FLYING NICKEL’S MINAGO NICKEL PROJECT: THE FUTURE OF NICKEL MINING

Flying Nickel Mining’s (TSXV: FLYN; OTC: FLYNF) flagship Minago project in Manitoba covers 197 square kilometres of prime land and hosts one of Canada’s largest greenfield open-pit nickel sulphide deposits. Located in the southern region of Manitoba’s renowned Thompson Nickel Belt, North America’s second most productive nickel mining zone, Minago nickel sulphide project has received over C$70 million in investments since its launch in 1966.

Flying Nickel is currently pursuing a three-pronged development strategy at Minago, encompassing exploration, permitting, and the anticipated update to the 2010 feasibility study. Additional work is in progress to produce an updated MRE to fully capture the value of the Platinum metals group mineralization as well. The company is highly committed to engaging with First Nation stakeholders and cultivating mutually beneficial partnerships with local communities.

In August 2011, the Minago Project achieved a major milestone when the Environment Act License (EAL) was issued by the province of Manitoba. Subsequently, in December 2013, the previous project operator filed a noteworthy Notice of Alteration (NOA) to the EAL, addressing the relocation of the tailings management area to address First Nation concerns. Flying Nickel has since submitted substantial updates on the 2014 NOA to the Manitoba Govern- ment, signaling the unwavering commitment to responsible mining and openpit operations processing 10,000 tonnes per day at Minago.

Minago’s strategic location, traversed by Manitoba Provincial Highway 6 and a high-voltage (230 kV) hydroelectric power transmission line, positions it as a potential global leader in low carbonintensity nickel projects. The company is actively exploring various initiatives to minimize the carbon footprint of a prospective mining operation, including the examination of a fully electric mine fleet and utilizing renewable Manitoba hydroelectricity to power ore and waste processing. The Manitoba Agriculture and Resource Development Department (ARDD) has voiced support for the Minago Project, recognizing its pivotal role in supplying much-needed Class 1 high-purity nickel for nickel-lithium batteries that are vital to the era of fastgrowing EV markets.

Anticipated to possess an industry-leading low carbon footprint that surpass 99 per cent of existing global nickel production according to a study by Skarn Associates, a metals and mining ESG research company. Minago is poised to significantly reduce the carbon dioxide (CO2) emissions associated with conventional nickel production. The nickel concentrate from Minago is uniquely positioned to fuel high-performance nickel batteries, a crucial component powering the next wave of modern electric vehicles, thanks to its low GHG supply chain emissions and high-quality concentrate.

The project is also expected to complete a carbon sequestration study to maximize the low carbon footprint and capture in the Ultramafic tailings basin during the Feasibility Study Update.

When operation starts, the Minago project is expected to produce less than one tonne of carbon dioxide per tonne of nickel-equivalent production over the life of the mine, about 97 per cent lower than the industry average of 33.4 tonnes of CO2 in 2021, the study found.

Minago holds immense promise, reflecting the structural, geological, and mineralogical characteristics of deposits in the Thompson Dome to the north. The exploration journey so far has outlined a substantial nickel resource, both in open pit and underground reservoirs, totaling 721.6 million pounds of measured and indicated nickel and 318.9 million pounds of inferred nickel. The nickel mineralization at Minago continues beyond 350 metres in depth and along the strike, heralding a future of prolific mining.

Substantial volumes of nickel mineralization that are presently defined by drilling in the Nose Zone and North Limb Zone were excluded from the current MRE by the cut-off grades applied. The current optimized pit shell has a maximum depth of approximately 350 metres below surface.

per cent lower than the industry average of 33.4 tonnes of CO2 in 2021, the study found.

Substantial volumes of nickel mineralization that are presently defined by drilling in the Nose Zone and North Limb Zone were excluded from the current MRE by the cut-off grades applied. The current optimized pit shell has a maximum depth of approximately 350 metres below surface.

Source: Company Data

Exploration Potential

Source: Company Data

Table 1: Minago Project MRE Sensitivity Study At Lower Cut- off – Effective February 8, 2022

Minago holds immense promise, reflecting the structural, geological, and mineralogical characteristics of deposits in the Thompson Dome to the north. The exploration journey so far has outlined a substantial nickel resource, both in open pit and underground reservoirs, totaling 721.6 million pounds of measured and indicated nickel and 318.9 million pounds of inferred nickel. The nickel mineralization at Minago continues beyond 350 metres in depth and along the strike, heralding a future of prolific mining.

Source: An independent Minago mineral resource estimate (“MRE”) was published in February 2022 by Mercator Geological Services Limited (“Mercator”), Minago Project Mineral Resource Estimate – EffectiveFeb 8, 2022

Regionally, historical drilling completed five kilometres to the south of the Nose Zone (South Target), and three kilometres to the northwest of the North Limb Zone (O Limb Target) by Amax Exploration from 1969 to 1971 encountered nickel mineralization similar in style to that at Minago. The company believes that these two specific areas represent high-priority targets for further exploration and potential resource expan- sion. There has been cumulative 90,783 metres of drilling at the Minago Project by six operators since 1966. Additionally, Flying Nickel drilled 2,718 metres in 2022 after acquiring the Minago Project in February 2021.

The current Minago Mineral Resource Estimate (MRE) underscores its status as one of Canada’s largest undeveloped sulphide nickel deposits. In the upcoming year, the company plans to conduct core drilling programs to expand existing mineral resources and update the historic feasibility study, reinforcing its dedication to sustainable growth and environmental responsibility. To encapsulate, Flying Nickel’s Minago project epitomizes the future of nickel mining, heralding a new era of eco-conscious and community-focused mining practices, forming a compelling value proposition. ✘

Regionally, historical drilling completed five kilometres to the south of the Nose Zone (South Target), and three kilometres to the northwest of the North Limb Zone (O Limb Target) by Amax Exploration from 1969 to 1971 encountered nickel mineralization similar in style to that at Minago. The company believes that these two specific areas represent high-priority targets for further exploration and potential resource expansion. There has been cumulative 90,783 metres of drilling at the Minago Project by six operators since 1966. Additionally, Flying Nickel drilled 2,718 metres in 2022 after acquiring the Minago Project in February 2021. The current Minago Mineral Resource Estimate (MRE) underscores its status as one of Canada’s largest undeveloped sulphide nickel deposits. In the upcoming year, the company plans to conduct core drilling programs to expand existing mineral resources and update the historic feasibility study, reinforcing its dedication to sustainable growth and environmental responsibility. To encapsulate, Flying Nickel’s Minago project epitomizes the future of nickel