Nickel 28 Announces Financial Results, Major Debt Repayment and New Analyst Coverage

TORONTO – (COMMERCIAL THREAD) – Nickel 28 Capital Corp. (“Nickel 28“or the”Company“) (TSXV: NKL) (FSE: 3JC) has published its results for the fiscal year ended December 31, 2020.

Company President and CEO Justin Cochrane is pleased to report that “with Ramu’s significant cash generation in the second half of 2020 and much higher nickel prices in the first half of 2021, we expect now to fully repay the company’s operating debt by mid-year, which is much earlier than our previous forecast. Mr. Cochrane continued, “MCC, our operating partner in PNG for over 17 years, continues to deliver outstanding performance from Ramu. ”

Highlights of the year 2020

The principal asset of the Company, an 8.56% interest in the Ramu Nickel-Cobalt joint venture (“Ramou”) Integrated in Papua New Guinea, had another exceptional year in terms of production, sales and cash flow. Ramu’s highlights during the year include:

– Full-year operating debt repayment of US $ 22.1 million, reducing the operating debt balance to $ 25.4 million as at December 31st, 2020.

– A new operating debt repayment of US $ 15.4 million on January 1st, 2021, reducing operating debt to less than US $ 10.0 million. This reimbursement reflects the share of Nickel 28 in Ramu’s operating surplus in H2 2020.

– Turnover of more than 410 million US dollars.

– Average cash costs for the year, net of by-product sales, of US $ 2.07 / lb. of nickel content.

– Production of 33,659 tonnes of contained nickel and 2,941 tonnes of cobalt contained in mixed hydroxide (MHP) making Ramu the world’s leading producer of MHP.

– MHP sales of 75,071 dry tons.

– An average carbon footprint over three years independently calculated of 15.6 tonnes of CO2e per tonne of nickel in MHP, considered par leading to the nickel industry average of 26.6 tonnes of CO2e per tonne of nickel as reported by Wood Mackenzie.

Strengths of Nickel 28:

– Strong year-end cash balance of US $ 6.4 million, providing ample liquidity to the Company.

– Non-recourse joint venture debt, as of January 2sd 2021, of US $ 91.6 million, of which US $ 10.0 million in operating debt and US $ 81.7 million in construction debt.

– Sale of two non-core assets in Papua New Guinea for milestone cash payments and royalty agreements on each property.

– New listing on the Frankfurt Stock Exchange, under the symbol 3JC.

– New Arlington Group Asset Management research coverage. The report can be found here: https://mcusercontent.com/bcf952a3fa8185f9a112ba741/files/f7cf6109-c3d6-4e28-a5f0-50f18d835452/Nickel_28_First_Final.pdf

“We continue to see significant tension in the nickel market, particularly for Ramu’s mixed hydroxide product. With LME nickel prices currently trading at around US $ 8.00 per pound of nickel, and Ramu fortunately not seeing any impact on production from the Covid-19 pandemic, we expect another bumper year. production, sales and cash flow of our Ramu JV, ”said Anthony Milewski, Chairman of the Board of Directors of the Company.

About nickel 28

Nickel 28 Capital Corp. is a nickel-cobalt producer through its 8.56% stake in the production, long-life, world-class joint venture of the Ramu Nickel-Cobalt operation located in Papua New Guinea. Ramu provides Nickel 28 with significant attributable nickel and cobalt production, providing our shareholders with direct exposure to two metals critical to electric vehicle adoption. In addition, Nickel 28 manages a portfolio of 13 nickel and cobalt royalties on development and exploration projects in Canada, Australia and Papua New Guinea.

Caution regarding forward-looking statements

This press release contains certain information that constitutes “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities laws. All statements contained in this press release that are not statements of historical fact can be considered as forward-looking statements. Forward-looking statements are often identified by words such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms. and similar expressions. Forward-looking statements contained in this press release include, but are not limited to: statements and figures regarding operating and financial results; statements on the prospects for nickel and cobalt in the global electrification of vehicles; statements relating to the repayment of Ramu’s operating debt of the Company; declarations relating to the impacts on production of the Covid-19 pandemic; and statements regarding the business and assets of the Company and its strategy for the future. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, most of which are beyond the control of the Company. If one or more of the risks or uncertainties underlying these forward-looking statements materialize, or if the assumptions underlying the forward-looking statements prove to be incorrect, actual results, performance or achievements could differ materially from those expressed or implied by forward-looking statements.

The forward-looking statements contained herein are made as of the date of this press release and, except as required by applicable securities laws, the Company assumes no obligation to update or revise them to reflect new events or circumstances. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No securities regulatory authority has approved or disapproved of the contents of this press release.

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