Fathom Nickel Inc. (CSE: FNI) (FSE: 6Q5) (OTCQB: FNICF) is pleased to announce that it has closed the first tranche of its upsized non-brokered offering of flow-through units and non flow-though units, previously announced on May 8, 2023. Pursuant to the Upsized Offering the Company issued 5,266,000 flow-through common units at a price per FT Unit of $0.155  for gross proceeds of $816,230, and 4,742,000 non-flow through Units at a price per NFT Unit of $0.135 for gross proceeds of $640,170. Combined gross proceeds of the Upsized Offering was $1,456,400. The second tranche of the Upsized Offering, comprised of $1,500,000 charity flow-through units, is expected to close on or about June 7.

Each NFT Unit consists of one Common Share and one transferable Common Share purchase warrant that shall be exercisable into one Common Share for a period of 24 months from issuance at an exercise price of C$0.20.

Each FT Unit consists of one flow-through Common Share and one-half of a transferable Common Share purchase warrant, with one whole Unit Warrant exercisable into a Warrant Share for 24 months from issuance at an exercise price of C$0.23.

The combined 10,008,000 Hard Dollar and FT shares issued were issued in accordance with the accredited investor exemption under National Instrument 45-106 Prospectus Exemptions and are subject to a resale restriction of four months and one day from the date of distribution.

The gross proceeds of the flow-through portion of the Upsized Offering will be used by the Company to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada) related to the Company’s Albert Lake Project and the Gochager Lake Project which are located in Saskatchewan, Canada on or before December 31, 2024. All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2023. The net proceeds of the Upsized Offering from the NFT Units will be used for exploration and development of the Company’s mineral projects and for working capital and general corporate purposes.

As consideration for services in connection with the Upsized Offering, the Company has paid to certain qualified a cash commission of $63,945 and 439,800 broker warrants. Each Broker Warrant will entitle the holder thereof to acquire one common share of the Company at the offering price for a period of 36 months from the Closing Date.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Fathom Nickel Inc.

Fathom is an exploration company that is targeting magmatic nickel sulphide discoveries to support the rapidly growing global electric vehicle market.

The Company has a portfolio of two high-quality exploration projects located in the prolific Trans Hudson Corridor in Saskatchewan: 1) the Albert Lake Project, a 90,000+ hectare project that was host to the historic and past producing Rottenstone deposit (produced high-grade Ni-Cu+PGE, 1965-1969), and 2) the Gochager Lake Project, a 19,560-hectare project that is host to a historic, open-pitable resource consisting of 4.3M tons at 0.295% Ni and 0.081% Cu¹.

1 – The Saskatchewan Mineral Deposit Index (SMID#0880) reports drill indicated reserves of 4,262,400 tons grading 0.295% Ni and 0.081% Cu mineable by open pit. Fathom cannot confirm the resource estimate nor the parameters and methods used to prepare the reserve estimate. The estimate is not considered NI43-101 compliant and further work is required to verify this historical drill indicated reserve.