FPX Nickel Subsidiary CO2 Lock Corp. Closes $1.1 Million Financing and Provides Technical Update on Standalone Carbon Capture and Storage Project

VANCOUVER, Sept. 28, 2023 - FPX Nickel Corp. (TSXV: FPX) (OTCQB: FPOCF) ("FPX" or the "Company") is pleased to provide an update on the activities of CO2 Lock Corp. ("CO2 Lock"), its majority-owned subsidiary focused on establishing standalone operations for the permanent storage of carbon dioxide in brucite-rich serpentinized peridotite ("BRSP") host rock. CO2 Lock has successfully completed its latest funding round, raising $1.1 million through a Simple Agreement for Future Equity ("SAFE") from third-party investors. Proceeds of the SAFE will be used to conduct additional field work and sample collection at CO2 Lock's wholly owned project site Sam, located southwest of Prince George, utilizing ultramafic rocks and the mineral brucite for ex-situ carbon dioxide removal ("CDR") or for in-situ CO₂ storage and sequestration as part of a carbon capture and storage ("CCS") value chain.

• Closing of $1.1M SAFE financing, funding CO2 Lock well into 2024
• Recent completion of regional structural geology assessment and surficial terrain mapping at 100%-owned Sam project in central British Columbia
• Planned commencement of significant, cutting-edge geophysics program to identify areas of higher porosity and permeability for groundwater flow

These technical programs advance CO2 Lock's understanding of key sub-surface parameters for future demonstration and pilot scale in-situ CO₂ mineralization programs. Groundwater characteristics for in-situ mineralization are driven in large part by faulting and fracturing of the rock mass; with this work, CO2 Lock will be able to prioritize areas with more potential for high hydraulic conductivity most suitable for injection, and to follow up with exploration well drilling for injection testing, including CO₂ and other tracer elements to demonstrate carbon mineralization in the field.

On March 30, 2022, FPX announced the formation of CO2 Lock as a self-funding entity to pursue geoscience-related CCS opportunities. FPX retains 100% of the carbon credits associated with CCS on its own properties, and will retain a right to use, free of charge, any intellectual property developed by CO2 Lock for the benefit of FPX's own properties.

CO2 Lock is working on three pathways to commercial CO₂ storage utilizing BRSP deposits; ex-situ rock, ex-situ water, and in-situ rock. All three pathways utilize labile magnesium cations which combine with CO₂ to form stable carbonate minerals. Both ex-situ pathways involve processing material from BRSP deposits above ground, mixing rock or water with CO₂ through various processes, and generating carbon minerals at surface. The in-situ pathway involves injecting CO₂ rich water into BRSP deposits at depth; this process is similar to Project Orca in Iceland where a joint venture between Carbfix and Climeworks utilize basalts to permanently mineralize CO₂ in-situ.

As part of CO2 Lock's ongoing site characterization work, a structural geology assessment was completed at the Sam project to identify major structures, faults, and stress regimes to identify prospective areas with high hydraulic conductivity. Work was conducted at multiple scales using regional scale data, as well as site specific information from outcrop and geophysics. Hydraulic conductivity is a key parameter for in-situ CO₂ injection; this structural lineament mapping will be utilized in the design of future exploration and well drilling as CO2 Lock looks to test in-situ CO₂ mineralization via injection in the near term prior to pilot scale injection design to permanently store captured CO₂.

In addition, CO2 Lock completed surficial geology and terrain mapping to characterize surface materials across the Sam project area. This work identified multiple areas with easy access to bedrock for ex-situ sample collection, as well as targets with limited cover for future ground-truthing and exploration as CO2 Lock looks to fully characterize site geology, mineral resources and CO₂ mineralization capacity.

CO2 Lock will also begin a towed transient electromagnetic ("tTEM") survey at the Sam site. This highly efficient system presents a new method of geophysics to map certain ground conditions and aquifer characteristics in the near-surface which are critical for shallow CO₂ injection testing. This method provides high resolution data that can be interpreted and integrated with other structural and geologic data to prioritize areas for follow-up drilling and pilot scale testing.

Located approximately 50 kilometers southwest of Prince George, BC, the 4084 hectare Sam project was staked in 2022 and hosts a large, serpentinized ultramafic body composed primarily of harzburgite, dunnite, and peridotite. This ultramafic assemblage is very similar to the Baptiste deposit in the Decar Nickel District owned by FPX Nickel Corp. ("FPX") where six years of foundational research on CO₂ mineralization was conducted, and which forms the basis for CO2 Lock's process. During the 2022 season, CO2 Lock initiated a rock sampling program to assess brucite mineralization of economically sizeable untested ultramafic rocks within the province of British Columbia. The Sam property contains ultramafic bodies identified by the BC Geological Survey through mapping and geophysical surveying along the same trend as the Decar Nickel District, and the Giga Metals Corp.'s Turnagain Nickel Project. These deposits and prospective bodies, including the Sam property, are all hosted within the Cache Creek Terrane, indicating similar geologically temporal and structural formation and obduction. These are key factors for brucite mineralization potential and increases the prospectivity of the Sam ultramafic bodies.

Dr. Peter M.D. Bradshaw, P. Eng., FPX Nickel's Qualified Person under NI 43-101, has reviewed and approved the technical content of this news release.

FPX Nickel Corp. is focused on the exploration and development of the Decar Nickel District, located in central British Columbia, and other occurrences of the same unique style of naturally occurring nickel-iron alloy mineralization known as awaruite.

On behalf of FPX Nickel Corp.

"Martin Turenne"
Martin Turenne, President, CEO and Director

Forward-Looking Statements

Certain of the statements made and information contained herein is considered "forward-looking information" within the meaning of applicable Canadian securities laws. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed in the Company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE FPX Nickel Corp.



Contact
please view the Company's website at www.fpxnickel.com or contact Martin Turenne, President and CEO, at (604) 681-8600 or ceo@fpxnickel.com.