Mining MarketWatch

Valuation Commentary: Québec Nickel Corp. (CSE: QNI) (OTCQB: QNICF) (Frankfurt: 71B) is a Canadian-based critical metals exploration company focused on advancing its 100%-owned Ducros Critical Metals (Ni-Cu-Co-PGE-Au) Property in Québec, located in the prolific Abitibi Greenstone belt. The Abitibi region is world renown for world-class gold-copper deposits, however QNI has what is rapidly developing as one of Canada's most exciting nickel sulphide plays, increasingly described in mining circles as a "big unicorn" for the fact it is an outlier with grades ~4 - 5 times what is found in the region for nickel, but also spectacular elevated copper, cobalt, platinum, palladium, and gold.

Québec Nickel Corp. was formed in 2020 to specifically tackle Ducros, its maiden multi-phase drill program began in Q1-2022 when QNI completed just over 21,000 metres in 91 holes across the Ducros property. The majority of drilling in 2022 was focused on the Fortin Sill Ni-Cu-PGE Zone which is rapidly developing, starts at surface and appears amenable to a high-grade open pit scenario. Besides the Fortin Sill Zone, QNI also looked at targets that are highly prospective for new discovery in other areas of the property; setting up for home-run discovery potential in 2023 at the Ducros Gabbro and Ducros Ultramafic Sill Complex.

Québec Nickel kicked off its 2023 drilling program at Ducros in January, announcing a total of 20,000 metres to be completed at the Fortin Sill Zone, Ducros Ultramafic Sill Complex and Ducros Gabbro targets. For the 2023 drill season, starting in January, the drill rig was first put to work at the Ducros Gabbro target where soil samples came back elevated with nickel, copper, and cobalt (drill assays are pending). The geological team then ventured proximal where work was performed in 1987 (hole 87-6 which returned greater than 0.22% nickel and 120 ppm cobalt over the last 20 metres of the 106.7 metre long BQ diameter hole before being abandoned in bad ground), here enormous quality Ni-Co bulk tonnage potential exists -- the experienced nickel generation team on a theory of where to punch into the right rock type, looking for a home-run deposit. The April 19, 2023 news release "Québec Nickel Drills Over 250m of Serpentinized Ultramafic Rock at Ducros Sill Target & Provides Corporate Update" affirms the geological team is on to something potentially huge at the Ducros Sill target; in-short, QNI hit a nearly 300-metre-long intersection of variably serpentinized dunite and peridotite in hole QDG-23-505 (assays are pending). Results suggest the presence of large tonnage nickel-cobalt target with a geophysical expression spanning several hundred metres in width and multiple kilometers long.

The Globe and Mail published an April 17, 2023 Special Edition entitled "Will we have enough nickel for our EVs in 2030?" covering the supply, demand, and outlook for the hot commodity. In the article the authors noted that the largest Canadian nickel deposit is the Dumont deposit located in the Abitibi mining camp in Quebec. Dumont is a large scale, low-grade ultramafic type nickel-cobalt deposit. The rock-type that QNI just punched into in its April 19th release is similar to what Dumont has -- needless to say QNI's Ducros Sill Complex appears poised to get very exciting.

QNI currently has a nominal market cap of ~C$6.7M (~111.24 million shares trading near ~C$0.06). The company is also fully funded for its 2023 exploration program having raised ~C$8.7M over the holiday season; the majority of the company shares are institutionally held, the company is well capitalized to accomplish key objectives thru 2023. The share price of QNI appears poised for upside revaluation as continued news flow occurs, and as the significance of what Québec Nickel Corp. possesses is better appreciated by the market.

The geological team leadership, directors, and board of advisors are an impressive who's-who of nickel expertise with career accomplishments across the spectrum from nickel exploration & discovery, development, and major production (see CV's at the bottom of this article). Gary DeSchutter, M.Sc., P.Geo., is Vice-President of Exploration for Québec Nickel Corp., he started his career with Falconbridge and transitioned to Anglo American for 6 years as part of their global nickel generation team. Gary joined Québec Nickel in February-2022 -- in-short, he picked Québec Nickel because he knows nickel and was attracted by the anomalous Nickel-Copper-Platinum Group Element (PGE) occurrences and elephant-size potential at Ducros.

Québec Nickel Corp. appears on a trajectory with serious potential to yield an impressive first-pass Ni-Cu-PGE resource on its Fortin Sill Zone, possibly after its 2023 drill program -- one look at the recent drill results at the Fortin Sill Zone of the Ducros NI-Cu-PGE Property and it is apparent that the methodical approach of step-outs and following the continuity drilling is paying off...

Figure 1a. (above) Fortin Sill Zone Step-out Drilling hole 28 & 29. These step-outs are ~25 m SE from holes 9, 10, & 11 at the original showing; the geological team is already building a voluminous body of quality material. -- Image source: Company Q3-2022 Presentation, related news release: August 30, 2022 "Québec Nickel Corp Intersects 1.85% Ni, 1.65% Cu and 3.27 g/t Pt-Pd-Au Over 8.43 Metres In Step-out Drilling At The Fortin Sill Zone, Ducros Project, Abitibi, Québec". Seen in the image above are stellar grades (nearly 5% Ni-Cu and 6 g/t Pt-Pd-Au -- these are probably the best grades combined of Ni-Cu + PGEs + Gold in the history of the Abiti region). In image of core seen above you can see the foliation of sulphides with multiple events going on (good for the formation of nickel deposits), the material is running ~35% - 40% sulphides.

[Footnotes: Reported assay intervals seen in image are sample length weighted, the true width of mineralized intervals is not known due to insufficient information, 3E = Pt+Pd+Au]

The following Plan Map from the December 15, 2022 news release shows a sizeable Ni-Cu-PGE zone is being advanced at the Fortin Sill Zone:

Figure 1b. (above) Plan map showing the locations of selected drill holes completed at the Fortin Sill Zone with Ni + Cu assays (%) in relation to the outline of the Fortin Sill discovery outcrop. Drill holes with new assay results reported in the December 15, 2022 news release highlighted in orange i.e. QDG-22-30 through QDG-22-32 and QDG-22-38.

The following Plan Map from March 1, 2023 news release adds a a cluster of new holes collared last year way to the SW of the original outcrop showing, and suggests the zone is open both at depth and along strike. Assays are still pending from several of the drill holes in the cluster.

Figure 1c. (above) Plan Map. Assays are still pending from several of the drill holes in the cluster. Hole QDG-22-63 returned a 4.9-metre-long drill intercept averaging .77% Ni, .56% Cu, 340 ppm Co and .8 g/t Pt-Pd-Au.

Figure 1d. (above) Drill section looking 330° azimuth (75 metres thick) showing the locations of selected holes completed at the Fortin Sill Zone during the 2022 drilling program in relation to the Fortin Sill Zone discovery outcrop.

Below is an overview of the project and why investors seeking exposure to nickel as a commodity should consider establishing a long position in Québec Nickel Corp.

Nickel is a hot commodity: Nickel is a key component of most lithium ion batteries, enabling more energy density. With EV demand on the rise so is the demand for nickel. The trend has been for increased nickel content in EV batteries as energy density is further optimized by various manufacturers; ~20 kg to 50 kg of Ni is in a typical EV battery, depending on make. There is a shortage of the type of high-grade nickel that’s needed for EV batteries. Russia has traditionally been a source for a lot of this nickel, however it is now considered black-market. There is a lack of western-world domestic sources of nickel. To quote Elon Musk on July 22, 2020 “Any mining companies out there, please mine more nickel ... Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” Currently stainless steel production accounts for the majority (~85% - 90%) of nickel used globally, however demand from battery production is expected to increase steadily. Not all nickel can go into batteries, it has to be clean ‘class-1’, dirty laterite nickel from Indonesia, Australia, Philippines, and Brazil generally does not meet the grade – the purest nickel comes from sulphides (such as that which Québec Nickel Corp. has at Ducros). Trying to upgrade low-grade laterites involves extremely energy-intensive processes such as pressure acid leaching which results in an environmentally destructive CO2 footprint ~20 times more than that can be achieved from sulphide sourced nickel.

Figure 2. (above) Location map -- Located in the eastern Abitibi Greenstone Belt, northeast of Val-d'Or Québec. The Abitibi Greenstone Belt is ~700 km long and home to numerous Cu-Au producers. The Timmins area has had several past nickel producers.

● Located 80 km northeast of Val-d’Or, between the nearby towns of Lebel-sur-Quévillon and Senneterre (2 towns that are driven by mineral exploration and logging, providing QNI access to workforce and support (e.g. labs and drill contractors). Québec Nickel Corp. rents office space in Val-d'Or and is logging its core there. Additionally, Québec Nickel Corp. is populating a data-room on an ongoing basis to facilitate majors/entities that sign a CA (several have been signed to date [source: Nov. 17, 2022 news release]). Val-d'Or is a huge gold town with 4 operating mills with another 2 set to come online -- no need to sleep in tents and no need for choppers -- the team can hit the property in ~50 minutes from Val-d'Or.

● Provincial Highway 113 crosses east side of property + network of logging roads.

● There are 2 small airports ~15 minute drive either side of the property, N & S.

● Mining-friendly jurisdiction at the local, provincial and national levels. Québec Nickel Corp. has already begun environmental and community work behind the scenes.

Synopsis/opinion -- where this appears headed: On the side of the road, in mining-friendly Québec, with power and rail (possibly sending to Sudbury) -- Québec Nickel Corp. has, assuming continued exploration success, the ingredients to potentially become one of the lowest cost nickel concentrate producers. Drilling to date has indicated near-surface, high grade and bulk tonnage potential at the Fortin Sill target with significant upside potential as the Fortin Sill trend is +1 km in strike length. There is also similar potential at the other targets at the Ducros project.

Background/Property acquisition: The project originated from what was originally known about an outcrop that has since become the Fortin Sill discovery zone. The showing had been known since the 70s and 80s; the outcrop returned anomalous chip samples from prospectors, and the prospectors made a deal with Golden Valley Mines which was a Glenn Mullan company. Back in 2008 Glenn Mullan drilled two holes in the area of the showing and came back with ~20 m of ~.3 Ni, ~.4 Cu + Platinum and Gold. That was 2008 and the market went south resulting in the project laying dormant for the next ~13 years. The now Executive Chairman and Director of Québec Nickel Corp., David Patterson, recognising the coming demand for nickel and potential of the anomalous land package, contacted Glenn in 2020 and made a deal; essentially for a 9.9% equity position once public plus a 1.5% NSR -- they struck a deal and the company was created.

Figure 3. (above) Claims Map - Property Geology and Exploration Zones/Targets. The image above has been annotated / augmented (inset & description on right) by Mining MarketWatch Journal. The Fortin Sill Zone is the anchor, where a deposit of significance is being advanced, working/expanding from the known to the unknown with great success. Then off to the west of Fortin at the Ducros Sill, back in 1987, there was a series of 5 holes drilled by operators looking for elements other than nickel, records indicate they hit the right rock types; they hit dunite rock from from top to bottom, also ultramafics were intersected -- important ingredients for what QNI is looking for. They were not targeting geophysical anomalies as QNI is doing now. Also note that this sits next to a sulphur resource that was drilled off in the late 50s (Note: sulphur is an important ingredient for creating a nickel deposit). The purple squiggly lines are what the Québec Goverment has interpreted to be the right rock types (ultramafic intrusive rocks). Note that ultramafic sills and dykes all intrude into the light blue package of sulphide bearing meta-sediments -- again more encouraging ingredients to bake in a Ni-Cu-PGE deposit. Québec Nickel Corp. will be the first to put a drill hole into areas that are highly prospective for discovery.

Figure 4. (above) VTEM^TM Airborne Geophysics & Geology, with inset of channel dug at striped expression of outcrop at Fortin Sill Ni-Cu-PGE zone. In addition to geophysics completed earier in 2022 the VP of Exploration Exploration, Gary DeSchutter, also recently had high-resolution magnetics flown from drones in key areas to zoom-in and see micro structures in incredible detail. The geological team has in-depth magnetic imagery overlaying the geology with in-house lines representing its guess of large faults and structures; essentially translating to "X marks the spot" in some cases. Numerous high-quality coincident electromagnetic-magnetic anomalies have been identified throughout the project. 2-D and 3-D inversion modelling of the VTEM^TM and magnetic data are now being used to guide the drilling program.

Advancing the Fortin Sill Ni-Cu-PGE zone -- building quality 3-dimensional volume of material

NOTE: Now consider that step-outs 28 & 29 (not shown above) are ~25 m away to the SE (from holes 9, 10, & 11 at the original outcrop), the geological team is already building a 3-dimensional volume of material.

Figure 7. (above) Section at Fortin Sill Ni-Cu-PGE zone at outcrop looking ~NW. The colour red represents over 1% combined Ni-Cu. Holes 9 is Québec Nickel's confirmation hole stemming from the 2008 (historical) hole that Glenn had done at the outcrop; the geological team simply continued and drilled a hole ~45° and tilted the head and drilled two more holes (hole 10 & 11) on the expression of the stripped outcrop, yielding quality results of higher and higher grades.

Figure 8. (above) -- Drill section showing the locations of selected holes completed at the Fortin Sill Ni-Cu-PGE Zone in relation to historical hole GCF-08-07 and the Fortin Sill Zone discovery outcrop.

Figure 9 a. (above) -- Plan map showing the locations of selected drill holes completed at the Fortin Sill Zone in relation to the Fortin Sill discovery outcrop. The location of hole QGD-22-28 has been moved approximately two (2) metres to the SE from its actual collar location for illustrative purposes. Image sourced from Oct. 12/22 news release.

Figure 9 b. & c. (above) Plan map and drill section showing the locations of selected holes completed at the Fortin Sill Ni-Cu-PGE Zone. from October 19, 2022 news release "Québec Nickel Corp Drills Possible Extension Of The Fortin Sill Zone At Depth"; "The abundance, composition and texture of the sulphides in this portion of QDG-22-38 appear very similar to the mineralization encountered in hole QDG-22-09 earlier this year" ... "As previously reported, assay results from hole QDG-22-09 returned a 31 metres-wide intercept averaging 0.37% Ni, 0.40% Cu and 0.55 g/t Pt-Pd-Au that includes higher grade sub-intervals of 0.44% Ni, 0.51% Cu and 0.69 g/t Pt-Pd-Au over 18.50 and 0.55% Ni, 0.86% Cu and 0.86 g/t Pt-Pd-Au over 5.0 metres" ... "The sulphide-bearing ultramafic unit encountered in QDG-22-38 occurs approximately 60 metres below and 50 metres to the southwest of the currently known extents of the Fortin Sill Ni-Cu-PGE Zone".

2022 Drill Program Highlights at Fortin Sill Zone (presented in order progress occurred):

Figure 10c. (above) -- A 0.50 m sample of semimassive to net texture sulphides from QDG-22-09: contains 1.31 % Ni, 0.38 % Cu, 413 ppm Co and 2.12 g/t Pt-Pd-Au.

29.0 metres @ 0.36% Ni, 0.41% Cu, 167 ppm Co, 0.95 g/t Pt-Pd-Au, including high-grade subintervals:

● 9.0 m @ 0.70% Ni, 0.79% Cu, 271 ppm Co, 1.71 g/t Pt-Pd-Au over 9.0 m, and

● 4. 0 m @ 0.90% Ni, 1.01% Cu, 324 ppm Co and 2.39 g/t Pt-Pd-Au

QDG-22-11

32.67 metres @ 0.33% Ni, 0.32% Cu, 170 ppm Co and 0.57 g/t Pt-Pd-Au, including a high-grade
subinterval:

Hole QDG-22-28 cored through a 29.90 metre interval averaging 0.30% Ni, 0.31% Cu, 167 ppm Co, and 0.45 g/t Pt-Pd-Au which includes a higher-grade subinterval containing 0.46% Ni, 0.64% Cu, 209 ppm Co and 0.72 g/t Pt-Pd-Au over 3.24 metres.

QDG-22-29Hole QDG-22-29 intersected a 11.80 metre interval containing 1.44% Ni, 1.49% Cu, 461 ppm Co and 2.79 g/t Pt-Pd-Au which includes a higher-grade subinterval assaying 1.85% Ni, 1.65% Cu (3.50% Ni + Cu), 576 ppm Co and 3.27 g/t Pt-Pd-Au over 8.43 metres.

Figure 11a. (above) Results from 2022 channel sampling program at the Fortin Sill discovery outcrop. Channel sample assay results were draped on a georeferenced Fortin Sill discovery outcrop drone image (oblique view looking 345° Az and down 30°).

Also seen in the image is Table 4. (above) -- Summary of assay results from the Fortin Sill discovery outcrop channel sampling program completed [Reported assay intervals are sample length weighted]. When Québec Nickel first acquired the project the team stripped as much as it could, exposing the full expression of the outcrop -- essentially the whole outcrop is mineralized.

Updated Exploration Model for the Fortin Sill Zone

An analysis of all the data collected at the Ducros property this year has resulted in a refined geological/exploration model for the Fortin Sill Zone (Figure 2). A review and integration of relevant geophysical data (VTEMTM, drone magnetics, airborne gravity), along with historical and QNI drilling results in addition to recent surface geological mapping indicates the Ni-Cu-Co-PGE-Au mineralization at the Fortin Sill Zone occurs at or near the footwall contact of a large west-southwest-dipping embayment structure within the larger mafic to ultramafic Fortin Sill. The overall Fortin Sill intrusive body is interpreted to span several hundred metres or more in an approximate northwest-southeast trend and is characterized by the occurrence of a large blow-out, or embayment, at the Fortin Sill Zone. The conceptual geologic model is supported by several lines of evidence including:

Figure 11b. Plan view sketch map showing a conceptual geological model for the location and emplacement of the Fortin Sill Zone within the larger mafic to ultramafic Fortin intrusion. Shown is the gradational nature of the Fortin Sill Zone host rocks from an ultramafic footwall base (PXT = pyroxenite), through a mafic/ultramafic mid-zone (GBNOR = gabbronorite) to a mafic hanging wall top (GBRO = gabbro).

This refinement in the exploration model is being used to plan the next phase of work at Fortin Sill Zone and will likely include the drill testing of the newly modelled footwall contact along its entire surface, both along strike and at depth.

Other Noteworthy Target Areas - 2023 target areas shown in areas with dashed lines...

Figure 12 (above) -- Plan map of Québec Nickel’s Ducros property (red outline) showing the merged total field VTEMTM and drone magnetic data sets overlain on top of Québec Government geology. 2023 drilling target areas are indicated by dashed outlines. Drill targets comprise coincident geophysical anomalies (VTEM conductive features +/- magnetic highs responses +/- gravity features).

2022 efforts on Ducros Sill Complex: As announced on September 19, 2022, exploration drilling began in the central portion of the Ducros property at the Ducros Ultramafic Sill Complex (DUSC). The objective of the Phase I drill program at the DUSC was to obtain the first ever geological information from this ~2 kilometres wide by ~10 kilometres long exploration target area. This area is interpreted to be underlain by significant volumes ultramafic to mafic dikes and sills that have been injected into an extensive package of sulphide-bearing clastic metasediments and metavolcanics. As the target area is covered by variable thicknesses of overburden and contains little to no outcrop exposure, the current geological interpretation of the DUSC target area is derived from Québec Government geology maps that are in turn based on interpretations of historical airborne geophysical datasets.

The Company is happy to report its Phase I drilling program at the DUSC target has been successfully completed and the drill contractor has demobilized from the area. Over 3,650 metres in 10 holes were drilled along an east-west fence. This fence of holes spans more than 800 metres across the interpreted north-south strike of the regional geological trend. These holes targeted strong magnetic high geophysical features with well-defined flanking and/or coincident electromagnetic conductive anomalies, as highlighted by the VTEMTM airborne survey completed in Q2 2022 (see news release from April 27, 2022 for reference) and further refined by high-resolution drone magnetic surveys (refer to news release from June 13, 2022). All drill holes encountered rock types that support the geological interpretation of the DUSC, including but not limited to thick mafic to ultramafic intrusive units, graphitic metasedimentary seams, sulphide +/- oxide facies iron formation, felsic to intermediate metavolcanics and related breccias as well as sequences of silicified +/- sulphide-bearing exhalative/volcanogenic/volcanoclastic rock units. Core logging and sampling is in progress and assay results from the Phase I DUSC drilling will be reported when available.

2023 Ducros Sill Complex Exploration Update - Copy of April 19, 2023 news release:

Québec Nickel Drills Over 250m of Serpentinized Ultramafic Rock at Ducros Sill Target & Provides Corporate Update

Results suggest the presence of large tonnage nickel-cobalt target with a geophysical expression spanning several hundred metres in width and multiple kilometers long

Vancouver, British Columbia, April 19, 2023 – Québec Nickel Corp. (CSE: QNI; FSE: 7lB; OTCQB: QNICF) (“QNI” or the “Company“) is pleased to report drilling at its Ducros Ni-Cu-PGE project has returned long core lengths of serpentinized ultramafic rocks, including dunitic and peridotitic rock units. These results, coupled with results from the limited historical drilling completed in the immediate area, suggest the Ducros Sill represents a very large nickel-cobalt exploration target very similar to surrounding high-tonnage nickel-cobalt projects in the Abitibi Greenstone Belt. The company also provides a corporate update as Richard Dufresne, nickel expert and current director of QNI takes the helm as interim CEO.

Highlights:

QNI has drilled a fence of holes at the Ducros Sill target which cuts across a wide magnetic high feature representing the geophysical expression of the serpentinized portion of the ultramafic intrusion.
The fence of holes was designed to follow-up on historical drilling completed in 1987 which yielded 0.22% nickel and 120 ppm cobalt returned from dunitic rocks occurring in the last 20 metres of an abandoned 107-metre-long drill hole.
The three recently completed holes encountered long core intervals of variably serpentinized dunite and peridotite, including an almost 300-metre-long intersection in hole QDG-23-505.

Ducros Sill

The Ducros Sill target lies in the southern half of the two-kilometer wide by ten-kilometer long Ducros Ultramafic Sill Complex, in the south-central portion of QNI’s Ducros property (Figure 1). Historically, three widely spaced holes were drilled at the Ducros Sill target by Abitibi Resources Ltd. (“Abitibi”) in 1987 (Figure 2). Assessment report drill logs for these holes describe variably serpentinized, magnetic dunitic +/- pyroxenitic rocks with occurrences of trace amounts of native copper and brucite throughout their entire drilled lengths (Quebec Government report GM 47268). Notable results include hole 87-6 which returned greater than 0.22% nickel and 120 ppm cobalt over the last 20 metres of the 106.7 metre long BQ diameter hole before being abandoned in bad ground.

Figure 1. Geology map of Québec Nickel’s Ducros property (red outline) showing the individual mining claims that comprise the property land package, along with the locations of the Ni-Cu-PGE target areas. The regional geology is sourced from the Government of Québec’s online SIGEOM database.

Current Drill Results

Québec Nickel completed a series of holes this winter along an east-west fence approximately 100 metres north of the Abitibi hole 87-06 which cuts across the entire 600-metre-wide magnetic high feature (Figure 2). The ultramafic intrusion responsible for the magnetic response is understood to dip steeply to the west, as is the case for most of the stratigraphy in this part of the Ducros property.

Hole QDG-23-503 was collared on the west side of the targeted magnetic high and was drilled eastward at a dip of -45°, towards the centre of the ultramafic intrusion (Figure 2). The hole encountered a package of intercalated mafic and ultramafic intrusive rocks, including gabbro, pyroxenite and dunite, from 23 to 308 metres downhole depth before cutting a 142-metre-long interval of serpentinized dunite, believed to be the same unit encountered in hole 87-6 by Abitibi. The hole remains in this lower dunite unit until the planned end of hole at 450 metres depth. Of note is the occurrence of native copper on fracture surfaces within the altered dunite unit (Figure 3).

Hole QDG-23-505 was collared approximately 210 metres east of QDG-23-503 and drilled towards the east at a -45° dip to the planned end of hole depth of 402 metres (Figure 2). The hole collared in variably serpentinized dunite at 21 metres hole depth and remained in the altered ultramafic unit until 314 metres, a 293-metre-long intersection, where it encountered metasedimentary basement rocks. The ultramafic unit is cut by rare narrow <1.0m to ~2.0-meter core length intermediate to felsic dikes.

Hole QDG-23-504 was collared approximately 210 metres east of QDG-23-505 and was also drilled towards the east at a -45° dip to a depth of 243 metres (Figure 2). This hole collared in variably serpentinized dunite until 117 metres downhole depth, after which it entered the package of metasedimentary basement rocks.

Figure 2. Plan map of the Ducros Sill target area showing the locations of the historic Abitibi Resources Ltd. drill holes (open symbols) and the recently completed QNI drill holes (filled symbols) overlain on top of the total magnetic intensity image as derived from the compiled/combined VTEMTM and drone magnetic surveys completed in 2022.

Figure 3. Photograph of drill core from QNI hole QDG-23-503 at 341.70 metres depth showing abundant native copper on a fracture plane within the serpentinized dunite unit. NQ core, long axis of photograph is approximately 2.5 cm.

The digital Québec government geology for QNI’s Ducros project area, as sourced from the SIGEOM database, indicates the ultramafic intrusion in which the Ducros Sill target is included spans from approximately 500 metres north of the most recent drilling to approximately five kilometers to the south-southeast (Figures 1). Modelling of the VTEMTM and drone magnetic data collected by QNI during its 2022 exploration program supports this interpretation (Figure 4). There is no record of this multi-kilometer-long magnetic high feature being exposed at surface or having ever been drilled beyond what Abitibi Resources completed in 1987. If this geophysical anomaly is an expression of a serpentinized ultramafic/dunite intrusion, as currently hypothesized, it would rival the size of other high-profile large tonnage nickel-cobalt projects currently being advanced in the Abitibi Greenstone Belt.

Drill core from the three QNI holes referred to above are being processed and samples are being delivered to the preparation facility in Val-d’Or on a regular basis. In addition, representative half-core samples from each of the drill holes have been sent for quantitative analyses to determine the abundances of nickel-bearing minerals such as pentlandite, an iron-nickel sulphide (Fe,Ni)9S8, heazlewoodite, a nickeliferous sulphur-poor sulphide mineral (Ni3S2) and awaruite, a nickel-iron alloy (Ni2Fe to Ni3Fe). Awaruite and nickel-iron alloy are typically formed during the serpentinization of ultramafic rocks.

Figure 4. Plan map of the Ducros Sill target area showing the locations of the historic Abitibi Resources Ltd. drill holes (open symbols) and the recently completed QNI drill holes (filled symbols) overlain on top of the total magnetic intensity image as derived from the compiled/combined VTEMTM and drone magnetic surveys completed in 2022. The postulated multi-kilometer Ducros Sill Trend indicated.

This year, exploration drilling by the Company has focussed exclusively on testing targets that require winter conditions to access and drill. Now that the spring thaw is in full swing, work will resume at the Fortin Sill Zone where ground conditions allow for year-round access. Drilling at the Fortin Sill Zone will follow-up on some of the exceptional results achieved in 2022, including from hole QDG-22-29, which returned an 11.80 metre interval containing 1.44% Ni, 1.49% Cu, 461 ppm Co and 2.79 g/t Pt-Pd-Au that includes a higher-grade subinterval assaying 1.85% Ni, 1.65% Cu (3.50% Ni + Cu), 576 ppm Co and 3.27 g/t Pt-Pd-Au over 8.43 metres (see August 30, 2022 News Release for reference).

Core Processing & QAQC

Québec Nickel has implemented a quality assurance and quality control (“QAQC”) program for its drilling programs to ensure best practices for logging, sampling and analysis of its drill core as well as for the collection and analyses of rock samples. This includes the regular insertion of geochemical blanks, duplicates and multiple Ni-Cu-PGE-Au certified reference material standards (CRMs) into the sample stream.

Drill core is collected by Ducros Project personnel daily from the drill rigs and transported in secured core boxes to QNI’s core logging facilities in Lebel-sur-Quévillon. Logging is completed on laptops and data are captured using fit-for-purpose computer software.

Core destined for geochemical analyses is identified and labeled by core logging geologists and is then sawed in half by a diamond blade. One half of the NQ-diameter core sample is placed in a labeled and secured sample bag. The remaining half of the core sample is returned to its core box for archiving. All core samples are transported from QNI’s logging facilities to AGAT Laboratories’ sample preparation facility in Val-d’Or in secured and numbered rice bags by Project personnel. AGAT Laboratories is accredited to the ISO/IEC 17025:2017 and ISO 9001:2015 standards. Analysis for precious metals (gold, platinum, and palladium) is completed by Fire Assay with an ICP-OES finish while analyses for nickel, copper and 41 other elements are performed using AGAT’s 4 Acid Digest – Metals Package, with an ICP-OES finish.

Corporate Update

Québec Nickel is pleased to announce a leadership transition within the company. David Paterson, our current CEO, will be stepping down and moving to Executive Chairman and Director. Richard Dufresne will be stepping in as interim CEO as we continue the search for a new CEO to take us through the coming growth stage.

Richard Dufresne is a seasoned mining professional with over 35 years of experience in the industry, with a strong focus on nickel exploration. He has worked with both major and junior companies and has made significant contributions to the industry throughout his career. During his nine-year tenure with Falconbridge, he played a key role in exploring and developing the Raglan Nickel mine, which led to its production decision in 1996. He then spent five years overseeing nickel exploration for eastern Canada at Anglo American.

Mr. Dufresne’s expertise in nickel exploration will undoubtedly be a valuable asset to the company. We are confident that he will be able to provide the leadership and guidance needed to drive our exploration efforts forward and deliver value to our shareholders.

David Paterson has been instrumental in bringing Québec Nickel to fruition. As Executive Chairman and Director, he will continue to provide valuable guidance and support to the company.

“We are grateful for David’s leadership and contributions to the company,” said Richard Dufresne. “I look forward to working with him in his new role as we continue to build on the foundation that he has helped establish.”

QUALIFIED PERSON

Gary DeSchutter, M.Sc., P.Geo., Vice-President of Exploration for Québec Nickel Corp., and a Qualified Person (“QP”) as defined under National Instrument 43-101 (“NI 43-101”), has reviewed, and approved the scientific and technical content of this press release.

ABOUT QUEBEC NICKEL CORP.

Québec Nickel Corp. is a mineral exploration company focused on acquiring, exploring, and developing critical metals (Ni-Cu-Co-PGE) projects in Québec, Canada. The Company has a 100% interest in the Ducros Property, consisting of 282 contiguous mining claims covering 15,293 hectares within the eastern portion of the Abitibi Greenstone Belt in Québec, Canada. Additional information about Québec Nickel Corp. is available at www.quebecnickel.com.

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

On behalf of the Board of Directors

David Patterson
Chief Executive Officer and Director
1 (855) 764-2535 (QNICKEL)
info@quebecnickel.com

CAUTIONARY AND FORWARD-LOOKING STATEMENTS

This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this news release, other than statements of historical facts that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results may differ materially from those in the forward-looking statements. Factors that could cause the results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market, or business conditions. Investors are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates, and opinions of the Company’s management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates, opinions, or other factors should change.

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● Poorly exposed ~ 5 km X 5 km mafic intrusion largely inferred from regional magnetic data.

● Interpreted to be emplaced along intersecting deep-seated regional structures (regional magnetics).