Canada Nickel Company Inc. announced substantial metallurgical improvements that deliver increased recoveries of nickel, iron and cobalt, as well as enhanced iron magnetite concentrate quality, at its 100% owned Crawford Nickel Sulphide Project. Locked Cycle Test - Summary of Results Compared to the PEA Model: As expected, 100% of the nickel recovery in the flotation concentrate reported to the Standard Concentrate product because pentlandite was the primary nickel sulfide mineral in this sample. The nickel concentrate grade of 13% is 1% higher than target 12% grade for this product and the cobalt grade was 0.9% (no target in PEA). The iron and MgO content of the flotation concentrate was 39% and 7% respectively. PGM assays are pending. The iron content of the flotation concentrate represented 11 percentage points of the 45% overall iron recovery and 1 percentage point of the overall 21% chromium recovery. Locked Cycle Test Magnetite Concentrate Quality: The iron grade of 54% is a substantial improvement over the modelled grade of the 47.5% iron utilized in the PEA. The chromium grade of 4.5% is higher than the 3.3% chromium grade that was modelled in the PEA and the chromium recovery of 21% was lower than target recovery in the PEA of 27%. Of the nickel recovery, 1% was reported to the magnetite concentrate. Given the nickel and chromium content of this magnetite concentrate, it is expected to be utilized in the production of stainless steel and other alloys where the nickel and chromium are a valuable feed. As cobalt was not a payable metal in the PEA, it was not a priority during the PEA flowsheet development and optimization work. As it is expected to be a payable metal in the feasibility study, improvements in cobalt recovery are also a key focus of flowsheet development. Cobalt recovery was materially improved to 70% (versus of an expected target of 40% in the PEA) to the nickel concentrate which graded 0.9% cobalt. Before completing the LCT, flowsheet improvements were first demonstrated in open circuit tests on a range of samples from across Crawford with head grades between 0.30 0.43% Ni and range of mineral compositions. The open circuit tests demonstrated an increase of at least 6 percentage points in nickel recovery and average increases in nickel and cobalt recoveries to the flotation concentrates of 9% and 17% respectively. This result does not include the contribution of nickel from the magnetite concentrate, as this circuit was still under development during some of these tests. For three out of the four samples, modelled nickel recovery was achieved in the flotation circuit alone without any contribution from the magnetite concentrate. Metallurgical test work through the remainder of 2021 will focus on finalizing a flowsheet for the Feasibility Study which is expected to be completed in 2022. The Company will continue the flowsheet development work through the balance of the year and is continuing to target improvements in both recovery and quality of the concentrates. Nickel recovery from the slimes circuit was not included in the reported results and represents a further opportunity to improve flowsheet performance. The nickel recovery in the slimes concentrate was 3.4% with a corresponding grade of 3.3% Ni. This stream has the potential be in combined into the main flotation circuit and be upgraded to further increase nickel recovery.