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Conic Releases Ramu 2020 Production Update

V.NKL | January 5, 2021

Conic Metals Corp. (“ Conic ” or the “ Company ”) (TSXV: NKL ), one of Canada’s only pure-play nickel and cobalt producers, is pleased to provide an update on the production results from the Ramu Nickel-Cobalt mine in Papua New Guinea (“ Ramu ”). Conic owns an 8.56% joint-venture interest in Ramu which is operated by the Metallurgical Corporation of China (“ MCC ”).

For the 4 th year in a row, Ramu exceeded its nameplate capacity, producing a total of 33,659 tonnes of contained nickel or 103% of nameplate capacity and 2,941 tonnes of contained cobalt in its mixed hydroxide product (“ MHP ”). MHP is one of the key raw materials to produce nickel sulphate which is used to produce lithium-ion batteries for the electric vehicle and energy storage sectors.

In the second half of 2020 Ramu produced 17,421 Mt of contained nickel and 1,566 Mt of contained cobalt, compared to 16,238 Mt of contained nickel and 1,375 Mt of contained cobalt in the first half of 2020. In addition, the second half of 2020 saw much stronger nickel prices with the LME price averaging $6.84 per pound in the second half of 2020 compared to $5.66 per pound in the first half of 2020, an increase of more than 20%. Current LME nickel prices are above $7.50 per pound.

“I would like to congratulate MCC on another stellar year of production at Ramu in a year which saw 374 different mining projects around the world impacted by the Covid-19 pandemic,” stated Anthony Milewski, Chairman of Conic. Mr. Milewski continued, “MCC has once again shown that it’s one of the top mining operators in the world and Conic is fortunate to have MCC as a partner now for more than 13 years.”

About Conic

Conic Metals Corp. is a base metals company offering direct exposure to nickel and cobalt, both being critical elements of electric vehicles and energy storage systems. Conic holds an 8.56% joint-venture interest in the producing, long-life and world-class Ramu Nickel-Cobalt Operation located in Papua New Guinea which provides Conic with significant attributable nickel and cobalt production. In addition, Conic manages a portfolio of 13 nickel and cobalt royalties on development and exploration projects in Canada, Australia and Papua New Guinea.

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain information which constitutes ‘forward-looking statements’ and ‘forward-looking information’ within the meaning of applicable Canadian securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to: statements and figures with respect to the operational and financial results; statements with respect to the prospects of nickel and cobalt in the global electrification of vehicles; statements related to the repayment of the Company Ramu operating debt; statements related to the impact of COVID-19 on the Company; and statements with respect to the business and assets of Conic and its strategy going forward. 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 Company’s control. Should one or more of the risks or uncertainties underlying these forward-looking statements materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements.

The forward-looking statements contained herein are made as of the date of this release and, other than as required by applicable securities laws, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. The forward-looking statements contained in this 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 either approved or disapproved of the contents of this news release.