Fathom Announces Mal Lake Nickel-Copper-Cobalt Mineralization - Further Evidence of "Blue Sky" Potential at Company's Gochager Lake Property

Calgary, July 11, 2024 - Fathom Nickel Inc. (CSE: FNI) (FSE: 6Q5) (OTCQB: FNICF) (the "Company" or "Fathom") is pleased to announce results of the recently completed core review of the historic Mal Lake Nickel occurrence. Historic Mal Lake drill core is available through the Saskatchewan Ministry of Energy and Resources' Precambrian Geological Laboratory in La Ronge, SK. The Mal Lake nickel occurrence falls within the Company's 22,000+ ha Gochager Lake Property.

Highlights of the exercise and interpretation of the results are as follows:

• pXRF*** detected cobalt values up to 2,984 ppm (0.29% Co) associated within nickel-copper mineralization in historic drillhole JC-Mal-6 drilled in 1967.
  • Note that cobalt was not assayed for at the time of the 1967 drilling.
  • There has been no drilling and no exploration at the Mal Lake Nickel occurrence [Saskatchewan Mineral Deposit Index ("SMD") I#0836] since 1967.
• pXRF detected several significant zones of nickel (>10,000ppm)-copper-cobalt (>1,000ppm) mineralization in historic Mal Lake drill core that was not previously split for assay.
• Ni/S, Ni/Cu and Ni/Co ratio plots using the Mal Lake pXRF data fall on and within the same array(s) as Gochager Lake assay data, suggesting:
  • Mal Lake has similar nickel tenor.
  • Mal Lake has similar nickel to copper ratio.
  • Very similar Ni/Co ratio of Mal Lake and similar host rock to Gochager Lake is suggestive of two very similar mineralized, mafic intrusions (gabbro) sharing a similar magma type and could very well be part of one original magma conduit system.
• Note: Mal Lake is located ~10km southeast of the Gochager Lake deposit (Figure 2).

Ian Fraser, CEO and VP Exploration stated, "Our recent review of available Mal Lake drill core is another example of Fathom's diligent exploration process. We knew there was nickel 10km southeast of the Gochager Lake deposit, but was it similar to, and of the same origin as the Gochager Lake nickel mineralization? We now have data suggesting the answer is Yes. This is a very significant development for several reasons. Firstly, there is tremendous exploration potential at Mal Lake. Mal Lake is a drill ready/BHEM target that we intend to drill during the next winter program. Secondly, how many more Gochager Lake, Mal Lake-like mineralized, mafic intrusions (gabbro) exist within the Gochager Lake property? Gochager and Mal Lake are 10km apart from one another but appear to have a common magmatic source. Nickel deposits tend to occur as multiple intrusions along structures. We think, based on our interpretation of the 2008 VTEM data set (MAG), that Gochager is one of several intrusions occurring along a controlling structure/conduit. We now have early indications that Mal Lake is emanating from the same magmatic source. This Mal Lake exercise has really opened our eyes to the regional blue-sky potential of this vastly under explored property. As we continue to expand the historic Gochager Lake deposit, we also look forward to exploring for and finding additional Gochager Lake/Mal Lake-like mineralized, gabbroic intrusives."

Table 1 illustrates assay values from two separate 1967 drill programs at Mal Lake. These drill results were obtained from the Saskatchewan Mineral Assessment Database ("SMAD"). For comparative purposes, and to illustrate the Mal Lake and Gochager Lake similar Ni/Cu ratio, four assay intervals from Fathom 2023 and 2024 drilling are included in Table 1. Refer to the QA/QC statement that suggests caution needs to be taken with the pXRF Co values and all pXRF values obtained from the 1967 drill core. The Mal Lake occurrence (SMID#0836) is described as a quartz diorite to gabbro plug intruding the surrounding metasedimentary rocks. Surface electromagnetic surveys detected conductivity in the area which led to 1967 diamond drilling that encountered quartz diorite to gabbro hosted sulphide bands consisting of pyrrhotite and chalcopyrite mineralization. Figure 3 is a historic geology, drillhole plan map of the Mal Lake area.

Table 1 - Historic (1967) Mal Lake Assays With 2024 pXRF Cobalt Values

* Original assay intervals are in feet. Fathom has converted feet to meters
** Length is drillhole thickness and not true thickness. Insufficient data to determine true thickness
*** Co (ppm) is the range of Co spot values collected through the sample interval. Refer to QA/QC statement

Figure 1 - Mal Lake Drillhole JCM-8 @ 138 feet (42.06m) split core, mineralized quartz diorite; pXRF scan @ 138.75 feet (42.29m): 21,146ppm Ni, 1,322ppm Cu, 1,480ppm Co; Note historic assay interval 38.98-43.19m in Table 1

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A two-person Fathom crew reviewed, scanned available drill core with pXRF, Mag Susceptibility meter, took conductivity measurements, and photographed the drill core. Most of the Mal Lake drill core has been reduced to representative samples of a drillhole and is not complete/continuous original drill core (the entire drillhole) record. Fathom was reluctant to take samples for individual assays due to the now limited drillhole record. Nonetheless, a comprehensive database was collected and has provided significant data towards our understanding of the geology and metallogenesis of the Mal Lake occurrence and its relationship to the Gochager Lake deposit.

Figure 2 - Gochager Lake Property Map

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Figure 3 - Mal Lake Historic Geology Drillhole Plan Map

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***Quality Assurance / Quality Control (QA/QC) Disclosure Statement

As part of its ongoing exploration activities, Fathom is utilizing a portable Vanta™ XRF Analyzer ("pXRF") to provide real-time lithogeochemical multi-element data on drill cores from current drillholes and on all available historical drill cores drilled by previous operators of the Albert Lake and Gochager Lake properties. The Vanta™ XRF Analyzer is a hand-held device that, during normal operation and Company protocol, is positioned on drill core every 0.5 meter through the length of a drillhole. The tool is held in position for a total 120 seconds - beam 1 (30 seconds), beam 2 (60 seconds) and beam 3 (30 seconds) to allow for an effective reading of elements occurring at that specific point, and at that specific surface of the drill core. All elements detected at that specific point; nickel, copper and cobalt plus key pathfinder elements, chrome and magnesium, are recorded. The reader is cautioned that pXRF data should be treated only as an indication of elements, as the accuracy of the beam position on a particular element is variable. All pXRF data is point data and the data collected at that point may not be representative of all the pXRF detectable elements occurring over an extended interval. pXRF nickel, copper and cobalt values from historic Mal Lake drill cores were derived from Mal Lake drill cores available to the public through the Saskatchewan Ministry of Energy and Resources Precambrian Geological Laboratory in La Ronge, SK.

As with drill core sampling a rigid QA/QC process is in place for the collection and analysing of pXRF data. Internal QA/QC protocols were also implemented to ensure that real-time pXRF geochemical data collected on site was of high quality and reliable. Spot scans of SiO₂ blank and certified reference material were conducted every 25 scans, alternating the blank and standards every 50^th scan. pXRF data collected on QA/QC material was periodically plotted in graphical form to check for data entry errors and instrument drift.

Qualified Person and Data Verification

Ian Fraser, P.Geo., CEO, VP Exploration and a Director of the Company and the "qualified person" as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of the Company.

About Fathom Nickel Inc.

Fathom is an exploration company that is targeting magmatic nickel sulphide discoveries to support the rapidly growing global electric vehicle market and to secure the supply of North American Critical Minerals.

The Company now has a portfolio of three high-quality exploration projects located in the prolific Trans Hudson Corridor in Saskatchewan: 1) the Albert Lake Project, a 90,000+ hectare project that was host to the historic and past producing Rottenstone Mine¹ (produced 28,724 tons @3.3% Ni, 1.8% Cu, 9.63 g/t 3E (Pd-Pt+Au) 1965-1969), and 2) the 22,000+ hectare Gochager Lake Project that is host to a historic, NI43-101 non-compliant open pit resource consisting of 4.3M tons at 0.295% Ni and 0.081% Cu², and 3) the 10,000+ hectare Friesen Lake Project located 40km southwest of the historic Rottenstone Mine and 30km northwest of the historic Gochager Lake deposit.

1 - The Saskatchewan Mineral Deposit Index (SMDI #0958) reports the production grades noted above from a small open pit. Fathom cannot confirm the production numbers nor a historic resource estimate that may have been in place ahead of production. The historic pit exists, and the Company trusts the production, as noted in SMDI #0958, to be accurate. The Company has performed test assaying of Rottenstone-type mineralization and results are consistent with production grades.

2 - The Saskatchewan Mineral Deposit Index (SMDI #0880) reports drill indicated reserves at the historic Gochager Lake Deposit of 4,262,400 tons grading 0.295% Ni and 0.081% Cu mineable by open pit. Fathom cannot confirm the resource estimate, nor the parameters and methods used to prepare the reserve estimate. The estimate is not considered NI43-101 compliant and further work is required to verify this historical drill indicated reserve.

ON BEHALF OF THE BOARD

Forward Looking Statements:

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