SPC Nickel’s 2023 Year in Review: A Message from CEO, Grant Mourre

Dear SPC Nickel Shareholders,

The past year has been transformative for SPC Nickel Corp. Not only have we advanced the West Graham project significantly we have also grown as a company, improving our operational performance while becoming more efficient. Though we have made impressive progress this year, we are not complacent. We recognize that this industry only rewards those who keep advancing existing projects while remaining alert for new opportunities and more efficient ways of doing things. We are fortunate to have exposure to a project portfolio that includes near-term cash flow potential at West Graham as well as projects like Muskox that have the potential to become Canada’s next major nickel district.

Maiden Mineral Resource Pending

In January, the announcement of a milestone agreement with Vale Canada consolidated the Crean Hill 3 deposit with our adjacent and contiguous West Graham deposit. At the time, I described this as a transformational growth opportunity for SPC Nickel due to the ability to optimize synergies during the exploration, development, and production stages of the project. Subsequent events have proven this view correct and our agreement with Vale has been an important growth catalyst. Since the announcement, we have concentrated on maximizing our resource definition program at West Graham and are now close to announcing a maiden Mineral Resource Estimate for the project to be released early in the New Year.

To get to this point, we ran a successful drill program that consisted of a total of 67 holes over 14,000 metres in two phases at West Graham in 2023. Among the highlight intercepts encountered were 7.90metres @ 2.48% Ni and 0.64% Cu (WG-23-026) and 20.2 metres @ 1.71% Ni, 0.46% Cu (WG-23-042). After 10 months of intensive drilling activity and conducting a $2.26 million financing to support our program, we accomplished all our objectives. These included confirming the extension of the West Graham mineral resource across the Crean Hill 3 Property, the identification of zones of higher-grade mineralization, and connecting the known surface mineralization with the subsurface mineral resource. Our next steps will include completing additional infill drilling with an emphasis around the higher-grade intersections near surface that would fit into the pit model. As we await the publication of our maiden Mineral Resource early in the New Year, we anticipate the project will be amenable to open-pit mining methods and will offer an economic path to production.

Core from SPC Nickel’s West Graham Project, Sudbury

Muskox’s Potential is Enormous

Though our focus this year has been on advancing West Graham, we remain excited about the prospects for our 65,000 ha Muskox Project in Nunavut. To give you some idea of the project’s footprint, the Muskox intrusion is exposed over a strike length of 125 kilometres. Historic work by Inco in the 1950s returned compelling grades including 1.75% Ni over 12.5 metres and 2.21% Ni over 13.74 metres. It is no exaggeration to say Muskox may represent Canada’s next camp-scale nickel district given its size and the grades encountered there. Muskox has enormous potential to play a vital role in providing nickel to the critical metals supply chain in future years. Unfortunately, our exploration efforts at Muskox were hampered in 2023 by the fires which have disrupted so many operations in Canada’s north. Despite this, our enthusiasm for the Muskox Project is undiminished and we look forward to continuing our exploration work there in 2024.

SPC Nickel at Muskox Project, Nunavut

Operational Excellence Underpins All That We Do

While the SPC Nickel team is laser-focused on delivering success at the drill bit, we are also extremely conscious that the mundane must be done well for the front end to succeed. It is important to not only do the technical work and bring the best geological knowledge to bear on unlocking our projects, but also to ensure a highly disciplined approach to allocating investors’ capital. Process dominates outcome and you expect us to spend your money where it is going to make a difference: on exploration. This means ensuring that budgets are respected, and our operational costs are rigorously monitored to deliver the best value for our shareholders. To give you some context for this, 83% of our total expenses have gone into our exploration efforts year-to-date. G&A, excluding marketing, accounts for 13% and marketing itself makes up 4% of the total. Having conducted a successful $2.26 million financing last June we know that access to capital is a privilege granted by investors, not a right of companies to exploit. We have also made every effort to secure non-dilutive sources of funding. One such initiative, the Ontario Junior Exploration Program (OJEP), provides up to $200,000 per project to cover 50% of a company’s eligible costs. SPC Nickel was accepted by this program twice in 2023 and therefore will receive up to $400,000 back on our eligible exploration expenditures. Shareholders can rest assured that we see stewardship of your capital as our priority.

Source: SPC Nickel Corp.

Investor Engagement

Inflation is very much on the mind of our investors, and we have seen this manifest itself in many forms, including the cost of attending investor conferences. While we welcome the opportunity to connect with our existing investors in person and share our story as often as we can, we are also conscious that you expect us to put your money towards advancing our projects first and foremost. As conference participation costs have soared, we – and many of our peers for that matter – have become increasingly judicious about which events we will participate in. Like everything else we do, we will commit marketing dollars only to those initiatives we feel offer a good return on our time and your money.

We appreciate the vital importance of communicating our plans and progress with our investors and stakeholders and always endeavour to ensure this is done in as timely and as clear a manner as possible. With so many cost-effective channels available to us via social media, email distribution and our mailing list investors can keep up with developments easily. We are making a point of sharing our story and other relevant news on social media so if you don’t follow us, please do so on LinkedIn or X (@Corpspc). Finally, if social media is not your thing, please make sure to reach out to us at [email protected].

The Global Picture Will Improve

I would be remiss to let this year pass without a nod towards the challenging macro backdrop that our industry has faced. The focus on a nickel supply glut out of Indonesia and a weaker than expected Chinese economic recovery has weighed on nickel prices in 2023. Despite this, we remain confident that Class 1 nickel sourced from Tier 1 jurisdictions like Canada will always be in demand. Legislation such as the US Inflation Reduction Act, with its requirements for North American mineral content in batteries and in their manufacturing only reinforces this point. Projects like West Graham tick all the boxes when it comes to jurisdiction and a near-term economic path to production. Our view remains that the best nickel jurisdiction globally, hands down, is right here in Sudbury.

Glencore Canada’s Nickel Rim South Mine

Closing Thoughts

SPC Nickel’s success is fuelled by the dedication of our team and the support of our shareholders. With that in mind, I would like to take this opportunity to thank the entire team for their hard work and dedication. Without their commitment we would not be in the fortunate position of looking forward to releasing our maiden Mineral Resource. I am also extremely grateful to our investors and stakeholders who continue to back us on this journey. Your engagement is key to the success of SPC Nickel, and I am humbled by your continued support.

On behalf of SPC Nickel’s Board and all of us here, I wish you a very Merry Christmas and look forward to sharing a year of growth and progress with you in 2024.

Sincerely,

Grant Mourre, CEO

Cautionary Note on Forward-Looking Information

Except for statements of historical fact contained herein, the information in this news release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of SPC Nickel. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, SPC Nickel expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

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.