Power Nickel Inc.  (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) and Chilean Metals Inc. are pleased to announce that they have completed the previously announced strategic reorganization of their business pursuant to which the Golden Ivan Property and certain Chilean assets and liabilities have been spun out to Power Nickel shareholders through Chilean Metals.

Terry Lynch, Chief Executive Officer of Power Nickel and a Director of Chilean Metals, commented:

“Wow that was easy! All kidding aside it’s terrific to have this accomplished. It will allow Chilean Metals to be able to grow at its own pace and on its own merit. We recently reviewed the exploration programs and we are very excited to have them advance their drill plans in mid H1. Will have a more fulsome update for the market around PDAC. We are excited about the future at Chilean even while we remain focused on advancing our exploration at Nisk.”

The Spin-Out was completed by way of a statutory plan of arrangement pursuant to the Business Corporation Act (British Columbia). The Arrangement became effective at 12:01 a.m. on February 3, 2025. In accordance with the Arrangement, the Power Nickel shareholders of record as at the close of trading on January 31, 2025 will receive, in exchange for each Power Nickel common share held immediately prior to the Effective Time: (i) one new common share in the authorized capital of Power Nickel; and (ii) 0.05 of one common share in the authorized capital of Chilean Metals. The Shareholders own approximately 50% of the issued and outstanding Chilean Metals Shares, with Power Nickel holding the remaining balance of the Chilean Metals Shares.

As previously announced, the Spin-Out was completed as part of a strategic reorganization to unlock value for Power Nickel shareholders, providing them with an ownership stake in two separate specialized companies. Power Nickel will continue to focus on the advancement of the Nisk project, while Chilean Metals will focus on advancing the Golden Ivan property and the Chilean assets. The Golden Ivan property is located in Terrace, British Columbia and comprises 13 mineral claims, covering a total area of 797 hectares. Chilean Metals acquired the Company’s interests in the Zulema, Tierra de Oro, Palo Negro, Hornitos and Tabaco projects located in Chile. Power Nickel retained its royalty interest in the Chilean Copaquire project.

The New Power Nickel Shares continue to trade on the TSX Venture Exchange in Canada, on the OTC Market in the United States and on the Frankfurt Stock Exchange in Germany. The CUSIP / ISIN for the New Power Nickel Shares is: 739301406 / CA7393014062. Chilean Metals will not be listed on any stock exchange but will operate as a reporting issuer in British Columbia and Alberta and will comply with its continuous disclosure obligations under applicable securities laws.

Further information regarding the Spin-Out and Chilean Metals is set out in Company’s information circular dated October 21, 2024, which is filed under Power Nickel’s SEDAR+ profile at www.sedarplus.ca.

Endeavor Trust Corporation is the depositary in connection with the Spin-Out. On January 31, 2025, Endeavor Trust Corporation sent out letters of transmittal to registered holders of certificated shares, as described in the Company’s January 16, 2025 news release.

About Power Nickel Inc.

Power Nickel is a Canadian exploration company focusing on developing the High-Grade Nickel Copper PGM, Gold and Silver Nisk project into potentially Canada’s next poly metallic mine.

On February 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp. (CRE: TSXV).

The NISK property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts. Power Nickel is focused on expanding the high-grade nickel-copper PGM, Gold and Silver mineralization with a series of drill programs designed to test the initial Nisk discovery zone, the Lion discovery zone and to explore the land package for adjacent potential poly metallic deposits.

About Chilean Metals Inc.

On February 3, 2025 Chilean Metals completed a plan of arrangement with Power Nickel Inc., pursuant to which it acquired a 100% legal and beneficial interest in the Golden Ivan property. The Golden Ivan property is located in Terrace, British Columbia and comprises 13 mineral claims, covering a total area of 797 hectares. Chilean Metals also owns interests in the Zulema, Tierra de Oro, Palo Negro, Hornitos and Tabaco projects located in Chile.