Canada Nickel : Investor Presentation - October 2023

Canada Nickel Company

Delivering the Next Generation of Nickel

TSX-V: CNC

October 2023

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"). Forward looking information includes, but is not limited to, the results of the Crawford preliminary economic assessment ("PEA") including statements relating to net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs, timing for permitting and environmental assessments, realization of mineral resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to obtain permitting by the time targeted, size and ranking of project upon achieving production, economic return estimates, the timing and amount of estimated future production and capital, operating and exploration expenditures and potential upside and alternatives. Readers should not place undue reliance on forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The PEA results are estimates only and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. There are no assurances that Crawford will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of metals or project costs could differ substantially and make any commercialization uneconomic; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes, the availability and productivity of skilled labour and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; mineral resource estimates relating to Crawford could prove to be inaccurate for any reason whatsoever; additional but currently unforeseen work may be required to advance to the feasibility stage; and even if Crawford goes into production, there is no assurance that operations will be profitable.

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.

The scientific and technical information contained in this Presentation has been reviewed by Steve Balch, P. Geo, (VP Exploration) and a Qualified Person within the meaning of National Instrument 43-101. The PEA, prepared by Ausenco Engineering Canada Inc. in accordance with National Instrument 43-101. The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA will be realized. See Appendix for the Crawford PEA assumptions and the press release of CNC dated May 25, 2021.

Foreign Exchange Assumptions

All amounts discussed herein are denominated in CAD dollars unless otherwise specified.

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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

• Anglo American a cornerstone investor - 9.8% ownership stake in Canada Nickel
• $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 - First phase of federal permitting process successfully completed. Impact Statement underway. 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 - Current drilling confirms a large scale discoveries at Reid, Midlothian, and Mann Northwest

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 October 11, 2023

Basic Shares Outstanding	141.8
Stock Options and RSUs	11.4
Warrants	1.1
Fully Diluted Shares Outstanding (M)	154.3

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

Proforma Capitalization as of October 11, 2023

Ticker			TSXV: CNC
Share Price		(C$)	$1.26
Market Capitalization		(C$M)	$179
Cash & Equivalents(1) (3)		(C$M)	$24
Debt(3)		(C$M)	$16
Market Data
20-Day VWAP		(C$)	$1.18
52-Week High / Low	(2)	(C$)	$2.20 / $1.09
30-Day Avg. Daily Volume		(000's)	350.5
			9.6%
Management and Board	5%

Research Coverage

• Cantor Fitzgerald
• Cormark Securities
• Echelon Wealth Partners
• Haywood Securities
• Red Cloud Securities
• Research Capital

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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		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

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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 at peak production
Long Life	▪	1.6Mt of nickel, 58Mt of iron, 2.8Mt of chrome over project life

	▪ 41-year mine life (US$1.9 billion initial capex)
Low Cost	▪ Life-of-mine average net C1 cash cost of US$0.39/lb
▪ Life-of-mine average net AISC of US$1.54/lb
Highly	▪ Average peak annual EBITDA of US$811 million (LOM: US$667
million)
Profitable
	▪ Peak Free Cash flow of US$546 million (LOM: US$431 million)

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