Canada Nickel Announces Significant Awaruite at Midlothian Property

Highlights

• 79% of the total nickel at Midlothian is contained in awaruite, a high-grade nickel-iron alloy

• Mineralogical and Davis Tube Recoverable ("DTR") analysis confirm significant awaruite, with DTR grades of 0.15%, 0.14%, and 0.12% nickel on composite samples – comparable to other awaruite deposits

• Brucite content averages 5.6%, more than 2.5 times higher than Crawford, indicating strong carbon storage potential

TORONTO, Feb. 26, 2026 /CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) is pleased to announce mineralogical and metallurgical results from its 100% owned Midlothian Project ("Midlothian"), which confirm significant recoverable awaruite with grades and scale comparable to other leading awaruite deposits. An initial resource for Midlothian was published on December 18, 2025 with 590 million tonnes Inferred at 0.28% nickel. Midlothian, located in the Timmins Nickel District, is also well-positioned to leverage existing regional infrastructure.

CEO Mark Selby said, "Today's announcement is another exciting development in the Timmins Nickel District confirming Midlothian as a significant deposit. The strong results across all samples highlight the potential of this resource, which contains significant quantities of awaruite ranging from 0.25-0.36% and has the highest average nickel grade in our portfolio (0.28%) and total nickel grades more than 30% higher than other leading awaruite deposits. Midlothian is emerging as one of the most promising deposits in the District."

Mr. Selby continued, "We are encouraged by these early results, especially as initial DTR tests were done at coarser grind size than other deposits. A finer grind may yield even higher DTR nickel results. Because the awaruite mineralization has been confirmed to be widespread at Midlothian, the Company plans to assay all existing and future drill holes to allow a DTR nickel resource grade to be calculated in addition to a total recoverable nickel resource."

Midlothian Project

Midlothian is located 64 kilometres southwest of Timmins and 20 kilometres west of Matachewan, Ontario. It is a large serpentinized ultramafic approximately 2.5 km long and up to 520 metres wide - with a geophysical footprint of 1.7 km² (similar to the combined footprint of Crawford's Main and East Zones) - consisting mainly of a highly serpentinized dunite core with minor peridotite and significant awaruite nickel mineralization accounting for up to 79% of the total nickel content.

An initial total nickel resource estimate was published at the end of 2025 (see news release December 18, 2025) containing an Inferred Resource of 0.59 billion tonnes grading 0.28% nickel for a total of 1.68 million tonnes of nickel. The resource estimate was based on 22 drillholes, where all drillholes were sampled for geochemical analysis at an average rate of one core sample per 1.5 metres. In addition, one sample every twenty core samples was selected and submitted for mineralogical (QEMSCAN) testing.

This release summarizes the mineralogical results for 177 samples from the first 14 of the 22 drillholes (Figure 1), as well as metallurgical results for four separate composite representing different mineralization styles within the deposit (Table 1). The results highlight the thoroughly serpentinized nature of the ultramafics and confirm the different mineral forms in which nickel is hosted. Mineralogical results on the remaining eight holes are pending. The nickel mineralization is dominated by a nickel-iron alloy (awaruite) and minor nickel sulphide (heazlewoodite) Figure 2, Table 1. Both awaruite and heazlewoodite are minerals that have a higher nickel tenor, ranging between 65-75% nickel content.

Brucite, a key mineral indicator for carbon sequestration potential was also identified by QEMSCAN. Midlothian contains significantly higher abundance than both Crawford's East and Main Zones. (Figure 3)

Table 1 – Midlothian – Composite Samples Mineralogy summary*

Comp-A comprised 62 samples totaling 93 metres in core length; COMP-B comprised 50 samples totaling 77 metres; COMP-C comprised 30 samples totaling 45 metres; COMP-D comprised 58 samples totaling 87 metres.

Average nickel grade is 0.28% (see release December 18 2025)

*Mineral Averages are from mineral mass estimations by QEMSCAN

*Mineral Averages are from 177 QEMSCAN samples across the Midlothian deposit

*Mineral Averages are from 177 QEMSCAN samples across the Midlothian deposit

Davis Tube Recovery Tests

Metallurgical testing was conducted at the XPS laboratory in Sudbury, Ontario on four samples representing different mineralization styles taken from the Midlothian drill core. The samples were prepared to target variability in mineral grain sizes and serpentine speciation. The samples were subjected to Davis Tube testwork by grinding the samples and passing them through a magnet with wash water. The recovered magnetic fraction was then characterized as the "Davis Tube Recoverable" or "DTR" fraction. The test results summarized in Table 2 show DTR grades ranging from 0.07-0.15% nickel and 2.6-3.6% iron. There is potential to increase the DTR grades through finer grinding as the primary grind size of ~190 µm was coarser than what has been reported by others (e.g., 75 µm).

Table 2. Davis Tube Test Results Summary

Table 3 summarizes the results of microprobe investigations for each of the four samples that were subjected to Davis Tube testing. The results demonstrate the high nickel tenor of heazlewoodite and awaruite minerals and the low nickel grade of serpentine. These results coupled with the Davis Tube nickel results are encouraging because they show that nickel has been liberated from the olivine minerals through the serpentinization process.

Table 3. Composite Samples - Nickel content by Mineral (%)

Statement Regarding TSX Venture

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Qualified Person and Data Verification

Stephen J. Balch P.Geo. (ON), VP Exploration of Canada Nickel and a "Qualified Person" as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel Company Inc.

About Canada Nickel Company

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. For more information, please visit www.canadanickel.com.

For further information, please contact:

Mark Selby
CEO
Phone: 647-256-1954
Email: info@canadanickel.com

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, drill and exploration results relating to the properties described herein (the "Properties"), the significance of drill results, the expected timing of the delivery of an updated resource, the ability to continue drilling, the impact of drilling on the definition of any resource, the potential of the Crawford Nickel Sulphide Project and the Properties, timing and completion (if at all) of mineral resource estimates, the ability to sell marketable materials, strategic plans, including future exploration and development plans and results, corporate and technical objectives, receipt of TSX Venture Exchange approval for the acquisition described herein and the completion of the transaction. 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, 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, failure to obtain regulatory or shareholder approvals. 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 press release 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. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, except as required by law.

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