Highlights

• Canada Nickel to receive $8 million in cash and 8.9 million shares and hold 62% interest in RoyaltyCo

Canada Nickel Company Inc. (TSX-V:CNC) (OTCQB: CNIKF) is pleased to announce the signing of a binding Letter of Intent with Edmiston Drive Capital Corp. on March 17, 2025 whereby a new royalty company will be created to hold net smelter return royalties on all of Canada Nickel regional exploration properties in the Timmins Nickel District with the exception of Crawford and other targets (Kingsmill and Dargavel) located on the original Project 81 patents.

Subject to the satisfaction of applicable conditions precedent, Canada Nickel anticipates it will receive $8 million in cash and 8.9 million shares of EDCC to hold a 62% interest in EDCC upon closing.

Mark Selby, Canada Nickel’s CEO, said: “We are very excited to work with EDCC toward the creation of a new royalty company which will hold NSR royalties of the Company’s portfolio of properties in the Timmins Nickel District which, when combined, we expect to be among the world’s largest nickel sulphide resources.  We have published resources on two of these properties and expect to announce a further six resources by mid-2025.  This transaction is just one further step in unlocking value while minimizing equity dilution for Canada Nickel shareholders.  This world scale portfolio is just the start for EDCC, which will seek the acquisition or creation of new royalties and streams that align with its low carbon and low environmental footprint objectives.”

RoyaltyCo Formation and Transaction Details

Canada Nickel will grant 1% NSR royalty interests in the subject properties to RoyaltyCo, which will then (subject to the satisfaction of closing conditions) amalgamate with a wholly owned subsidiary of EDCC in exchange for C$ 8 million in cash and 8.9 million common shares of EDCC.  One such closing condition is the completion by EDCC of a financing whereby $9 million will be raised through the issuance of a combination of common and preferred shares.  The proceeds of such financing will be used for the closing payment to Canada Nickel and for general corporate purposes. After giving effect to the financing, Canada Nickel expects that its equity interest in EDCC will be approximately 62%.  EDCC is a reporting issuer in Ontario, British Columbia, and Alberta, which may allow for a more straightforward listing, if and when EDCC determines that a stock exchange listing is in the best interest of its shareholders.

The terms of the LOI are binding subject to the satisfaction of certain closing conditions.

The board of directors of EDCC, following completion of the transaction, shall consist of one director appointed by the current directors of EDCC, two directors appointed by Canada Nickel, and two independent directors.

The transaction is expected to close by April 30, 2025 and, among other approvals, is subject to any required approvals of the TSX Venture Exchange (the “TSXV”).

About Canada Nickel

Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless-steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel™, NetZero Cobalt™, NetZero Iron™ and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.

About EDCC

EDCC was incorporated under the laws of British Columbia in July of 2022 for the purpose of making investments via mergers, takeover bids, or other transactions. EDCC is a “Reporting Issuer” in British Columbia and Ontario and is a “Public Company” as defined in the Income Tax Act (Canada). EDCC’s sponsor and largest shareholder is Copland Road Capital Corp. a corporation continued under the laws of British Columbia whose shares are listed on the Canadian Securities Exchange under the ticker symbol “CRCC”.