FATHOM NICKEL INC. EXPLORING FOR MAGMATIC NICKEL SULPHIDE DEPOSITS IN SASKATCHEWAN

By Ian Fraser P.Geo., CEO, VP Exploration, Director

Fathom Nickel Inc. is an energy metals exploration company that is targeting high-grade nickel sulphide discoveries for use in the rapidly expanding electric vehicle and green energy markets. The company is accelerating exploration at its two magmatic nickel sulphide projects; the Gochager Lake and Albert Lake projects both located in the prolific Trans Hudson Corridor in northern Saskatchewan. Both projects host historic resources and the Albert Lake Project, hosts the historic Rottenstone mine, which is recognized as one of the highest-grade (nickel, copper, platinum group metals) deposits of its type ever mined in Canada. The company has assembled two large land packages and, through methodical and successful exploration, aims to demonstrate the province of Saskatchewan can be host to world-class nickel camps like the Thompson Nickel Belt (MB) and the Raglan (PQ) operations that also occur within the Trans-Hudson Corridor.

Formed in 2015, the company was private until the spring of 2021 when it was granted a listing on the CSE and commenced trading in May of 2021. Exploration efforts in 2021 through to the end of 2022 were focused on the 90,460ha Albert Lake project, specifically in the area around the historic Rottenstone Mine. The historic Rottenstone deposit references the “Hill of Rotten Stone”, a gossanous outcrop approximately 50 metres in diameter by 10 metres in height, when mined in 1965-1969, produced approximately 26,000 tonnes grading 3.3 per cent Ni, 1.83 per cent Cu and >9.0 g/t Pd+Pt+Au (3PE)1.

Since 2021, Fathom has drilled 10,713 metres in 60 drillholes at the Albert Lake property and in the process has confirmed that the historic Rottenstone deposit does not occur in isolation and that the high nickel grade and metal tenor associated with the deposit is part of a significant magmatic nickel sulphide system. The company has discovered more Rottenstone mineralization south of the historic mine; drillhole AL21024 intersected 1.06 per cent Ni, 0.88 per cent Cu and 4.36 g/t 3PE / 7.47m. The company has determined the Rottenstone deposit is in fault contact with a northeast trending shallow dipping fault that appears to have truncated the deposit. Geophysical evidence suggests a possible footwall offset occurring at depth and approximately 200 to 300 metres west of the mine workings. At 400 to 500 metres west-northwest of the mine, Fathom drilling has defined a new zone (discovery) of ultramafic hosted NiCu+3PE mineralization: the Bay-Island Trend. The discovery of the Bay-Island Trend resulted from surface geochemistry, re-interpretation of 2008 VTEM survey results, follow-up drilling of mineralized ultramafic rock intersected in a 2003 drillhole, and the use of borehole electromagnetic (BHEM) surveys. The Bay-Island Trend consists of continuous nickel mineralization over a strike of 300+ metres, is open along strike; however, the company does recognize that nickel tenor associated with this

Rottenstone-like mineralization is lower. Drillhole AL21052; 0.62 per cent Ni, 0.29 per cent Cu and 0.21 g/t 3PE / 13.27m is evidence of this. Nonetheless, the discovery of ultramafic, Rottenstone-like mineralization away from the Rottenstone deposit is evidence of a significant, large magmatic nickel sulphide system occurring at the Albert Lake property. In summer 2022, Fathom was able to acquire by staking the final piece of the Albert Lake property. The TremblayOlson claim area defines an area two kilometres south-southwest of the Rottenstone mine that hosts historic mineralized ultramafic occurrences. In the fall of 2022, Fathom initiated a soil geochemical program in the area and results have defined a very robust ~ 2km x 2km multi-element in-soil anomaly. Nickel occurs up to 743ppm in soil and an individual soil sample returned 1.21 g/t 3PE. A summer 2023 ground EM survey in the Tremblay-Olson claim area has defined an EM conductor measuring 450m in strike and approximately 150m in width. Modelling results of this robust conductor place the conductor at a depth of roughly 300m below surface which is coincident with surface gravity inversion results which suggest a body of more dense rock at the same depth. Furthermore, Fathom recognizes this conductor occurs along an interpreted unconformity contact between older granitoid rocks and younger supracrustal rocks. It’s along this contact where favourable structural traps occur; traps that host the Rottenstone deposit and the Bay-Island Trend. The company looks forward to drill testing this target in Q1-2024.

Our second project, the Gochager Lake Project, has expanded through agreements and staking to the current 22,620 ha. The property is host to the Gochager Lake nickel deposit, a historic resource of approximately 4 million tons at an approximate 0.3 per cent nickel grade2. February drilling by Fathom was designed to confirm nickel-copper mineralization occurring in historic drillhole I-12 drilled in 1967 (0.58 per cent Ni, 0.11 per cent Cu / 290.4m), and for the first time analyse this mineralization for cobalt and 3PE. Also, for the first time, the company utilized BHEM to measure conductivity associated with zones of semi-massive to massive sulphide mineralization occurring within the historic deposit. Drillhole GL23003 intersected a broad zone of gabbro hosted disseminated sulphide mineralization containing thick zones of semi-massive to massive nickel sulphide mineralization. Results of GL23003 included 0.63 per cent Ni, 0.17 per cent Cu, 0.05 per cent Co / 170.95m with a thick zone of semimassive to massive sulphide mineralization grading 2.43 per cent Ni, 0.51 per cent Cu and 0.18 per cent Co / 18.10m. As expected, this style of mineralization produces very strong in-hole conductivity BHEM responses but importantly the BHEM recognizes very strong off-hole conductivity responses. Drilling, BHEM and surface EM all suggest the Gochager Lake deposit is open for expansion along strike to the northeast, the southwest and to depth below the historic boundary of the Gochager Lake deposit.

Fathom launched a second drill campaign in September of 2023 and expects to drill approximately 2,000 metres in six to seven drillholes. The company anticipates assay results will be available for dissemination towards the end of Octo- the first week of November.

1) The reliability of the historical data and resource estimate presented here cannot be confirmed by the authors, nor can the assumptions, parameters and methods used to prepare the estimates. The estimate is not considered NI43-101 Compliant by the definition of a “mineral resource” and further work is required to verify the historical estimate as a current mineral resource. Furthermore, records suggest (Saskatchewan Mineral Deposit Index #0958) that some of this historical resource has been exploited making a delineation of this mineral resource impossible. Fathom Nickel is not treating the historical estimate as a current mineral resource.

Semi-Massive to Massive Sulphide Mineralization Drillhole GL23003, Gochager Lake

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