TSX.V: CPO, PINK SHEETS: CBBWF www.cobaltpowergroup.com
MARCH 2018
Forward-Looking Statements Certain information set forth herein may contain forward‐looking statements that involve substantial known and unknown risks and uncertainties. These forward‐looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Cobalt Power Group Inc. (“Cobalt Power” or the “Company”), including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward‐looking statements. They should not be relied upon and Cobalt Power does not treat them as current mineral resources. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. This presentation is not a solicitation by Cobalt Power as an offer to sell its securities. Technical Content: Chris M. Healey, P.Geo, V.P. Exploration, Director and Geological Consultant for Cobalt Power, is a Qualified Person as defined by National Instrument 43-101, and has reviewed and approved the technical content of this presentation.
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Introduction Cobalt Power Group is a publicly traded Canadian cobalt exploration and development company listed on the TSX Venture Exchange (CPO.V) and the US Pink Sheets (CBBWF). Between fall 2016 and spring 2017, the company amassed the 1,170 ha (2,890 acre) Smith Cobalt Project located in the Cobalt Camp region of Northern Ontario, Canada. In November 2017, the company completed the acquisition of Canadian Cobalt Project Inc. The purchase included the 7,567 ha (18,700 acre) Canadian Cobalt project located in the Silver Centre region of the Cobalt Camp, as well as several exploration license applications in historic cobalt mining areas of southern Sweden.
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Team*, Structure, & Market Chris Hopkins
Director
Brian Murray
Director
Jeffrey Poloni
Director
Isac Bursetein
Director
Dr. Andreas Rompel
Director
Christopher Healey
VP Exploration, Director
Glenda Kelly
VP of Communications, Corporate Secretary
*Individual biographies can be found at www.cobaltpowergroup.com
Share Structure: as of March 1, 2018
Market Information: Jan 18, 2018
Total number of Shares Issued & Outstanding
79,610,387
Last Trade (CDN $)
Warrants Outstanding
29,785,627
Market Cap (CDN $)
Options Outstanding
5,460,000
Fully Diluted
114,856,014
Co Price (US $ per lb.)
0.27 32.0 Million 34.93
Why Cobalt? 60% of global supply comes from the DRC, a geopolitically sensitive jurisdiction
A supply shortfall, which began in 2016, continues and has resulted in a sustained price increase
Key component in Li-ion batteries which are driving the renewable energy sector
Major global applications: 49% Batteries 18% Super Alloys
France, the UK, & China plan to ban the sale of fossil fuel based vehicles by 2040
“In many ways, the cobalt industry has the most fragile supply structure of all battery raw materials.� Andrew Miller, Benchmark Mineral Intelligence
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Demand & 1 Year Price Chart “Cobalt looks set to be the main constraint on battery market growth. Even without a rise in electric vehicle demand we foresee a tight market…” ** ** BMO Capital Markets, Dec 2017
“Cobalt is considered a critical metal to the United States, essential to its economic health and national defense.” * * Palisade Research, Oct 2016
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Cobalt Performance & Outlook One Year Metal Performance* “Even without EV demand, cobalt is a tight market. Add the expected EV demand into the mix, where we model 10% penetration in 2025, and we have a major problem.” * Commodity Comparison- Shortage Potential*
“Cobalt has been the best performing metal we cover over the past 12 months.” * * BMO Capital Markets – Dec, 2017
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Location of Assets The Smith Cobalt and Canadian Cobalt Projects are located in Northern Ontario, Canada, approximately 420 km northwest of Ottawa.
APPROXIMATE LOCATION
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The Cobalt Camp Ontario Historically, the Cobalt area was mined for silver with cobalt as a by-product. Between 1903 and 1966, the area produced over 750,000,000 oz. of silver and over 50,000,000 lb. of cobalt. Both the Smith Cobalt and Canadian Cobalt projects lie in the heart of the Cobalt Camp. The Canadian Cobalt project is located in the Silver Centre region of the Cobalt Camp and is within close proximity to the recently announced First Cobalt/Cobalt One lands.
Cobalt, Ontario
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Cobalt Camp Assets Smith Cobalt Smith Cobalt Project Project • 1,169.7 ha (2,890 acres)
Canadian Canadian Cobalt Cobalt Project Project • 7,567.1 ha (18,700 acres) TOTAL: 8,736.8 ha (21,589.1 acres) 10
Nipissing Diabase
x x x x x x x x x x x x x x x
Silver-cobalt mineralization typically occurs in steeply-dipping carbonate veins.
greywacke . v . > . . < Ag Co
quartzite . . . . .
conglomerate o o o
felsic cherty tuff < > v Keewa=n
Vein
greywacke . v . > . . < conglomerate o o o
Archaean
The Archaean and Proterozoic rocks have been intruded by the Nipissing diabase sill.
U Huronian
Proterozoic
Geological Setting
greywacke . v . > . . < pyroclas=c tuff breccia mafic volcanics, pillows U = Unconformity
U
The Keewatin is unconformably overlain by relatively flat-lying Proterozoic sediments. The sediments consist of conglomerates, greywackes and quartzites. Archaean Keewatin age consist mainly of mafic flows and interflow sediments. 11
The Smith Cobalt Project
The Deer Horn Mine with the Smith Cobalt Mine in the background- Historic picture courtesy of the Mining Museum of Cobalt, Ont.
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Project Details The Smith Cobalt Project consists of 20 patented claims and 10 staked mineral claims covering 1,169.7 ha (2,890 acres) located in the Cobalt Camp, Ontario. • High grade cobalt-silver properties, excellent metallurgy, substantial upside • Ontario Canada, a politically stable, mining-friendly jurisdiction with an excellent tax regime Ownership
Historical Workings
Access
Smith Cobalt & Extensions
100%*
-Mine shaft/past producer -Identified veins
Hwy. 11B
-Power, water, roads
Proteus
100%
-Identified veins
Hwy. 567
-Power, water, roads
Kirk Lake & Extension
100%
-Mine shaft -Identified veins
Hwy. 567
-Power, water, roads
Bende & Kingston
100%
-Mine shaft -Identified veins
Hwy. 11B
-Power, water, roads
Coleman Properties
100%
-Mine shaft/past producer -Identified veins
Hwy. 11B
-Power, water, roads
Concession
* 2% NSR with the option to purchase ½ (1%) for $1,000,000 CDN
Infrastructure
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Concessions & Vein Swarms Smith Cobalt Workings New Mineralized Zones Zone
INDEX Interpreted structures Known vein occurrences Historical mine shaft Smith Cobalt Project
Bende ShaX 14
Historic Work Immediately to the west of the Smith Cobalt property is the historic Deer Horn mine (also known as the Cross Lake Oâ&#x20AC;&#x2122;Brien mine). Up to 1966, the mine is reported to have produced approximately 11 million oz. of silver and 100,000 lb. of cobalt. Several of these Ag-Co producing veins extend onto the property and were encountered in the underground workings with associated cobalt and nickel values. There are several historic mine shafts on the Smith Cobalt, Kirk Lake and Bende properties.
Smith Cobalt Muck Pile
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Exploration & Development 1903-1950 • •
Past & Present
•
Cobalt area first explored for silver Underground workings developed Smith Cobalt mines produced 10,027 lb. of cobalt in 1935
1984-1986 Smith Cobalt: 1984 Phaeton Exploration drilled 3 diamond drill holes, totalling 689 m (2,261 ft.) Proteus: Drilling occurred during 1985-1986
1959 Smith Cobalt: Dolmac Mines Ltd. drilled 12 surface diamond drill holes, totalling 1,831 m (6,010 ft.)
2000-2016 Proteus: Geophysics conducted in 2011 Kirk Lake: Sampling by the Ont. Dept. of Mines in 2005 found silver values ranging 103 to 6,800 ppm Smith Cobalt: Sampling program and Air Mag survey 2016
1966 •
Up to 1966, the Deer Horn mine, directly adjacent to the Smith Cobalt property, produced 11 million oz. of silver and 100,000 lb. of cobalt
2017 Smith Cobalt: IP Survey completed. Phase 1 drilling- 1,896m (6,220 ft.) 9-holes, completed. New mineralized zone discovered, sampling completed. Phase 2 drilling-2,300m (7,545 ft.)16-holes, completed. Results 16 pending.
Anticipated Project Timeline 2016
Milestone
Q3
Q4
2017
2018
Q1
Q2
Q3
Q4
P1
P1
P2
P2
Q1
Q2
Q3
P3
P3
Q4
ACQUISITIONS Smith Cobalt Project Canadian Cobalt Project
EXPLORATION- Smith Cobalt Mapping / Mag / LIDAR Survey Line Cutting/IP & Mine Shaft Study Vein / Muck Sampling Drill Program Mapping/Trenching/Surface Geophysics Environmental Baseline Collection South Lorrain â&#x20AC;&#x201C; Airborne Geophysics Mine Closure Plan Completed
Planned or ongoing
P = Phase of drilling 17
Smith Cobalt Drill Program Phase 1: • • •
9 – Holes, 1,896 m (6,220 ft.) High-grade cobalt and silver intersected Battery-related component metals (Cu, Ni, Zn) intersected • Confirmed and characterized vein swarms mapped from historical mine workings • Confirmed the same stratigraphic and structural setting as the Deer Horn Mine, owned and formerly operated by Agnico Eagle Assay Highlights: • • • • • • •
1.71% Co and 42.5 g/t Ag over 0.10 m in hole 17-03 1.85 g/t Ag over 56.0 m in hole 17-03 1.39 g/t Ag over 72.5 m in hole 17-04 0.22% Cu over 14.0 m in hole 17-04 0.13% Zn over 33.0 m in hole 17-04 0.11% Ni over 30.66 m in hole 17-06 0.17% Pb over 17.49 m in hole 17-04
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The Canadian Cobalt Project
Cobalt Camp
Ontario
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Concessions- Silver Centre Canadian Canadian Canadian Canadian Cobalt Cobalt Cobalt Project Cobalt Project
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Project Details The Canadian Cobalt Project consists of 43 unpatented mining claims and 1 mining lease on patented land covering approximately 7,567 ha (18,700 acres) located in the Silver Center of the Cobalt Camp, Ontario. • High grade cobalt-silver properties, excellent metallurgy, substantial upside • Close proximity to several historic mines (including the former producing Keeley and Frontier), as well as the recently announced First Cobalt/Cobalt One claims • Ontario Canada, a politically stable, mining-friendly jurisdiction with an excellent tax regime Ownership
Historical Workings
Access
Canadian Cobalt Claims
100%*
-samples collected from quartz-carbonate veins
Hwy. 567
- Road, water
Silver Eagle Mining Lease
100%*
-past producing mine
Hwy. 567
- Road, water
Concession
* 1.5% NSR with the option to purchase ¾ (1.125%) for $1,000,000 CDN
Infrastructure
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Historic Production The Canadian Cobalt Project is within close proximity to several historic mines, (including the former producing Keeley and Frontier Mines in the South Lorrain Township, Ontario). These mines produced more than 19 million oz. of silver and 3 million lbs. of cobalt over their 60 years of mine life. Located on the Silver Eagle mining lease, the Silver Eagle Mine, which operated around 1918, produced 8,000 oz. of silver from a 6-meter section of mine workings that crossed the property from the adjacent Wettlaufer Mine (cobalt was not recovered, as was typical for that era). This historic production proved to be one of the most prolific within the Silver Center region of the Cobalt Camp.
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Hochschild Mining Alliance In August 2017, Hochschild Mining Holdings Ltd. (LSE: HOC) and Cobalt Power Group established a strategic alliance. Hochschild, with a market capitalization of $2.1 billion CDN, is a well-established senior mining producer with over 60 years operating experience in the Americas. It currently operates 4 underground mines, focused on the production of precious metals, of which 3 are located in Peru and 1 in Argentina.
HOC Rights: • Right to option and JV one of CPO’s properties to be selected by Hochschild • Right to appoint one director to the Board of CPO • Annual right to top up its percentage interest in CPO
Strategic Benefits: • HOC has extensive experience in the mining & treatment of steeply dipping, narrow epithermal veins, like those found in the Cobalt Camp • Access to capital on an ongoing basis required to further develop CPO’s assets • Alliance with mid-tier producer increases the credibility of CPO’s assets and management team
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Investment Highlights • Cobalt-focused poly-metallic play • One of the most advanced-stage cobalt exploration companies currently drilling in the Cobalt Camp • Large land position - approximately 8,736 ha (21,600 acres) of strategically located claims in the prolific Cobalt Camp region of Northern Ontario • Presence of historical workings on properties, including 4 mine shafts on the Smith Cobalt project and 1 on the Canadian Cobalt • Major infrastructure already in place (Smith Cobalt) • Close proximity to several historic mines, including the former producing Deer Horn, Keeley and Frontier • Prolific geological setting - properties cover projected strike extent along a trend of known mineralized veins • Strategic alliance with Hochschild Mining (LSE: HOC) • Experienced management team and board 24
Cobalt Peer Group Comparison Company Cobalt Power Group CPO – TSX.V First Cobalt FCC.V – TSX.V Cruz Cobalt CUZ – TSX.V Quantum Cobalt QBOT – CSE LiCo Energy LIC – TSX.V
Ontario Core Asset Size (ha)
Shares Issued (Million)
Market Cap (CDN $)
Last Trade (CDN $)
8,736
118.5
32.0 Million
0.27
>10,000
194.2
252.5 Million
1.30
599.0 364.0
72.9
25.5 Million
0.35
≈ 2,200
27.5
30.2 Million
1.10
554.6
132.4
18.5 Million
0.14
* As of Jan 18, 2018
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Cobalt Camp District Cobalt Camp, Ontario • Companies and projects in the Cobalt & Silver Center Camps • Cobalt Power Group displayed in blue • First Cobalt displayed in pink
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CPO Exploration Budget- 2018 Category
Description
Budget
Geophysics
Airborne, ground, line cutting, interpretation, bore holes
$ 410,000
Geology
Interpretation, mapping, sampling
$ 150,000
Geochemistry
Soil geochem, assay lab issues
$ 105,000
Drilling
Phase 3
$ 1,200,000
Environmental
Base line studies
$ 5,000
First Nations
On-going consultations
$ 5,000
Land
Claim conversion
$ 5,000
Logistics
Core shack, road work, travel & lodging, supplies
$ 283,000
Technical Report
NI 43-101
$ 25,000
Contingency
@ 10%
$218,800
TOTAL
$ 2,406,800 CDN 27
Gallery
Smith Cobalt: Cobalt mineralization
Smith Cobalt: Drill program
Smith Cobalt: Historical Shaft Entry
Smith Cobalt East: Mineralized Zone
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Contact Information TORONTO #520- 65 Queen St. West Toronto, ON, Canada M5H 2M5 info@cobaltpowergroup.com
Cobalt, Ontario
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