21 st Century August 2020 Forward Looking Statements This - PowerPoint PPT Presentation

Nickel for the 21 st Century August 2020

Forward Looking Statements This presentation contains certain “forward looking statements” within the meaning of “forward looking information” under applicable Canadian securities laws, concerning the business, operations and financial performance and condition of FPX Nickel Corp. (“FPX Nickel”, “the Company”) . Forward looking statements include, but are not limited to, statements with respect to the future price of nickel and certain other commodities, the estimation of mineral reserves and resources, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of exploration activities, permitting time lines, requirements for additional capital, government regulation of mining operations, and environmental risks. Forward looking statements are statements that are not historical fact. Forward looking statements can be identified by the use of forward looking terminology such as “plans”, “expects”, “is expected”, “budget”, “target”, “targeted”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” . Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management that, while considered reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of FPX Nickel to be materially different from the Company’s estimated future results, performance or achievements expressed or implied by those forward looking statements, and the forward looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: significant depreciation of metals prices; changes in equity ownership; accidents and other risks associated with mining, exploration, development and production operations; unanticipated geological factors; possible variations in mineral resources and reserves, grade or recovery rates; delays in obtaining governmental approvals or financing on acceptable terms, or in the completion of development activities and other risks of the mining industry. Although FPX Nickel has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking statements, there may be other factors that cause actual results not to be as anticipated, estimated or intended. There can be no assurances that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. FPX Nickel does not undertake to update or revise any forward looking statements that are included in this document, except as required by applicable securities laws. Technical Information All technical information in the corporate presentation was prepared under the supervision of FPX Nickel’s Chairman, Dr. Peter Bradshaw, P. Eng., a qualified person consistent with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101 ”) . 2

FPX’s Decar Nickel District is one of the world’s best development-stage nickel projects Large Resource, Long Life Low Projected Costs High-Value, Strategic Nickel Product ● ● ● ➢ Projected to be among world’s 10 ➢ Potential for lowest quartile ➢ High-grade nickel product (63-65% largest nickel mines by annual output operating costs (US$3.13/lb Ni) Ni) with low impurities ➢ 24-year mine life with significant ➢ Low capital intensity compared to ➢ Suited for direct feed to stainless expansion potential recent global nickel mines steel and/or for EV battery market Excellent Location Modest Enviro Footprint Conventional Mining & Processing ● ● ● ➢ Located 80 km west of Mt. Milligan ➢ Non acid-generating host rock ➢ Bulk-tonnage, open-pit mining with mine (first production 2013) in BC low strip ratio (0.17:1 life-of-mine) ➢ No toxic heavy-metal leaching ➢ Supportive local relationships ➢ Magnetic separation followed by ➢ Benign tailings with significant flotation recovery ➢ Close proximity to power and rail potential for CO 2 capture ➢ Production of high-grade Ni product ➢ Zero-carbon footprint based on and by-product iron concentrate CO 2 sequestration in tailings 3

The Case for Nickel Glo lobal Refin fined ed Nic ickel el Suppl ply/Demand /Demand and Price ice 250 $20.00 Foreca recast st $18.00 200 $16.00 150 $14.00 100 000s Tonnes $12.00 US$ /lb 50 $10.00 - $8.00 (50) $6.00 (100) $4.00 (150) $2.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Implied Surplus/Deficit '000 tonnes (LS) Nominal LME Cash Prices US$/lb (RS) Data Source: Scotiabank April 2020 Commodity Price Outlook 4

FPX – Leverage to the Nickel Price January 2016 to July 2020 – FPX vs. nickel performance JJNTF = Bloomberg Nickel Sub-index Total Return, a single commodity sub-index composed of futures contracts on nickel 5

Decar Nickel District – Ownership History 2010 to 2013 November Cliffs 2015 expenditures of US $22 FPX Nickel re- 2008 to 2009 million toward establishes Surface completion of 100% project sampling and PEA in 2013, ownership via initial establishing payment of US discovery by 60% project $4.75 million FPX Nickel ownership to Cliffs November August 2014 2009 Cliffs Execution of announces option intention to agreement divest all non- with Cliffs core assets, Natural including Resources Inc. 60% Decar interest 6

Decar Nickel District Excellent Location – Central British Columbia ● Road accessible ● 5 km to rail line ● 100 km to hydro- power grid Blackwater Au Project: Receipt of federal & provincial environment assessment certificates in 2019 7

Decar Nickel District (245 km 2 ) Van Target • Drill-ready target • Surface samples up to 0.16% DTR Ni 1 B Target • Exploration target ~3 km 2 • 1 hole drilled, 1.7 km from Sid 263m of 0.132% DTR Ni 1 • • Open along strike and at depth Sid Target Baptiste Deposit (2013 PEA) • 2 holes drilled, 320m apart • 30,000 metres drilled 282m of 0.143% Ni in alloy 2 • • LOM average head grade 0.118% DTR Ni 1,3 163m of 0.126% Ni in alloy 2 • • Southeast Zone expanded in 2017 drilling • Open along strike and at depth (see page 9 of this presentation) 1. DTR = Davis Tube Recoverable Nickel 2. “Nickel in alloy” selective assay method 3. Per 2013 PEA (see page 15 of this presentation) 8

Decar Nickel District Exploration Upside Van Target B Target Sid Target Baptiste Deposit 9

Decar Nickel District – Baptiste Deposit Southeast Zone: Higher grade near-surface zone measuring 1,000 metres east-west by up to ● 600 metres wide Deposit remains open to southeast, northwest & northeast and at depth ● 10

Baptiste Deposit – 2017 Stepout Drilling Intersections Comments DTR Nickel Hole From To Length (%) 2010-1 3 321 318 0.145 2010-7 3 71 68 0.13 2011-5 45 303 258 0.145 2011-7 51 304 253 0.163 2012-36 31.1 600.1 563 0.156 Excludes 5.7 m dike 2012-37 64 600 494.9 0.147 Excludes 8.2 m and 33m dike sequence 2012-39 38.2 594.1 552.7 0.153 Excludes 3.1 m dike 2012-40 33 588 549.9 0.153 Excludes 5.1 m dike 2012-43 33.2 600 508.1 0.151 Excludes 22m, 9m, 14.2 m, 3.2m & 9.9 m dikes and minor wall rock 2012-46 28.6 600.1 487.4 0.15 Excludes 20m, 8m, 14m, 12m & 11m dikes and < 0.1% DTR Ni intervals 2012-50 34.5 229 194.5 0.147 2012-55 106 569.7 456.2 0.158 Excludes 7.4 m dike 2017-63 73 390 317 0.121 Excludes 4 m, 5 m, 25 m, 2 m, 1m, 1m and 1m dikes 2017-65 29 351 322 0.131 Excludes 1 m, 8 m, 1m and 2 m dikes 2017-67 55 349 294 0.151 Excludes 9 m and 1m dikes 2017-68 26 172 146 0.128 Excludes 1.2 m dike Southeast Zone (shaded area on map) ● Measures 1,000 metres east-west by up to 600 metres wide ● High-grade, near-surface potential for starter pit ● Table above shows average grade for holes clustered in Southeast Zone 11

Decar Nickel District – Baptiste Deposit 2018 Mineral Resource Estimate - 2018 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Potential to improve Baptiste mine plan by incorporating near-surface tonnage in a starter pit to the southeast of the 2013 PEA pit 12

Decar Nickel District – Baptiste Deposit Long Section View (image location below) - 2018 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Potential to improve Baptiste mine plan by incorporating near-surface tonnage in a starter pit to the southeast of the 2013 PEA pit 13