FPX Nickel Corp. announced results from the preliminary feasibility study ("PFS") for its 100%-owned Baptiste Nickel Project ("Baptiste" or the "Project") in central British Columbia, with an after-tax NPV8% of $2.01 Billion and IRR of 18.6% at $8.75/lb Ni. The PFS has been prepared in accordance with National Instrument 43-101 ("NI 43-101") and demonstrates the potential to develop a high-margin, long-life, large-scale, and low-carbon mine with unparalleled flexibility to produce either a high-grade concentrate (60% nickel) for direct feed into the stainless steel industry (the "Base Case") or further refining into battery-grade nickel sulphate, cobalt precipitate, and copper concentrate products for the battery material supply chain (the "Refinery Option").

PFS Overview. The Base Case outlines an open-pit mining project in central British Columbia which will produce an average of 59,100 tonnes of nickel per year in concentrate over a 29-year mine life. The project will be developed in a phased approach, with an initial mill throughput rate of 108,000 tonnes per day (Phase 1), followed by an expansion to 162,000 tonnes per day (Phase 2) funded from free cash flow after the initial after-tax payback period of 3.7 years.

The mining strip ratio averages 0.41 in the Phase 1, and 0.56 overall for life-of-mine (excluding capitalized pre-stripping). The Project will be supplied with low-carbon power from the BC Hydro provincial electricity transmission grid, resulting in an estimated Scope 1 and 2 carbon intensity of 2.4 t CO2/t nickel produced, placing Baptiste within the lowest decile of global nickel production. The Project will be accessed by a road system consisting of upgrades and expansions to an existing forest service road ("FSR") network.

All mine tailings and waste rock are proposed to be managed within a single integrated facility that will utilize open pit pre-stripping material and waste rock for embankment construction. The Refinery Option presents incremental capital expenditure of $448 million with an incremental operating cost of $1.02 per pound of nickel (C1 cost of $0.79/lb Ni, including credits for cobalt and copper byproducts), resulting in total NPV8% of $2,127 million. Further discussion of the Refinery Option is contained within the "Refinery Option" section near the end of this news release.

Mining & Mineral Reserves. The Baptiste deposit will be mined as a conventional large-scale truck and shovel operation with up to 60 Mt of material mined per year during Phase 1 and up to 120 Mt of material Mining per year during Phase 2. The mineral resource estimate (effective November 14, 2022, see FPX news release) for the Project is based on updated drilling from the 2021 season, informing the Baptiste deposit geological model. The overall processing strategy takes advantage of awaruite's unique characteristics in a simple flowsheet utilizing well-proven unit operations.

The PFS contributors completed engineering, design, and costing inputs for their respective scope, with the overall estimate consolidated by Ausenco Engineering Canada Inc. Sustaining and expansion capital costs have been estimated in alignment with AACE Class 5 standards, and closure capital costs have been estimated on an order-of-magnitude basis. Located in an urban setting, the refinery would benefit from the infrastructure, services, and labour which would be available at an integrated battery material processing hub, such as those being developed in eastern Canada and other locations worldwide. The refinery flowsheet has been optimized based on the results of FPX's hydrometallurgical testwork program.