First Atlantic Nickel Acquires Ophiolite -X Project Targeting White and Orange Geologic Hydrogen, Carbon Capture, and Critical Minerals in Western Newfoundland

Grand Falls-Windsor, Newfoundland and Labrador - (GlobeNewsWire - Dec 11, 2025) - First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce it has entered into agreements to acquire a 100% interest in 18 mineral licenses comprising 500 mineral claims (covering 12,500 hectares or 125 km²) within the Blow Me Down and Lewis Hills massifs in the Bay of Islands Ophiolite Complex (“BOIC”) in western Newfoundland. The Company has branded this strategic land position as the "Ophiolite-X" project, recognizing its multi-commodity potential spanning geologic (natural and stimulated) hydrogen, carbon capture and storage, awaruite nickel-iron-cobalt alloy mineralization, chromite, cobalt, copper, and platinum group elements (“PGEs”). Peer-reviewed research by Memorial University has calculated theoretical CO₂ storage capacity for the entire BOIC equivalent to more than 13 years of global emissions¹ (source link), while natural springs within the complex discharge dissolved hydrogen generated through active serpentinization² (source link). This process is of such scientific significance that NASA researchers have identified the Tablelands massif in the BOIC as a Mars analogue site for studying serpentinizing environments³.

The BOIC comprises four large-scale ophiolite massifs, Table Mountain (Tablelands), North Arm Mountain, Blow Me Down Mountain, and Lewis Hills, representing one of the world's best-preserved and most complete ophiolite sequences. A recent study with funding from the Ministère de l'Économie, de l'Innovation et de l'Énergie (MEIE) of Quebec, evaluating natural hydrogen potential across Quebec (Séjourné et al., 2024), noted that the "potential for natural hydrogen in southern Quebec is not necessarily limited to these areas. Key areas of interest include: 1) ophiolite complexes, which are correlative with the Bay of Islands complex in Newfoundland where Szponar et al. (2013) sampled strongly alkaline and highly reducing water sources containing dissolved hydrogen⁴."

In the Stanford University study Techno-economic analysis of natural and stimulated geological hydrogen (Mathur et al., 2024⁵), researchers concluded that "While both natural and stimulated geological hydrogen present viable options for contributing to a sustainable energy future, practical considerations such as resource availability, production control, and scalability make SGH a particularly attractive option for long-term hydrogen production, especially when co-located with demand centers." The study estimates production costs of approximately $0.54/kg for natural geological hydrogen and $0.92/kg for stimulated geological hydrogen, both below the U.S. Department of Energy's $1/kg target⁶.

1Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters: an experimental case study with Bay of Islands Ophiolite rocks, western Newfoundland, Canada 2Geochemistry of a continental site of serpentinization, the Tablelands Ophiolite, Gros Morne National Park: A Mars analogue 3The Tablelands Ophiolite of Newfoundland: A Mars analogue site of present-day serpentinization 4Large-Scale Screening for Natural Hydrogen: a Quebec’s Perspective 5Techno-economic analysis of natural and stimulated geological hydrogen 6 https://www.sciencedirect.com/science/article/abs/pii/S0360319925038728

KEY HIGHLIGHTS:

1. Optimal Geological Hydrogen Source Rock: A 2024 study, with funding from the Government of Quebec, evaluating 27 potential natural hydrogen source rocks, identified ophiolite complexes as the first key area of interest for geologic hydrogen exploration, with the BOIC as the reference analogue. Documented occurrences include "strongly alkaline and highly reducing water sources containing dissolved hydrogen⁷", positioning the BOIC as the type locality for hydrogenprospective ophiolites in eastern Canada.

2. Active Geologic Hydrogen Generation: Active serpentinization within the BOIC produces dissolved hydrogen (H₂) in ultrabasic springs, where highly reducing conditions and pH values up to 12.3 are conducive to ongoing abiotic natural hydrogen production⁸.

3. Bulqiza Chromite Mine Hydrogen Discovery Analogue: Historic podiform chromite mineralization at Blow Me Down (32-40% Cr₂O₃, mined in 1918)⁹ and Springers Hill (up to 53% Cr₂O₃ in harzburgite)¹⁰ occur within serpentinized dunite-harzburgite sequences similar to Albania's Bulqiza mine in the Mirdita Ophiolite, where chromite (33-54% Cr₂O₃) is hosted in serpentinized harzburgite-dunite. A 2024 Science publication documented hydrogen with a purity of 84% venting at an estimated 200 tonnes per year from Bulqiza, one of the largest flows ever recorded, and noted that "places with similar geology should be good targets for finding other natural sources of hydrogen¹¹."

4. Samail Ophiolite Stimulated Hydrogen Analogue: The BOIC shares similar geological characteristics with Oman's Samail Ophiolite, including serpentinized peridotite sequences, brucite-bearing alteration assemblages and hyperalkaline, hydrogen-producing springs. In 2023, Eden GeoPower signed the world's first agreement with Oman's Ministry of Energy and Minerals to pilot stimulated geological hydrogen production in the Samail Ophiolite, positioning ophiolite complexes as optimal targets for both natural hydrogen exploration and stimulated production.

5. CO₂ Capture Industrialization Potential: Memorial University researchers conclude that, by "injecting CO₂-enriched waters into the subsurface, this process could likely be industrialized and require little energy input beyond drilling and pumping waters into the subsurface¹²."

6. Massive Carbon Capture Capacity: Research by Memorial University on the Project calculated a theoretical "total CO₂ storage capacity of 5.1 × 10¹¹ tonnes for the entire BOIC¹¹", equivalent to more than 13 years of global CO₂ emissions (based on 2022 global emissions of 36.8 Gt) and over 700 times Canada's annual emissions. Even 1% carbonation could account for more than 7 years of Canada's national CO₂ output¹³.

7. Most Efficient Carbon Capture Mineral: Brucite formed during serpentinization exhibits the highest CO₂ reactivity among ultramafic alteration products, requiring only ~2.5 tonnes of mineral

7Large-Scale Screening for Natural Hydrogen: a Quebec’s Perspective 8Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters 9 https://gis.gov.nl.ca/mods/ModsCard.asp?NMINOString?temp=n&NMINOString=012G/01/Cr%20002 10 https://gis.geosurv.gov.nl.ca/mods/ModsCard.asp?NMINOString=012B%2F16%2FCr+002 11A deep reservoir for hydrogen drives intense degassing in the Bulqizë ophiolite 12 https://cdnsciencepub.com/doi/full/10.1139/cjes-2022-0116 13 https://cdnsciencepub.com/doi/full/10.1139/cjes-2022-0116 to sequester 1 tonne of CO₂, compared with ~4 tonnes of forsterite, ~6 tonnes of serpentine, and >10 tonnes of basaltic glass. This positions brucite-bearing serpentinites as optimal targets for carbon capture operations¹⁴.

8. Awaruite (Ni₃Fe) Perspective Environment: Hydrogen is a required precursor for the formation of awaruite nickel (Ni₃Fe), a natural nickel alloy that commonly contains cobalt. The highly reducing conditions created by serpentinization generate the hydrogen needed for awaruite to form, providing direct mineralogical evidence of hydrogen-rich conditions^{15 16}.

Please call 844-592-6337 or email [email protected] to connect with Rob Guzman, First Atlantic Nickel's Investor Relations, for questions or more information.

14Concomitant generation of hydrogen during carbon dioxide storage in ultramafic massifs- state of the art with implications to decarbonization strategies 15H2-rich fluids from serpentinization: Geochemical and biotic implications 16 https://www.pnas.org/doi/10.1073/pnas.0405289101 Figure 01: Images of natural springs containing dissolved hydrogen from Tablelands Ophiolite, BOIC (Modified from Szponar et al. 2012) ¹⁷.

Figure 02: Hydrogen (H2) concentration in the 58 investigated 58 rock samples from various different ultramafic systems (modified from Giuseppe et al., 2024)¹⁸.

ACADEMIC RESEARCH DOCUMENTS CARBON CAPTURE CAPACITY, GEOLOGIC HYDROGEN PRESENCE, AND NEW GEOLOGICAL INTERPRETATIONS

The Company recently staked claims in the BOIC area following the publication of "Ultramafic rocks in the Bay of Islands Ophiolite complex, Newfoundland Appalachians" in LITHOS by researchers from the University of Ottawa and Geological Survey of Canada (Hattori et al., 2025). The research documents that the Blow Me Down Mountain massif contains an anomalously thick dunite layer, up to 5 km, separating the gabbroic unit from harzburgitic mantle tectonites. This thickness is significantly greater

17Geochemistry of a continental site of serpentinization, the Tablelands Ophiolite, Gros Morne National Park: A Mars analogue 18Natural hydrogen extracted from ophiolitic rocks: A first dataset than in typical ophiolite sequences and indicates exceptional targets for hydrogen generation, carbon sequestration, and nickel, chromium and PGE mineralization.

Peer-reviewed research conducted on the Blow Me Down massif by Memorial University, with funding from the Natural Sciences and Engineering Research Council of Canada (NSERC) and Nalcor Energy (Newfoundland and Labrador Hydro), demonstrated that these ultramafic rocks host exceptional carbon sequestration capacity while simultaneously generating natural hydrogen through active serpentinization. During serpentinization, brucite (Mg(OH)₂), a highly reactive magnesium hydroxide mineral, forms and represents the most efficient mineral for CO₂ capture, requiring only ~2.5 tonnes of mineral to sequester 1 tonne of CO₂. Critically, iron-bearing brucite (Fe-brucite) formed during serpentinization can undergo later-stage oxidation to generate molecular hydrogen (H₂), creating a dualfunction mineral system capable of both carbon capture and hydrogen production¹⁹.

Figure 03: Carbon Sequestration Experiment from First Atlantic’s Newly Acquired Ophiolite-X Property (Blow Me Down Massif); Photographs of white films on calcium hydroxide rich waters after the 4 hours, ultra-basic carbon sequestration experiments. (A) Without the addition of crushed peridotite and (B) with the addition of crushed peridotite.²⁰

19Concomitant generation of hydrogen during carbon dioxide storage in ultramafic massifs- state of the art with implications

20Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters: an

BAY OF ISLANDS OPHIOLITE: ACTIVE SERPENTINIZATION AND ABIOTIC HYDROGEN GENERATION

The Tablelands massif within the BOIC has been the subject of extensive scientific research documenting active serpentinization and hydrogen generation. The site has been designated as a Mars analogue by researchers for studying present-day serpentinization, contributing to the scientific goals of the Mars Science Laboratory (MSL), the ExoMars Rover mission, and the Mars Exploration Program Analysis Group (MEPAG)²¹.

Research published by Szponar et al. (2013) characterized ultrabasic, reducing springs at the Tablelands, reporting highly alkaline conditions with pH values up to 12.3 and highly reducing redox potentials. These geochemical signatures are characteristic of "Type II" waters associated with active serpentinization at depth and indicate an environment where hydrogen is actively generated through water-rock reactions.

The Tablelands springs represent surface expressions of a deeper serpentinization system, providing direct evidence that hydrogen-generating reactions are ongoing within the BOIC. This active system offers a natural laboratory for understanding hydrogen generation, migration and potential accumulation in ophiolite-hosted settings.

21The Tablelands Ophiolite of Newfoundland: A Mars analogue site of present-day serpentinization Figure 04: Photograph of Winterhouse ultra-basic pool. (B) Schematic planar and cross-sectional sketches depicting the various water inputs into the WHC2 pool — A and B are locations of ultra-basic reducing water discharging into the bottom of the pool, C is the location of overland flow that trickles into WHC2. (modified from Morrill, 2014)²²

WHITE VERSUS ORANGE HYDROGEN: GEOLOGIC HYDROGEN EXPLAINED

Orange hydrogen (also termed "stimulated geological hydrogen") is an engineering approach in which fluids are injected into Fe(II)-rich rock formations to accelerate natural hydrogen-generating reactions.

Geologic (or "white") hydrogen refers to naturally occurring molecular hydrogen generated through subsurface geological processes, primarily the oxidation of iron-bearing minerals during serpentinization of ultramafic rocks. Unlike hydrogen produced from fossil fuels (grey/blue) or electrolysis (green), geologic hydrogen forms continuously through water-rock reactions and has a minimal carbon footprint.

The best targets for stimulated hydrogen production are ultramafic rocks such as peridotites, which can produce 2 - 4 kg hydrogen per cubic meter of rock, up to four orders of magnitude more hydrogen than mafic rocks such as basalts²³ (Templeton et al., 2024). The BOIC, with its extensive serpentinized peridotite sequences, brucite-bearing alteration assemblages and documented hydrogen-producing springs, represents an optimal geological setting for both natural hydrogen exploration and potential future stimulated production.

22 https://sci-hub.se/10.3389/fmicb.2014.00613 23Low-temperature hydrogen production and consumption in partially-hydrated peridotites in Oman: implications for stimulated geological hydrogen production Figure 05: Schematic block diagram highlights the different types of hydrogen generated by natural processes and as industrial byproducts.²⁴

24Orange hydrogen is the new green

Figure 06: The geological hydrogen value chain comprising upstream, midstream and downstream components (from Mathur et al. 2024).²⁵

BRUCITE’S ROLE IN CARBON CAPTURE AND HYDROGEN GENERATION

Recent research published in Carbon Capture Science & Technology (Leila et al., 2025) highlights that brucite-bearing ultramafic lithologies represent optimal geological "sweet spots" for simultaneous CO₂ mineralization and H₂ production. Among ultramafic alteration products, brucite exhibits the highest CO₂ reactivity, requiring only approximately 2.5 tonnes of mineral to sequester 1 tonne of CO₂ (Kelemen et al., 2020)²⁶.

Figure 07: Weight of reacted minerals required for sequestering 1 ton of CO2 via mineral trapping at same reaction conditions²⁷ (data from Kelemen et al., 2020; Oelkers et al., 2008).

The serpentinization process at the BOIC produces brucite, serpentine and magnetite as primary alteration products. Peer-reviewed research by Memorial University (Gill et al., 2024) calculated a theoretical "total CO₂ storage capacity of 5.1 × 10¹¹ tonnes for the entire BOIC," a figure representing more than 13 years of total global CO₂ emissions based on 2022 output of 36.8 billion tonnes, and over 700 times Canada's annual emissions of approximately 670 million tonnes²⁸.

25Techno-economic analysis of natural and stimulated geological hydrogen 26Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters: an experimental case study with Bay of Islands Ophiolite rocks, western Newfoundland, Canada 27Concomitant generation of hydrogen during carbon dioxide storage in ultramafic massifs- state of the art with implications

28Evaluation of carbon dioxide sequestration via interaction with peridotite and peridotite-hosted groundwaters: an The study notes that brucite exhibits the highest CO₂ conversion efficiency among ultramafic minerals: brucite converts 0.63 metric tonnes of CO₂ per tonne of mineral (highest reactivity), olivine converts 0.51 metric tonnes of CO₂ per tonne of mineral, and serpentine/pyroxene converts 0.41 metric tonnes of CO₂ per tonne of mineral.

Laboratory experiments conducted by Memorial University on Blow Me Down peridotite demonstrated carbonation flux rates of −1.40 × 10⁻³ mol/m²min under controlled conditions, while field measurements at the Tablelands springs recorded flux rates of 1.9 × 10⁻⁵ mol/m²min-confirming that natural carbonation is actively occurring within the complex. The researchers conclude that the process is "kinetically favourable even at ambient conditions" and could be industrialized with "little energy input beyond drilling and pumping waters into the subsurface²⁹."

The 408 km² surface exposure of the BOIC, extending to an estimated depth of 1 km (408 km³ rock volume, comprising approximately 1.3 × 10¹² tonnes of ultramafic material), provides an exceptional target for both research and potential future carbon sequestration operations.

AWARUITE: HYDROGEN AS A REQUIRED PRECURSOR FOR NICKEL-IRON ALLOY FORMATION

Awaruite (Ni₃Fe) is a naturally occurring nickel-iron alloy that forms under extremely reducing conditions during serpentinization, conditions that require hydrogen. Research by Sleep et al. (2004) established that awaruite formation requires hydrogen partial pressures exceeding 50 bars at low temperatures, increasing to more than 320 bars at 200°C. The presence of awaruite in serpentinized ultramafic rocks therefore provides direct mineralogical evidence of hydrogen-rich conditions during alteration.³⁰

As noted by Sleep et al. (2004): "Metamorphic hydration and oxidation of ultramafic rocks produces serpentinites, composed of serpentine group minerals and varying amounts of brucite, magnetite, and/or FeNi alloys. These minerals buffer metamorphic fluids to extremely reducing conditions that are capable of producing hydrogen gas. Awaruite, FeNi₃, forms early in this process when the serpentinite minerals are Fe-rich." Awaruite could not form without the presence of abundant hydrogen, making it an exploration indicator for hydrogen-prospective serpentinite systems.

The highly reducing conditions documented at the Tablelands are consistent with the geochemical environment required for awaruite formation, indicating that awaruite mineralization may be present within the serpentinized portions of the BOIC.

First Atlantic's exploration programs will include systematic sampling to evaluate awaruite occurrence and distribution within the Ophiolite-X project area, with awaruite serving as both a potential nickel-iron resource and an indicator of hydrogen generation potential.

REGIONAL GEOLOGY AND PROJECT SETTING

The BOIC represents an exceptionally well-preserved section of Ordovician oceanic lithosphere that was obducted onto the Laurentian continental margin during the Taconic orogeny, approximately 470

29 https://cdnsciencepub.com/doi/10.1139/cjes-2022-0116 30H2-rich fluids from serpentinization: Geochemical and biotic implications million years ago. The complex comprises four major massifs arranged from north to south: Table Mountain (Tablelands), North Arm Mountain, Blow Me Down Mountain, and Lewis Hills.

Each massif displays a near-complete ophiolite stratigraphy, including basal tectonized harzburgite overlain by cumulate ultramafic rocks (dunite, wehrlite, pyroxenite), layered gabbros, sheeted dikes, and pillow basalts. The ultramafic sections have undergone variable degrees of serpentinization, with the Tablelands being particularly notable for hosting the hyperalkaline springs that document ongoing waterrock reactions.

The Blow Me Down Massif is distinguished by an anomalously thick dunite layer, up to 5 km, in the upper part of the mantle section, significantly thicker than in typical ophiolite sequences³¹. This duniterich section provides exceptional targets for both hydrogen generation (through ongoing serpentinization) and carbon sequestration (through carbonation of olivine and serpentine minerals).

The Lewis Hills Massif, the southernmost and structurally highest unit, exposes deep crustal and upper mantle sections, including significant chromitite occurrences. The massif has been the subject of historical chromite exploration and production, with the Springers Hill prospect representing the most advanced occurrence.

HISTORIC CHROMITE OCCURRENCES: CHROMITE-HYDROGEN ASSOCIATION

Documented mineral occurrences, recorded in the Newfoundland and Labrador Geological Survey's Mineral Occurrence Database System (MODS), demonstrate the ultramafic character and mineral prospectivity of the acquired ground, including historic chromite occurrences comparable to those associated with recent major hydrogen discoveries.

The Blow Me Down Massif hosts two chromite occurrences: Blow Me Down Chromite #1³² (historically mined, 32.2% Cr₂O₃) and Blow Me Down Chromite #2³³ (40% Cr₂O₃). The chromite occurs as disseminated to massive lenses, pods, and stringers within serpentinized dunite.

The Lewis Hills Massif hosts the Springers Hill chromite prospect comprising three occurrences: Springers Hill Main Showing (developed prospect that had produced a 43% Cr2O3 Concentrate) ³⁴, Springers Hill NE³⁵, and Springers Hill NW³⁶. Microprobe analysis of spinels from harzburgite at Springers Hill returned values of 51.73–53.16% Cr₂O₃, with samples containing up to 85% chromite by volume. The main mineralized zone extends over 700 m of strike length within dunite dykelets hosted by mantle tectonite harzburgite.

These podiform chromite occurrences share striking geological similarities with the Bulqiza chromite mine in Albania, one of the world's largest podiform chromite deposits within the Jurassic Mirdita Ophiolite. At Bulqiza, chromite grades range from 33-54% Cr₂O₃ within a >4 km thick sequence of serpentinized harzburgite overlain by dunite, directly comparable to the harzburgite-dunite assemblages

31Ultramafic rocks in the Bay of Islands Ophiolite complex, Newfoundland Appalachians 32 https://gis.gov.nl.ca/mods/ModsCard.asp?NMINOString?temp=n&NMINOString=012G/01/Cr%20001 33 https://gis.gov.nl.ca/mods/ModsCard.asp?NMINOString?temp=n&NMINOString=012G/01/Cr%20002 34 https://gis.geosurv.gov.nl.ca/mods/ModsCard.asp?NMINOString=012B%2F16%2FCr+002 35 https://gis.geosurv.gov.nl.ca/mods/ModsCard.asp?NMINOString=012B%2F16%2FCr+003 36 https://gis.geosurv.gov.nl.ca/mods/ModsCard.asp?NMINOString=012B%2F16%2FCr+004 hosting chromite at both Blow Me Down and Springers Hill. In February 2024, researchers published findings in Science documenting natural hydrogen outgassing from the Bulqiza mine at 84% purity by volume, with a minimum of 200 tonnes H₂ vented annually,representing one of the largest recorded hydrogen flow rates globally³⁷. The study concluded that "certain ophiolites may host economically useful accumulations of H₂ gas," highlighting the association between ophiolite-hosted chromite mineralization and hydrogen-generating systems.

The presence of similar chromite-bearing harzburgite-dunite assemblages within the BOIC, combined with documented active serpentinization and hydrogen-bearing hyperalkaline springs at the Tablelands, suggests analogous hydrogen-generation potential within First Atlantic's Ophiolite-X project area.

Summary of the Agreements

The Company entered into three separate agreements with arm’s length parties on December 3 and 4, 2025, to strategically expand its mineral holdings within the BOIC (collectively, the “Agreements”).

Pursuant to the first Agreement, the Company will acquire a 100% undivided interest in two mining licenses comprising 26 mineral claims. Consideration is the issuance of 260,000 common shares of the Company. The claims are subject to a 2.5% net smelter returns royalty (“NSR”) in favour of arm’s-length royalty holders, of which the Company may repurchase up to 1.5% for $1,000,000 at any time prior to commercial production, leaving a 1.0% NSR thereafter. Pursuant to the second Agreement, the Company will acquire a 100% undivided interest in thirteen mining licenses comprising 432 mineral claims. Consideration is the issuance of an aggregate of 3,800,000 common shares of the Company. The claims are subject to a 2.0% NSR, of which the Company may repurchase 1.0% for $1,000,000 prior to commercial production, leaving a 1.0% NSR thereafter. Pursuant to the third Agreement, the Company will acquire a 100% undivided interest in three mining licenses comprising 42 mineral claims. Consideration is the issuance of an aggregate of 650,000 common shares of the Company. The claims are subject to a 2.0% NSR, of which the Company may repurchase 1.0% for $1,000,000 prior to commercial production, leaving a 1.0% NSR thereafter. Closing of each Agreement is subject to customary conditions, including receipt of all required regulatory approvals, including TSX Venture Exchange (“TSXV”) acceptance. All shares issued in connection with the Agreements will be subject to a statutory hold period of four months and one day from the date of issuance, in accordance with Canadian securities laws and TSXV policies. There were no finder’s fees payable in connection with the Agreements.

Investor Information

The Company's common shares trade on the TSX Venture Exchange under the symbol "FAN", the American OTCQB Exchange under the symbol "FANCF" and on several German exchanges, including Frankfurt and Tradegate, under the symbol "P21".

37A deep reservoir for hydrogen drives intense degassing in the Bulqizë ophiolite