On a Fast Track Back to Nickel-Cobalt Sulphide Production

On a Fast Track Back to Nickel-Cobalt Sulphide Production

Canadian Stock Exchange Ticker Symbol (CSE: NICO)

DisclaimerThis presentation (“Presentation”) is being issued by Class 1 Nickel and Technologies Limited (the “Company”) for information purposes only. Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.

Cautionary Statements Concerning Forward-Looking Statements

Certain information set forth in this Presentation contains “forward-looking statements” and “forward-looking information” under applicable securities laws (referred to herein as forward-looking statements), which include management’s assessment of future plans and operations and are based on current expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “may”, “will”, “should”, “could”, “anticipate”, “believe”, “expect”, “intend”, “potential”, “continue”, “target”, “estimate”, “proposed”, “preliminary” and similar expressions. Such forward-looking statements include, but are not limited to, production capacity and timing, mining and processing methods, by-products, product pricing, capital and operating cost estimates, project economics, future plans, the growth in the electric vehicle market and its impact on the demand for nickel and cobalt, and future supply of nickel and cobalt. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required under applicable securities laws. You should not place undue reliance on forward-looking statements, which speak only as of the date of this Presentation. Readers are advised to consider such forward-looking statements in light of the risks set forth in the Company’s continuous disclosure filings as found at www.sedar.com.

Cautionary Note to U.S. Readers Regarding Estimates of Mineral Resources

This Presentation uses the terms “Measured" and “Indicated" Mineral Resources and “Inferred" Mineral Resources. The Company advises U.S. investors that while these terms are recognized and required by Canadian securities administrators, they are not recognized by the U.S. Securities and Exchange Commission. The estimation of “Measured" and “Indicated" Mineral Resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. The estimation of “Inferred" Mineral Resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of Mineral Resources. It cannot be assumed that all or any part of a “Measured", “Indicated" or “Inferred" Mineral Resource will ever be upgraded to a higher category.

Scientific and technical information disclosed in this document has been reviewed and approved by Tony Donaghy and Eugene Puritch, P.Eng., both Qualified Persons as defined in NI 43-101.

EXCLUSION OF LIABILITY – Without limitation to the foregoing and to the maximum extent permitted by law, each of the Company and its Representatives accepts no liability (except wilful negligence or misrepresentation) for any loss or damage suffered or incurred by the recipient or any other person however caused relating in any way to this IM, including any omissions, except to the extent stated in a definitive agreement with such person when, as, and if it is executed.

Q4-2020 www.class1nickel.com 2

http://www.sedar.com/


Compelling Investment Attributes include:

• Enviable Location, logistics and infrastructure: Situated in a safe and reliable mining jurisdiction located only 45km northeast of mining city Timmins, Ontario, Canada, the projects enjoy year-round road access, availability of local skilled workforces and access to several operating process plants that are currently available to accept feedstock into their operations.

• Strategic land package geologically: Class 1 has assembled several highly sought after and difficult to find komatiite-hosted Nickel-Copper-Cobalt sulphide Mineral Resources into one valuable 20km2 land package. The company’s Timmins projects envelope a large “Z‟-shaped komatiite fold (komatiite rocks are a type of ultramafic volcanic rock that contain nickel sulphide) hosted in a mixed group of The Kidd-Munro assemblage rocks (OGS 1991).

• Existing nickel Mineral Resources: The company has commenced a program of work to expand its existing nickel inventory which includes: (i) The Alexo Resource and The Kelex Resource - two past producer mines that ceased operations in 2005 due to low nickel prices that remain open at depth and along strike; (ii) The Dundonald North deposit (formerly Dundeal) and The Dundonald South deposit - two magmatic sulphidedeposits with historic (non-NI 43-101 compliant) “resources” estimated, and an option to acquire the Somanike nickel deposit in Quebec

• Low OPEX: The company intends to re-enter direct shipping process plant feed operations ( Nickel – Cobalt – PGE’s) leveraging its close proximity to operating process plants and suitability to traditional environmentally sustainable production methods.

• Due to the quality of the projects which have remained unworked for a considerable period of time, the company has been able to attract highly regarded and credentialled career nickel experts who possess vast nickel exploration development and mining experience.

• Newly listed on the Canadian Stock Exchange ( Ticker symbol NICO ) under a very tight and clean capital structure.

On a Fast Track back to Nickel-Cobalt Sulphide Production

A past production operation ( historical 2.0-4.0% nickel head grade) with 2 high-grade NI 43-101 nickel sulphide Mineral Resources that remain open at depth and along strike (Nickel-Copper-Cobalt-PGE’s).

Class 1 Nickel & Technologies Limited offers an excellent opportunity to invest in a new company that owns advanced and expanding battery grade class 1 nickel and cobalt sulphidemineral resources*.

* The reader is cautioned that Class 1 Nickel has not done sufficient work to validate or classify the historical grades at the Dundonald Project. The historic grades are not NI 43-101 compliant and should not be relied on by investors. It is uncertain if further exploration will result in a Mineral Resource.

Highly Regarded Nickel Experts


Vast experience in resource exploration and development

• 22 years of frontline capital market experience.• Raised over $200m for public companies and responsible for financing,

administration, marketing and management of public companies.• Expertise in exploration management, resource development and PFS mine

study operations for nickel, copper and iron ore assets.

Tony Donaghy, BSc (Hons), P.Geo. Principal Geological Consultant• Internationally recognized expert in the global search for nickel, copper, cobalt

and PGEs with more than 25 years experience covering all continents and all stages of project development..

• Began his career with the Falconbridge Exploration team in Sudbury, ON, and prior to joining mining industry consultants CSA Global (an ERM Group company) was the Global Commodity Leader for Nickel and Platinum with Anglo American Exploration, responsible for the technical oversight of all Anglo-American nickel exploration activity globally.

Dr. Danielle Giovenazzo, PhD, P.Geo.Specialist Geological Technical Advisor• Highly regarded Nickel Expert with 30 years focused on nickel, copper and PGE

sulphide projects. • Her work with Falconbridge, Xstrata Nickel, Castillian Resources and as a

Director of Newgenco Pty Ltd covered brownfield, greenfield and continental scale project generation projects in North America, South America, West Africa, northern Europe and Australia.

• She is currently president of the OGQ (Quebec Professional Association of Geologists) and board member of SOQUEM the Quebec government lead partnered program.

• Holds a PhD on the Metallogeny of the KentyLake Ni-Cu-PGE deposit located in the Cape Smith belt.

Dr. Martin Tuchscherer, PhD, P.Geo.Specialist Geological Technical Advisor

• Seasoned and successful professional geoscientist with over 20 years’ experience across multiple commodities and companies.

• Martin participated in the discovery and definition drilling of the Black Thor and Black Label chromitite deposits of the Ring of Fire in Ontario. He also actively participated over several years in Ni-Cu-PGE grassroot and near mine exploration on the Nunavik Nickel Project with Canadian Royalties Inc. He helped with the discovery of the Lynx gold deposit with the Osisko Mining exploration team on the Windfall Lake project. He recently helped with the discovery of the Patwon gold showing on the Elmer Property in the Baie-James region of Quebec with Azimut Exploration.

Benjamin CooperPresident & Founder

Board of Directors


Strong financial backing and driven leadership in a rising class 1 nickel and cobalt market

• CEO & joint major shareholder of the Fitch Group, a property development and investment company in Australia.

• Extensive experience in strategic planning, commercial negotiations, business operations and asset management.

• Major shareholder in QEM Limited, a company with one of the largest vanadium resources in the world. Investor in Central Laboratories Ltd, a producer of products for the firefighting and dust suppressants markets. Director of DBRB Property Group a company which manages a diverse portfolio of other investments.

David FitchDirector

• Director with 25+ years’ management experience within mining and technology sectors for government, public and private sectors.

• Deep connection to high technology and implementation.

• An In-demand executive management level turnkey consultant, specializing in operational efficiency and economic optimization to customers including Microsoft, Macquarie, HP, as well as State and Federal government agencies in Australia and Singapore.

Mathew GibertsonDirector

• Partner of the law firm Colby Monet LLP, in Montreal, Quebec.

• Mr. Crevier is a member of the Barreau du Quebec and has practiced as a lawyer since 1975, primarily in the area of commercial law, assisting public and private companies in the natural resource and technology sectors.

• Mr. Crevier has acted as a director for Goldstar Minerals Inc., a TSX Venture-listed issuer, since September 2016.

David CrevierDirector

• Manager of Financial Reporting as MSSI a qualified Chartered Professional Accountant and Chartered Accountant.

• With 10+ years’ experience as a CFO, Aamer provides financial and management advisory services to public companies

• Mr. Siddiqui specializes in accounting, budgeting, tax and assurance advice services.

• Serving a number of exploration and mining companies listed on the CSE, TSX and TSX-V, Mr. Siddiqui leverages his skills and experience to provide integration for reporting issuers.

Aamer SiddiquiDirector & CFO

• Managing Director of DSA Corporate Services Inc. and has over 15 years of corporate secretarial, corporate governance, client relationship and marketing experience.

• She was previously the Director of Business Development & Marketing and Corporate Secretary at Independent Review Inc., the organization that runs Independent Review Committees that is a part of the governance structure of every investment fund in Ontario.

• She also held senior roles at Kingsdale Shareholder Services and Institutional Shareholder Services.

Monique HutchinsCorporate Secretary

Class #1 versus Class #2 Nickel


• Nickel sulphide mines produce nickel concentrates that are sold to smelters, which then convert the concentrate into the chemical nickel sulphate which is used by battery manufacturers (Class #1 Nickel) Sulphate

Nic

kel S

ulph

ide

Beneficiation

Sulphide Ore

Nickel Concentrate

Smelting

Low Nickel Matte

Converter

High Nickel Matte

Dissolution

High Concentration Nickel Solution

Purification/ Solvent

Extraction

NiSO4

Nic

kel L

ater

ite

HPAL

Laterite Ore

Leach Slurry

Counter-current decantation

Low concentration Nickel/Cobalt Solution

Precipitation

Mixed Sulphide Product

Dissolution

High Concentration Nickel/Cobalt Solution

Purification/ Solvent

Extraction

NiSO4

• In the case of nickel laterite mines, the ore is mined and then processed through a high pressure acid leach (HPAL) circuit, which is then further processed to produce nickel sulphate. The HPAL process is more complex, requiring more steps and, it has higher carbon footprint due to emissions from the process

• Nickel and Cobalt are used in the most dominant battery chemistries for electric vehicles (Evs) – NCM (Ni Mg Co) and NCA (Ni Co Al)

• Cathode and battery manufacturers are moving towards higher nickel and lower cobalt chemistries (migration from NMC111/622 to NMC811

• McKinsey and Co stated in their November 2017 report entitled “Nickel a class act” that lithium-ion battery demand for high-purity class 1 nickel may increase significantly from 33 Kt in 2017 to 570 Kt in 2025. In August 2020 Elon Musk, the CEO of Tesla called for more nickel production to meet demand. (Reuters: Melbourne/Beijing July 23, 2020)

• A high percentage of nickel sulphide exploration is concentrated in cold climates (Russia, Finland, Greenland and Canada) as most of the discoverable nickel sulphide deposits found around the equator or in hotter and wetter climates have mostly been converted, by nature, into nickel laterite deposits. Thus, nickel laterite deposits account for up to 70% of the known crustal nickel deposits on the earth.

Nickel Use Class #1 Nickel

Class #2 Nickel

Batteries ü û

Stainless steel ü ü

Battery & EV Market


Currently, battery manufacturers make up less than 5% of the global 2 Mt

nickel market

Roughly half of the 2 Mt market is derived from the mining of

nickel sulphide ore which then gets converted into Class #1

nickel products

Given the duration and expense of exploration and development, which is at least 10 years from discovery to construction, where will the nickel for the EV market come from??

Large scale adoption will require more EV

infrastructure; governments are increasingly pushing for a green economy that includes

renewable energy and EV adoption

In 2018, Glencore commissioned CRU to model the metal requirements of a 30% adoption rate of Evs in the global vehicle

market by 2030. Results were: • c4.1Mtpa of copper (18% of 2017 supply)• c1.1Mtpa of nickel (55% of 2017 supply) • 314ktpa of Cobalt (332% of 2017 supply)


The world’s largest Auto and Tech companies require our high-quality class 1 grade nickel-cobalt sulphide supply

• Class 1 Nickel’s Alexo Dundonald Project is an advanced permitted status, past producer with two high-grade NI 43-101 nickel sulphide Mineral Resources that remain open at depth and along strike (Nickel-Copper-Cobalt-PGE’s).

• The company intends to re-enter direct shipping process plant feed operations ( Nickel – Cobalt –PGE’s) leveraging its close proximity to operating process plants and suitability to traditional environmentally sustainable production methods.

• We anticipate that Nickel demand is likely to remain high as stainless steel production stays strong and electric vehicles (EVs) continue to rise in importance. Some market experts have calculated that nickel demand is expected to increase multifold under-construction lithium-ion battery production facilities come online as planned.

• As Nickel is one of the most important metal by mass to an EV company, and more than half of the world’s nickel production is simply not suitable for use in EV batteries, companies like Tesla and Apple and other giant auto companies require nickel sulphide to be mined in order that they can acquire the nickel product known as “nickel sulfate” which is used in the Lithium-ion battery cathodes.

• In a recent public statement Tesla underscored how important Class 1 nickel sulphate sustainability is –and they are leading the call for low carbon emission and sustainable sources of product. As the existing nickel sulphide mines globally are becoming depleted, the race is now on to bring to market new supplies of nickel-cobalt sulphide to the hungry supply chain.

The Alexo-Dundonald Nickel-Copper-Cobalt & PGE Projects, Timmins, Ontario, Canada

• A past production operation (with historical 2.0-4.0% Ni head grade) with two advanced high-grade nickel sulphide deposits with combined NI 43-101 and historical resources containing nickel –copper-cobalt-platinum and palladium.

• Comprises Alexo, Kelex, Dundonald North and Dundonald South deposits*.

• A large portion of the 20km2 property remains untested by drilling and geophysics.

• Current shallow mineralization extend along strike and down plunge.

• Situated 45 km northeast of Timmins with year-round road access, 92 granted exploration licenses covering 20km2 are located close to operating process plants that are currently available to accept feedstock into their operations

• Available infrastructure, power & local skilled labor.

• The last drilling program was completed at Alexo-Kelex in 2011, and Dundonald in 2005. Previous owners halted production in October 2005 due to low nickel prices.

• Class 1 Nickel & Technologies is currently expanding the current Alexo-Kelex Mineral Resource on a trajectory back into direct shipping process plant feed operation (Nickel – Cobalt – PGE’s).

• Total Indicated Mineral Resources of 571.7k tonnes at an average grade of 0.77% Ni.

• Latest technology geophysics and extensive expansion drilling campaigns will proceed to increase the current NI 43-101 Mineral Resource Estimate and thus accumulate important data required for a future Preliminary Economic Assessment report.


The right commodities in the right place and the right time


Alexo-Dundonald History


The Alexo-Dundonald Project consists of the Alexo, Kelex, Dundonald North & Dundonald South Nickel deposits*. The Alexo deposit sits on the northeast arm of a large “Z”-shaped komatiite fold, while the Dundonald deposit sits on the southwest arm of the fold. A past production operation ( with historical 2.0-4.0% nickel head grade) nickel sulphide resources remain open at depth and along strike (Nickel-Copper-Cobalt-PGE’s). The Alexo-Kelex Deposits contain NI 43-101 compliant Mineral Resources.

Alexo – Kelex : The current NI 43-101 Mineral Resource is classified at 571,700 tonnes of Indicated Mineral Resources grading 0.77% Nickel, 0.04% Copper, 0.03% Cobalt, 0.03 g/t Platinum, and 0.06 g/t Palladium and 67,200 tonnes of Inferred Mineral Resources. Two mineralized zones have been identified: the Alexo Main and Kelex Zones. Drilling and geophysics to the east of Alexo suggests the Alexo channel may continue at a shallow plunge from the known mineralization for at least another 120m. At Kelex, below the 100 metre vertical depth level, additional mineralization has been intercepted to 350 m vertical depth below surface in drilling that averages 75 m between drillholes. Potential within and below this horizon remains unexplored at depth and along strike. These deposits have demonstrated low risk, near term, small-scale production success. The opportunity exists to re-start production rapidly under the terms of the existing permits. The permitting baseline work already completed would significantly expedite plans to expand the scope of production plans for larger Mineral Resources.

Dundonald North*: The nickel zone located on the north side of a west-plunging antiform, 2.2 km southeast and along strike from the Alexo deposit. The zone has been traced along strike for 800 m and to a depth of 700 m below surface with the best mineralised intersections in the centre of the channel (with historical grades up to 3.04% Ni).

Dundonald South*: Drilling has outlined eight east-west nickel-bearing sulphide zones, (A to H), defined at shallow levels (<200 metres depth). Most of the lenses are open at depth and along strike. Historical Mineral Resources of 750,000 tonnes @ 1.50% Nickel Sulphide reported by Falconbridge have been estimated in the past, with future plans to confirm and extend the zones to a NI 43-101 compliant Mineral Resource Estimate. Fresh, high grade Ni-Cu-PGE sulphide mineralization has been trenched at surface by Hucamp Mines. A selected Hucamp Mines sample of the mineralization returned 34.82% Ni, 0.30% Co, 3.7 g/t Pt, 5.8g/t Pd, 0.90 g/t Au, 0.44 g/t Os, 0.47 g/t Ir, 0.84 g/t Rh and 2.4 g/t Ru.


The Alexo-Kelex Resources: Timmins, ON The Alexo and Kelex Mineral Resources extend along strike and depth and down plunge and will be extension drilled to add more tonnage to the current NI 43-101 Mineral Resource estimate. The majority of drilling and mining in the past 30 years has been shallow work (less than 100 m vertical depth below surface). The great bulk of the 20 km2 property surrounding the Alexo mine area remains untested by drilling and geophysics.


3D view of the Alexo & Kelex deposits looking along strike to the east with drill hole traces

Alexo Kelso discovered what became the Alexo Mine in 1907. The Alexo deposit has been mined during 3 periods:

• 1913 – 1919: Surface and underground mining for historical production of 51,857 tons at 4.4% Ni, 0.6% Cu between surface and 38m depth only

• 1934 – 1944: Mining of remnants of pillars from previous 1913 – 1919 mine workings; exact figures unknown

• 2004 – 2005: Historical open pit mining of 26,224 tonnes at 1.97% Ni, 0.20% Cu from Alexo and 3,900 tonnes at 1.68% Ni and 0.18% Cu from Kelex

(The reader is cautioned that Class 1 Nickel has not done sufficient work to validate or classify the historical mining estimates at the Alexo-Kelex Project. The historic mining

estimates are not NI 43-101 compliant and should not be relied on by investors. It is uncertain if further exploration will result in additional Mineral Resources.)

Local Geology and Mineralized Zones


Local Geology and Mineralized Zones (inclined 3D view)


NMineralized Zones

Fold AxisAnticline

Syncline

Drill hole

>0.3% Ni

Dundonald SouthZones (A-G)

Dundonald NorthZone

KelexZone

AlexoZone

Mafic Volcanics

Andesites

Felsic Volcanics

Ultramafic intrusive

Ultramafic Volcanics

Sediments

Target Areas

800m

Class 1 Property Boundary Dundonald East PGE’s

Alexo-Dundonald Resources

• Total NI 43-101 compliant Indicated Mineral Resources of 571.7k tonnes at an average grade of 0.77% Ni plus Inferred Mineral Resources of 67.2k tonnes at an average grade of 0.63% Ni and only includes the the Alexo and Kelex Mineral Resources, which extends along strike, at depth and down plunge.

• The majority of drilling and mining in the past 30 years has been shallow (less than 100 m vertical depth below surface) in the vicinity of the known deposits.

• The great bulk of the 20km2 property surrounding the Alexomine area remains untested by drilling and geophysics and there is almost no drilling elsewhere away from the known deposits.

• The property has never been surveyed using modern geophysical techniques.

• More drilling is planned to extend the current NI 43-101 Mineral Resource Estimate.


Alexo-Kelex: Existing Mineral Resources Open at Depth and Along Plunge


3D view of the Alexo & Kelex deposits looking along strike to the east with drill hole traces

KELEX

ALEXO

Aerial photograph of the Alexo & Kelex deposits

Kelex Deposit – Net Smelter Return Block Model


Surface

700m

Proposed DDH

MineralizedTrends

Indicated Mineral Resources amenable to open pit mining at an NSR cut-off of C$30/t.

Inferred and Indicated Mineral Resources were amenable to underground mining at an NSR cut-off of C$60/t.

• The Block model shows clear trends down plunge within the mineralized zone. There are intersections below limits of the block model but were too widely spaced from other drill holes to include in the Mineral Resource update.

• Extension drilling both down dip and along strike to the west and east is expected to build nickel tonnage and increase the grade.

W E

3D Image of Dundonald South

• Drilling has outlined eight east-west nickel-bearing sulphidezones, (A to H), defined at shallow levels (<200 metres depth). Most of the lenses are open at depth and along strike. Historical Mineral Resources have been estimated at 750,000 tonnes at 1.5% Ni by Falconbridge in 1991, with future plans to confirm and extend the zones to a NI43-101 compliant mineral resource estimate. Fresh, high grade Ni-Cu-PGE sulphide mineralization has been trenched at surface by Hucamp Mines. A selected Hucamp Mines historical sample of the mineralization returned 34.82% Ni, 0.30% Co, 3.7 g/t Pt, 5.8g/t Pd, 0.90 g/t Au, 0.44 g/t Os, 0.47 g/t Ir, 0.84 g/t Rh and 2.4 g/t Ru *



Dundonald South Zone Highlights & Nickel-Bearing Sulphide Zones (A to F*)


• A Zone: The A zone is a fracture system with brassy pentlandite/pyrrhotite mineralization consisting of thin fracture fillings, patches, and semi-massive to massive zones. The main portion of the A zone is a very steep west plunging to vertical high-grade nickel lens below a vertical depth of 150 m. This lens is 20–25 m wide and is open to depth, below a vertical depth of 260 m. The A zone PGE historical values are typically 1.5 g/t to 2.8 g/t, except for hole FND04-16 that returned 11.84% Ni and 17.55 g/t PGEs over 1.7 m.

• B Zone: The B zone it is located 10-20 m above and south of the A zone and is historical lower grade (1-3.8% Ni over 1-1.5 m) than the A zone and has low PGE values (<1 g/t.). The more significant B Zone historical drill intersections occur as a shoot in the keel area of the peridotite flow, including 3.77% Ni over 1.5 m (FND04-14) and 3.26% Ni over 7.65 m (HUF09-01). The shoot (10 m wide) is open to the west along a shallow plunge of 15 degrees.

• C Zone : The C zone is situated about 10–20 m stratigraphically above the B zone. Sulphide mineralization consists of fine-grained pyrrhotite/pentlandite disseminations and blebs. The zone is sporadic and discontinuous. A possible nickel mineralized shoot plunges 10° westerly and is open to the west.. The zone was known from two historical Falconbridge intersections of 3.73% Ni over 1.52 m and 4.17% Ni over 1.22 m. and 1.66% over 3 m in FND04-21.

• D Zone: The D zone occurs at the top of the E zone komatiite flow. The zone is sporadic and discontinuous. Sulphide mineralization consists of fine-grained pyrrhotite/pentlandite disseminations and blebs in peridotite flow rocks. The D zone historical nickel grades range from 1% to 3% Ni over narrow intersections 0.5 m to 2.6 m. Hole FND04-16 had the best intercept (2.24% Ni over 2.6 m) recovered to date. The up-plunge trend of the D zone contains Falconbridge DDH 64-10 that returned a historical grade 2.57% Ni over 3.5 m.

• E Zone : The E zone is situated within a trough at the base of the Central komatiitic peridotite flow sequence at about 200 m below surface. To the west it may be correlated with the C zone. The E zone is comprised of at least two stacked nickel mineralized horizons (E and E2) that dip very shallowly 15° to 20° to the south. The E and E2 horizons have been traced by limited drilling for 130 m. They are cut off to the east at 511755E and are open down plunge to the west. Sulphide mineralization consists of 3–10% very finely disseminated fine-grained brassy pentlandite and lesser brown pyrrhotite. The higher sulphide content sections of 5–10% and locally 20% contain blebs and fine stringers to microfractures of pentlandite/pyrrhotite. The best historical drill intersections of the E horizon were 4.67% Ni over 1.3 m and 1.6% Ni over 14.05 m .While the E2 horizon’s best historical drill intercepts were 4.63% Ni over 1 m and 2.58%Ni over 2 m.

• F Zone: The F zone occurs between 100 m and 200 m below surface. It has a shallow variable dip 40–70° to the south. It is continuous over 180m strike and disappears to the west, but is possibly open to the east. The zone is principally located stratigraphically 20–70 m below the G zone in two shoots both plunging west. F zone mineralization is comprised of blebs, fine stringers, semi-massive and massive brassy fine-grained pentlandite/pyrrhotite. The F zone PGE values lie in the range of 1–2 g/t and are generally lower than the G zone values. Significant historical drill intercepts from the upper shoot are 6.03% Ni over 1.5 m and 2.37% Ni over 4.0 m . This upper shoot is open up and down plunge. High grade historical nickel intersections from the lower shoot include 8.46% Ni over 1.6 m, 5.22% Ni over 2.1 m and 3.67% Ni over 2.1 m.


Dundonald South Zone Highlights & Nickel-Bearing Sulphide Zones (G*)


G Zone: The G zone was traced for a strike length of 600 m and is open to the east.

The G zone has four high grade nickel shoots all plunging southwest and open down plunge.

The eastern shoot is about 12m wide and plunges 25° to the west. It starts at a vertical depth of 65m and is open below a vertical depth of 100 m. Historically Falconbridge returned 1.49% Ni over 7.9 m when testing part of the shoot.

The central east shoot which is 15 m wide, begins below a vertical depth of 65 m and has a moderate plunge of 45°. It is open both up and down plunge and has returned encouraging historical intercepts including 4.67% Ni over 1.7 m.

The central west shoot is 15 m wide and begins at a vertical depth of 100 m and has a moderate southwest plunge of 45°and is open below a vertical depth of 160 m. Two significant historical drill intercepts in the shoot are 5.91 % Ni over 3.6 m and 4.37% Ni over 1.8 m. Falconbridge NS05-75 historical drill hole intersected a massive pentlandite zone over 0.3m that assayed 42.8% Ni, the highest ever nickel drill intersection to date on the Alexo-Dundonald Project.

The west shoot is the most continuous and the longest shoot of the four. It is 120 m long and 15 m wide. It plunges 45° to the southwest and remains open. Two historical drill hole intersections in this shoot include FNS05-30 with 11.19% Ni over 3 m, including a massive sulphide section of 23.7% Ni (5.1 g/t. PGE’s) over 1.3 m; and FNS05-40 with 5.99% Ni over 4.85 m including a massive sulphide section of 11.79% Ni (4.5 g/pt PGE’s) over 1.3 m.

Other notable high-grade historical nickel intersections in G Zone are FNS05- 73 with 18.7% Ni over 1.1 m, FNS05-79 wth 7.63% Ni over 5.7 m and FNS05-91 with 5.29% Ni over 3 m.

HOLE NUMBER

% NI % CU LENGTH (M)

FND04-01 0.62 0.0 2.30

65-29 5.74 0.24 8.83

FND04-34 0.56 0.02 6.10

HUF09-01 3.26 0.17 7.65

HUF10-01 4.95 0.11 1.55

FND04-29 4.90 0.19 16.4

• High grade Nickel-Copper-Cobalt drill intersections 8 Zones

• “G Zone” High Grade Historical Lenses of 115,000 – 140,000 tonnes @ 3.1 – 3.2% Ni (Non- NI 43-101 Compliant).

• Mineral Resource definition work will follow these plunging high grade shoots down dip and add tonnage and grade to the global project resource .

• Additional zones identified on the cross section appear to have continuity.


Dundonald South Zone Highlights* & Nickel-Bearing Sulphide Zones (H*)


• H Zone: The H zone is the stratigraphic highest of the nickel sulphide zones. It is a discontinuous zone typically located 30 m north of the southern Dundonald Sill. It is comprised of fine-grained disseminations to blebs of pyrrhotite/pentlandite within the upper spinifex textured thin peridotite flows (m-scale) of the Central komatiitic peridotite flow rocks. Historical nickel values typically range from 1% to 2.76% and are lower than the F and G zones. The highest nickel intersection was 5.57% Ni over 0.4 m and 1.06% Ni over 7.17 m.

Dundonald North Zone (formerly Dundeal):

• This nickel zone is located on the north side of a west-plunging antiform, 2.2 km southeast and along strike from the Alexo deposit. The mineralization occurs at the base of the Empire Komatiite Flow and is apparently controlled by a channel or depression in the footwall volcanic rocks. The zone has been traced along strike for 800 m and to a depth of 700 m below surface. It is presently unclear what the exact orientation of this channel is, but it is indicated to plunge moderately to the northeast near surface and steepen with increasing depth, parallel to that at the Alexo deposit to the north. Average true width of the mineralized interval is 2.4 m with the best historical mineralized intersections in the centre of the channel (with grades up to 3.04% Ni).

• Blebby and disseminated sulphides are the most common forms of nickel mineralization followed by occasional net-textured intervals and finally as rare massive veinlets in the footwall. Pyrrhotite and pentlandite occur in sub-equal amounts along with minor chalcopyrite and rarely sphalerite.

• The most significant historical nickel intercept returned from the near surface extent of the Dundonald North Zone was 1.86% Ni over 2.2 m core length. Two holes were drilled to test a deeper portion of the Dundonald North Zone returned historical results including 2.41% Ni over 4.25 m, 1.11% Ni over 9.5 m, and 1.34% Ni over 12.0 m (~7.6 m true width) including 1.61% over 8.0 m (~ 5.0 m true width).


-

25

50

75

100

125

150

175

200

-

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

C1N (A

lexo-K

elex)

C1N (D

undo

nald)

C1N (D

undo

nald

South)

C1N (G

lobal)

Grid M

etals

Sama

St Georg

e

Gigametal

s

FPX Nick

el

Blackst

one

Canad

a Nick

el

Talon

Meta

ls

Posei

don

Centau

rus

Panoram

ic

Lege

nd M

ining

Mincor

Chalice

Gold

Market Capitalization Ni % Ni Eq %

Global Nickel Sulphide Peers


The grade at Class 1 Nickel’s Dundonald South deposit* is a standout amongst its peers$927m$355m$341m


Source: Company reports, Bloomberg as at 14th October 2020. All market capitalization figures are converted to CAD.

$202m


Class 1 Nickel is planning on an aggressive exploration program to expand on its existing high-grade resource. The last drilling program was completed at Alexo-Kelex in 2011, and Dundonald in 2005.


Source: Company reports.

-

50,000

100,000

150,000

200,000

250,000

-

1.0%

2.0%

3.0%

4.0%

5.0%

C1N (A

lexo-K

elex)

C1N (D

undo

nald)

C1N (D

undo

nald

South)

C1N (G

lobal)

Wallbrid

ge M

ining (Gras

set )

Grid M

etals (

Makwa-…

Sama (

Samap

leu)

Talon

Meta

ls (Ta

marack)

Mincor (K

amba

lda)

Panoram

ic (Sa

vann

ah)

Blackst

one (T

a Kho

a)

Posei

don

Centau

rus (J

agua

r)

Oz Mine

rals (W

est M

usgra

ve)

Canad

a Nick

el (Cr

awfor

d)

FPX Nick

el (Dec

ar Dist

rict)

Gigametal

s (Turna

gain)

Karo

ra Re

source

s (Dumont)

Contained Nickel (t) Ni %

396kt 518kt 2.5Mt 4.8Mt726kt 5.7Mt278kt 6.6Mt



Class 1 Nickel’s brownfields projects are located in a Tier 1 jurisdictionCompany Name Project Name Location Status Resource Reserve Capex

Class 1 Nickel Alexo-Dundonald ON & QC, Canada Brownfields restart, exploration program and PEA planned for 2020 ü û N/A

Wallbridge Mining Grasset QC, Canada Greenfield, Initial Resource Estimate completed, Review of project data for exploration targeting ü û N/A

Blackstone Minerals Ta Khoa Vietnam Brownfields restart, maiden resource and PEA released in October 2020 ü û US$314m

Canada Nickel Co Crawford QC, Canada Greenfields, completing PEA by year-end 2020 ü û N/A

Oz Minerals West Musgrave Western Australia Brownfields, Pre-feasibility study released, working on environmental studies in 2020 ü ü AUD$730m

Centaurus Metals Jaguar Brazil Brownfields, Maiden resource released in June 2020 ü û N/A

FPX Nickel Decar B.C., Canada Brownfields, PEA released in September 2020 ü û US$1.67 billion

Gigametals Turnagain B.C., Canada Greenfields, completing met studies to update the PEA ü û US$1.3 billion

Grid Metals Makwa Mayville M.B., Canada Greenfields, plans to update PEA for in 2021 ü û CAD$300m

Legend Mining Rockford Western Australia Greenfields discovery, follow-up drilling underway û û N/A

Mincor Kambalda Western Australia Brownfields, DFS completed in 2020, mine development commenced ü ü AU$68m

Panoramic Savannah Western Australia Productions halted in April 2020, position to be restarted in mid-2021 ü û USD$36m

Poseidon Black Swan Western Australia Brownfields, plans to update restart study ü û AUD$30m

Waterton Dumont QC, Canada Feasibility study completed ü ü CAD$1.4bn

Sama Resources The Samapleu Cote d’lvoire Brownfields, PEA released in June 2020 ü û C$282 million

St George Mt Alexander Western Australia Greenfields discovery, deep drilling underway û û N/A

Talon Metals Tamarack Minnesota, USA Greenfields, Updated PEA, Resource Expansion in 2020 ü û US$258 million

Chalice Gold Julimar Western Australia Greenfields discovery, follow-up drilling underway û û N/A

Source: Company reports.

Capital Structure & Metals Prices


CSE Symbol: NICO

Shares Outstanding: 99,764,144

Options: Nil

Warrants: Nil

Market Capitalization: 74,823,108

Nickel Chart YTD (as of October 1, 2020)

Price as of Jan 2, 2020: U$13,070.00 per tonne

Price as of October 1, 2020: U$14,430.00 per tonne

Cobalt Chart YTD (as of October 1, 2020)

Price as of Jan 2, 2020: U$32,000.00 per tonne

Price as of August 10, 2020: U$33,925.00 per tonne

www.class1nickel.com 25

• Nickel Sulphate which is a derivative of Nickel Sulphide is used in EV battery cathodes.

• EV companies require battery capacity (raw materials) and the biggest raw material component in batteries is Nickel (80% nickel, 10% cobalt and 10% manganese).

• 54% of the cost of the battery is the cathode ( 44% of cathode is nickel).

• Class 1 Nickel significant advantages: high grade, high purity low cost of production magmatic sulphide, close to surface and close to infrastructure – short lead time back to production.

Nickel is really Tesla’s key battery ingredient –approximately 40kg of nickel goes into Tesla car and is a key to energy density.

Elon Musk, the single largest buyer of batteries on the planet, said in 2016, “Our cells should be called nickel-graphite cells. [there’s] a little bit of lithium in there, but it’s like the salt on the salad”.

Q4-2020

Contact Information


Toronto – Head Office:

82 Richmond Street East

Toronto, ON, M5C 1P1

Montreal Office:

600 - 2075 Robert-Bourassa

Montreal, QC, H3A 1L1

New York Office:

2200 - 675 Third Avenue

New York, NY, 10017

Tel: +1.416.454.0166

E: [email protected]

Website: www.class1nickel.com

Twitter: @ClassNickel

LinkedIn: @Class-1-NickelListed on the Canadian Securities Exchange

CSE: NICO

mailto:[email protected]

http://www.class1nickel.com/

https://twitter.com/ClassNickel

https://www.linkedin.com/company/class-1-nickel/

AppendixNickel Uses and NCM Market


Nickel End Use


• Following its invention in 1913, nickel-containing stainless steel rapidly became a popular choice in architecture, building and construction. Many structures using nickel-containing stainless steel have since become architectural design icons.

• Energy and power are essential for all societies. Nickel-containing materials are now being widely used to meet the demanding conditions of the oil and gas industries and power generation, including renewable energy.

• As the world’s population grows, reliable and efficient transport is becoming increasingly important. Demand is set to grow from 50 billion passenger kilometres in 2015 to 120 billion by 2050. Nickel plays a role in a huge range of transport modes.

• Nickel-containing materials and products play an essential role in helping healthcare companies advance global healthcare. They are part of manufacturers’ response to the continuing challenge of health. Many key nickel applications make an essential contribution to optimal medical solutions and prolonging lives.

• The safe and cost-efficient production of pharmaceutical compounds, fertilizers, plastics, petrochemicals and a host of other goods rely on stainless steel and nickel alloys.

• Food safety starts with rigorous hygiene, and nickel-containing stainless steels have long play a vital role in every link of the food chain.

• By 2050, the world’s growing population will mean that demand for water will exceed supply by 40%. Nickel-containing materials, such as stainless steels, lie at the heart of water purification, transport, collection and wastewater disposal.

• Stainless steels and other nickel-containing alloys are used extensively in the pulp and paper industry, providing excellent corrosion resistance against the process liquors and offering valuable mechanical properties.

Source: Nickel Institute

NCM is the Preferable Cathode Material for Li-Ion Batteries

• A Li-ion Battery is composed of four main parts: cathode, anode, electrolyte and separator.

• The Battery type is usually named after its cathode materials such as NCM battery or LFP battery. NCM is composed of Lithium, Nickel, Cobalt and Manganese while LFP is made up of Lithium, Iron and Phosphate.

• Due to its quality uniformity and high energy density, NCM batteries have become the most widely used component in the battery industry in total.

• According to Bloomberg New Energy Finance, NCM battery production capacity takes up 69% of the entire Li-ion battery production capacity.

• In the EV (Electric Vehicle) battery industry, while LFP battery adoption rate decreases, NCM battery adoption rate constantly increases and therefore, NCM battery adoption rate is expected to increase from 53% in 2019 to 64% in 2025.


Adoption rate per Chemistry in EV battery Market (global)

On a Fast Track Back to Nickel-Cobalt Sulphide Production

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