in mining, including >6 years as project
	Experience with both major greenfield and
P. Eng		Technical Services		Director for the Dumont Nickel Project, three years as
	brownfield infrastructure projects, including
		the Engineering and Construction Manager for
		Detour Gold project delivered on-time,on-budget	P.Eng., MBA, ing.
			Detour Gold
Chris Chang	•	17 years Investment Banking & Capital Markets.	Adam Schatzker,	▪ 20+ years of experience on Sell Side both equity
VP, Corporate		Institutional Equities Mining Specialist Sales;	VP Corporate		research & investment Banking; RBC Capital Markets.
Development		Macquarie, Raymond James. Helped raise over $1	Development		3+ years in Corp Dev incl Uranium One. Also worked
		billion of equity funding for junior	and mid cap	(Carbon Businesses)		with Mining Private Equity Fund
		mining companies

Nickel Demand Growth Accelerating from EVs

Nickel demand growth continues to be underestimated - demand on track to be up 9- 10% annually in first 3 years of decade (3-4Xother base metals) and forecasted by CNC to double by 2030 to 5+ Mt and potentially > 6 Mt.

Global Nickel Demand (Mtpa)

2020, 2021 & 2030 forecast

5.1

1.5

2.8	20% growth

2.4 0.3

4% growth

3.6

2.2 2.5

	At current growth
	Rate of 9-10%,
	demand in 2030
	could reach
Battery	6.0-6.4 Mtpa

Stainless &

Other Uses

2020 20212030

Source: INSG, CNC Analysis

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Nickel Supply - Don't Fear Indonesia!

Carbon Footprint & Chinese Control Concerns

Future supply has a "dirty nickel" issue - Indonesian supply will NOT be a solution for a number of consumers due to its massive carbon footprint.

Other consumers will be deterred by integrated Chinese supply chains.

Estimated Carbon Footprint (tonnes CO2/tonne of Nickel produced)

Selected Types of Nickel Production - Existing Projects/Producers

100
					60 - 90
90
80
70
60
50
				10 - 35
40
30
20
2 - 4	7
10
0
Lower Grade Sulphide	High Grade	HPAL	Coal-Powered
	Serpentine	Nickel Sulphide	Asia	NPI Production
	(concentrate)		(intermediate)	Indonesia

Source: WoodMac Nickel Industry Costs, Canada Nickel analysis

7

Nickel Supply - Significant Political Risk

Is there an ONEC in our future??

Nickel supply facing increasing political risk as Indonesia now dominates nickel supply growth. Just 3 countries control more nickel supply than OPEC did at its peak in 1973.

Once HPAL build out largely completed by 2026, expect Indonesia to manage supply through mining quotas

Nickel Supply Concentration (2022)

vs Oil Supply Concentration at OPEC peak (1973)

		67%
	54%
				Russia
					Philippines
	Other OPEC
					Indonesia
	Persian Gulf				50%
	37%

Oil 1973	Nickel 2022
Source: U.S. EIA, Canada Nickel analysis

These 3 countries:

• Face revenue shortfalls
• Have intervened directly
  into mining sector

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Crawford Nickel Sulphide Project Location & Infrastructure

One of the largest nickel sulphide resources located in a well-established mining camp with infrastructure

• Major support infrastructure in place
• • Roads, power, water
  • Rail connection
• Rich mining history and skilled, local workforce
• Long history of resource development
• Close proximity to contractors and producing mines

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Crawford Bankable Feasibility Study Highlights

The Crawford BFS demonstrates strong financial returns based on a large resource with significant upside potential.

Robust	▪ US$2.5 billion after-tax NPV8; ($2.6 billion including expected
Carbon Capture & Storage tax credit)
Economics
▪ 17.1% after-tax IRR (18.3% including expected CCUS tax credits)
	▪ 48ktpa nickel, 0.8ktpa cobalt, 13kozpa PGMs, 1.6mtpa iron, and
Large Scale,	76ktpa chrome over 27 year peak production period

Long Life

• 1.6Mt of nickel, 58Mt of iron, 2.8Mt of chrome over project life
• 41-yearmine life (US$1.9 billion initial capex)

Low Cost

• Life-of-mineaverage net C1 cash cost of US$0.39/lb
• Life-of-mineaverage net AISC of US$1.54/lb

Highly

Profitable

• Average annual EBITDA of US$811 million and free cash flow of US$546 million during 27 year peak period
• Life-of-mineUS$667 million and US$431 million respectively

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