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Cobalt 27 Provides Clarification on today’s Article

Toronto, Ontario – January 9, 2019 - Cobalt 27 Capital Corp. (“Cobalt 27” or the “Company”)(TSXV: KBLT)(OTCQX: CBLLF)(FRA: 27O) at the request of IIROC, wishes to clarify and retract certain disclosure contained in an article dated January 9, 2019 entitled “New Strategic Acquisition Could Significantly Increase Cobalt 27's Attributable Production of Cobalt to over 600,000 Pounds” (the “Article”). The Article was authored by a market commentator and purported to discuss the potential of the Company’s acquisition of Highlands Pacific Limited (“Highlands”), which holds an 8.56% interest in the Ramu nickel-cobalt mine (“Ramu”) located near Madang on the north coast of Papua New Guinea.

The Article makes reference to “mineral reserves totaling approximately 1 billion pounds of nickel and 100 million pounds of cobalt.” The Company wishes to clarify that while the mineral resources and ore reserves for Ramu are presented in compliance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Reserves and Ore Reserves established by the Australasian Joint Ore Reserves Committee (the "JORC Code"), an acceptable foreign code, we have been asked to provide additional information on the mineral resource and ore reserves estimates for Ramu, as set out below under the heading “Ramu Mineral Resource and Ore Estimates”.

The Article also included a quote from a research analyst report with respect to cash flow yield and the relative price of Cobalt 27’s securities, which statements Cobalt 27 retracts. In addition, the Company clarifies that the statements with respect to cost quoted from another research analyst report (''provides greater nickel and cobalt production exposure at a lower cost (~$83-96M vs. ~$145M for the original stream)'') were intended to refer to cost of the acquisition of Highlands pursuant to the publicly announced scheme of arrangement as compared to the previously terminated metals purchase agreement with Highlands.

Ramu Mineral Resource and Ore Reserve Estimates

The majority owner and operator of Ramu is MCC Ramu Nico Ltd., a wholly-owned subsidiary of Metallurgical Corporation of China Limited (“MCC”), which is listed on the Hong Kong Stock Exchange (Stock Code “1618”) and on the Shanghai Stock Exchange, and has a market capitalization of approximately US$9 billion. The scientific and technical information in this news release, as well as additional material scientific and technical information with respect to the Ramu project, has been prepared by MCC in its capacity as operator of Ramu and disclosed by MCC and Highlands and is available on MCC’s HKEX profile at as well as on Highlands’ website at

All estimates of mineral reserves and mineral resources in respect of Ramu in this news release are presented in compliance with the JORC Code.  Disclosures of a scientific or technical nature in this news release have been reviewed on behalf of Cobalt 27 by Robert Osborne, a “Qualified Person” as defined by 43-101.

The following are the ore reserves and mineral resources (inclusive) for Ramu as at June 15, 2018, reported under the JORC Code. The report on reserves and resources was prepared for and are the responsibility of Ramu NiCo Management (MCC) Limited, the operator and manager of Ramu. For reporting in a NI 43-101 format, the inferred resources are not totaled with the measured and indicated mineral resources. The Ramu technical report has been reviewed for scope and content of JORC and NI 43-101 reporting by an independent qualified person on behalf the Company.

In the following table note:

  1. Ni and Co grades shown to 1 decimal only. Totals are rounded.
  2. Dry ore tonnes reflect -2mm economic portion of the recoverable resource.
  3. Ore reserve based on US$12,000/t nickel and US$48,501/t cobalt.
  4. 0.5% Nickel cut-off grade for the mineral resource and the ore reserve.
 Ore Reserves         Nickel Cobalt
      (Mt)   (%) (%)
Proven     24   0.9 0.1
Probable     33   0.9 0.1
Total Reserves   56   0.9 0.1
Mineral Resources            
Measured     34   0.9 0.1
Indicated     42   0.9 0.1
Measured and Indicated     76   0.9 0.1
Inferred     60   1.0 0.1

Forward-Looking Information

This news release contains certain information which constitutes ‘forward-looking statements’ and ‘forward-looking information’ within the meaning of applicable Canadian securities laws. Forward-looking statements in this news release include, without limitation: statements pertaining to estimates of mineral resources and mineral reserves at Ramu; statements pertaining to future production and mining costs at Ramu; and statements pertaining to future prices of cobalt, nickel and other commodities. Forward-looking statements involve known and unknown risks and uncertainties, most of which are beyond the Company's control. For more details on these and other risk factors see the Company’s most recent Annual Information Form on file with Canadian securities regulatory authorities on SEDAR at under the heading “Risk Factors”. 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. Accordingly, undue reliance should not be placed on these forward-looking statements.

This news release also contains references to estimates of mineral resources and mineral reserves. The estimation of mineral resources is inherently uncertain and involves subjective judgments about many relevant factors. Estimates of mineral reserves provide more certainty but still involve similar subjective judgments. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company’s projects, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral resource or mineral reserve estimates may have to be re-estimated based on: (i) fluctuations in mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences; and (vii) changes in law or regulation.

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 it 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.