Nickel 28 releases Ramu performance in the first quarter of 2021

Nickel 28 Capital Corporation (hereinafter referred to as “the company“(TSXV: NKL) (FSE: 3JC) Is pleased to provide the results for the quarter ended March 31, 2021. The company’s largest asset is Ramu Nickel Cobalt (hereinafter referred to as “Lamu“) Integrated business in Papua New Guinea. Nickel 28 currently has an 8.56% joint venture interest in the Ramu business.

Justin Cochrane, President and CEO of Nickel 28, said: “Due to reduced maintenance work this quarter, Ramu delivered a record first-quarter output.” “In addition, deducting by-product revenue The cash cost of only US$1.70 per pound of nickel contained is mainly due to the increase in the price of cobalt and the increase in the cobalt handling capacity of the mixed hydroxide products of the wood (“MHP“).” Mr. Cochrane continued.

The price of nickel on the London Metal Exchange (LME) has increased by more than 10% from the fourth quarter of 2020. The average price is US$7.97 per pound, which is higher than the previous quarter’s US$7.23 per pound. The current trading price is 7.75-per pound. $8.50. In addition, the price of cobalt has also increased significantly. Fast Market’s assessment of the standard grade this quarter was an average of $21.71 per pound, higher than the average of $15.73 per pound in the previous quarter. The increase in commodity prices and the increase in demand for Ramu MHP have had a positive impact on cash.

“Lamu is the world’s largest MHP producer, and battery manufacturers’ appetite for this product is increasing. This is particularly evident in the improvement in nickel and cobalt payment capabilities we have seen this quarter. Revenue in the quarter exceeded 1.6 According to current commodity prices, Nickel 28 should generate cash from its Ramu investment by the end of the second quarter of this year.”

As previously reported, the company’s current operating debt is less than 10 million U.S. dollars, and after the operating debt is repaid, 35% of Ramu’s free cash flow, which belongs to Nickel 28, will flow directly to the company.

In the quarter, the nickel content of MHP produced by Ramu was 8,805 tons, compared with 8,635 tons in the same period last year, an increase of 2%. Cobalt production was 800 tons, an increase of 80 tons over the first quarter of 2020, an increase of 11%. Shipments of MHP are the same as in the previous period, of which MHP contains 8,744 tons of nickel and 785 tons of cobalt. Ramu’s actual cash cost for the quarter was $1.70 per pound of nickel in the MHP (net of by-product credits). The company’s guidance remains unchanged, as Ramu is expected to produce 32,000 to 34,000 tons of nickel and 2,800 to 3,200 tons of cobalt in MHP through 2021.

The following lists Ramu’s operating and financial performance during this period and compares it with previous years, and points out that these figures have not been audited.

Answer: Nickel 28 has included certain performance indicators in this press release. These indicators do not have any standardized meanings specified by the International Financial Reporting Standards (IFRS), including actual cash costs. These non-IFRS measurement tables are designed to provide more information, and should not be considered in isolation or as a substitute for performance measurement standards established in accordance with IFRS. Other companies may calculate these non-IFRS measures in different ways. Please note that these numbers are unreviewed and may change.

B. These figures are unaudited and may change. The information provided above has not been audited by the company’s independent accountants, and should not be regarded as a substitute for the audited financial statements, nor should it be regarded by the company as a representative of actual financial performance.

About Nickel 28

Nickel 28 Capital Corp. is a nickel-cobalt producer with an 8.56% joint venture interest in the production, long-life and world-class Ramu nickel-cobalt mine joint ventures in Papua New Guinea. Ramu provides nickel 28 with the mass production attributable to nickel and cobalt, thus allowing our shareholders to have direct access to two metals that are essential for the adoption of electric vehicles. In addition, Nickel28 also manages 13 nickel and cobalt royalties portfolios in development and exploration projects in Canada, Australia and Papua New Guinea.

Warning note regarding forward-looking statements

This press release contains certain information that constitutes “forward-looking statements” and “forward-looking information” as defined by applicable Canadian securities laws. Any statements contained in this press release that are not historical facts can be considered forward-looking statements. Forward-looking statements are usually identified by terms such as “may”, “should”, “expect”, “expect”, “potential”, “believe”, “intend” or the negation of these terms and similar expressions. The forward-looking statements in this press release include, but are not limited to: statements and figures regarding operating and financial performance; statements regarding the prospects of nickel and cobalt in global automotive electrification; statements related to the repayment of operating debts of Ramu; and Conic related statements A statement of business and assets and their future strategies. Readers are cautioned not to rely too much on forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, most of which are beyond the company’s control. If one or more of the risks or uncertainties on which these forward-looking statements are based are realized, or the assumptions on which the forward-looking statements are based prove to be incorrect, the actual results, performance or achievements may differ from those expressed in the forward-looking statements Or the implied content is quite different.

The forward-looking statements contained in this press release have been made since the date of this press release. Unless otherwise provided by applicable securities laws, the company does not undertake any obligation to update or modify them to reflect new events or new circumstances. This warning statement clearly defines the forward-looking statements contained in this press release.

Neither TSX Venture Exchange nor its regulatory service provider (the term is defined in the policies of TSX Venture Exchange) assumes no responsibility for the adequacy or accuracy of this press release. No securities regulatory authority has approved or disagreed with the content of this press release.

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