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North American Nickel Re-discovering a Large Nickel Target in Greenland

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OCEAN E QUITIES

This marketing communication is directed to professional investors only and is non-independent research. As such, it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of research.

Investment Opportunity

While North American Nickel has a diverse portfolio of nickel exploration assets in the

historically important nickel producing regions of North America, our main interest is

in the Company’s Maniitsoq project in an ice-free part of southwestern Greenland. The

latest drill results include an intersection of 124m at 0.81% nickel, 0.21% copper,

0.03% cobalt and 0.26g/t platinum group metals demonstrating that the target has

scale and robust nickel and by-product metal grades.

Maniitsoq has some very attractive features, paramount of which is the scale of the

project which has a mineralised footprint of over 1,000km2 known as the Greenland

Norite Belt. The mineralisation is associated with norite intrusions (a coarse mafic

intrusive rock, similar to a Gabbro) spread across the mineralised footprint giving

North American Nickel an exploration focus. There are abundant signals in the area

that there is a deep root to the intrusive bodies which include kimberlite dykes and a

carbonatite. The most interesting aspect of the project is a theory about how it was

formed. Geologists from the Danish and Greenland Geological Societies published a

paper on the possible petrogenesis of the area and put forward a compelling case for

Maniitsoq having been formed or reworked in the same way that the world-class

Sudbury deposit was formed, through a meteorite impact. There are several

indications that Maniitsoq was formed by an impact but the most compelling case in

the view of the authors is that there are no standard orogenic (mountain building)

processes that could be used to explain the geological features of the area. The paper

does not make the case for Maniitsoq being an exact replica of Sudbury or any other

impact related nickel deposits, but it does point to many similarities.

The history of the Sudbury region is well understood and we stress that there is a

long journey ahead of North American Nickel to test the full potential of Maniitsoq, but

the early signs are clear from the most recent drill holes that the Company has at

least two significant nickel targets within its portfolio.

Year in Review

The highlight of the year for North American Nickel were the results from a 9

hole/1,550m drill programme that tested some high priority targets identified from

the 3,000 line km geophysical survey flown across the norite belt earlier in the year.

Using helicopter borne time domain electromagnetic survey equipment North

American Nickel has been able to add a lot more detail to previous geophysical survey

maps. Previous surveys were constrained by the use of fixed wing aircraft that were

unable to fly close enough to the sharp topography of the area. Ground based

geophysical tools have also enabled the Company to differentiate disseminated and

massive sulphide mineralisation. Targeting these zones will allow the Company to

define zones of high grade mineralisation on a first pass as oppose to identifying

zones of variable mineralisation. This result also suggests that the Company will be

able to construct a robust resource model for the project based on combined

geophysical and drilling data.

Year Ahead

North American is currently planning a 6,000m drilling campaign at more of the high

priority targets as well as a further 450 line km of geophysical surveying. We expect

step out drilling around the Spotty Hill, Imiak Hill and Fossilik II targets on the

Maniitsoq property to be included in the drill programme. Drill results at Fossilik II

during 2012 showed interesting mineralisation at 0.3% Ni and 0.13% Cu but these

results did not match historical drill results of 2.24% Ni plus 0.63% Cu. It is expected

that inclusion of ground based geophysical survey results will help the Company to

capture more of the high grade mineralisation with future drilling. North American

Nickel also intersected kimberlite in the drilling at Fossilik. Samples have been sent

for micro-diamond and kimberlite indicator mineral analysis with results expected in

early 2013.

Nickel - GREENLAND 16th January 2013

Market Cap

Listing:Ticker

Share Price

Shares o/s

52 week High/Low

Cash

C$11.6m

TSX:NAN

C$0.15

77.76m

C$0.30/0.12

~C$1m

Source: Bloomberg

Analysts

Christopher Welch

+44 (0) 20 7786 4377

christopher.welch@oceanequities.co.uk

Adam Lucas +44 (0) 20 7786 4382

Matt Greene +44 (0) 20 7786 4387

Lisa Coate +44 (0) 20 7786 4388

Disclosures & Disclaimer

Ocean Equities is seeking investment business from North American Nickel

This report must be read with the disclaimer and disclosures on the final page that forms part of this report.

Ocean Equities Limited. Authorised and Regulated by the Financial Services Authority. Member of the London Stock Exchange.

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