Sumitomo Metal Mining Invests $14.4 Million for Strategic Equity Stake in FPX Nickel

FPX Nickel Corp., commonly referred to as "FPX," is delighted to announce a significant development in its financial landscape with the initiation of a private placement financing. This transformative move involves the entry of Sumitomo Metal Mining Canada Ltd. ("SMCL"), a wholly-owned subsidiary of Sumitomo Metal Mining Co., Ltd. (TSE: 5713), as a cornerstone strategic investor.

Upon the successful conclusion of the private placement, Sumitomo Metal Mining Canada Ltd. (SMCL) will emerge as a significant stakeholder, holding 9.9% of FPX's issued and outstanding common shares on a non-diluted basis. The infusion of capital through this private placement will be strategically utilized by FPX for various purposes, with a primary focus on exploration and development activities at its flagship Decar Nickel District. Additionally, the funds will support ongoing environmental baseline initiatives, readiness activities for feasibility studies, and general corporate and administrative needs.

Sumitomo Metal Mining Co., Ltd. (SMM), FPX's new strategic investor, is a globally integrated producer involved in mineral resource development, smelting, refining, and the production of battery materials and functional materials. With a robust business strategy, SMM has consistently partnered with high-quality operators, evident in its strong portfolio of joint venture overseas assets. These include substantial base metal operations held in collaboration with esteemed partners such as Teck Resources, Freeport-McMoRan, and Lundin Mining. SMM boasts extensive expertise, profound knowledge, and decades of experience in the production of various nickel products. The company aspires to elevate its nickel production capacity from the current 82,000 tonnes per annum to an impressive 150,000 tonnes per annum in the long term.

FPX's flagship asset, the Decar Nickel District, signifies a noteworthy greenfield discovery of nickel mineralization. This mineralization is predominantly in the form of awaruite (Ni3Fe), a naturally occurring nickel-iron mineral. The deposit is situated within an ultramafic/ophiolite complex, covering an extensive area of 245 km2 west of the Middle River and north of Trembleur Lake in central British Columbia. The Decar Nickel District hosts awaruite mineralization in multiple target areas within the ophiolite complex, including the Baptiste Deposit and the Van Target. The presence of this mineralization has been validated through rigorous methods such as drilling, petrographic examination, electron probe analyses, and outcrop sampling.

Since the inception of exploration and development activities in 2010, an impressive sum of approximately US $30 million has been invested in advancing the Decar Nickel District. This financial commitment underscores the dedication to unlocking the immense potential of this large-scale nickel mineralization discovery.