Mr. Trent Mell reports

FIRST COBALT INITIATES STUDY ON REFINERY RESTART REQUIREMENTS

First Cobalt Corp. has initiated a study of the First Cobalt refinery, located in the Canadian Cobalt camp, intended to help the company estimate the capital requirements for a future restart and expansion of the refinery.

Highlights:

• First Cobalt is 100-per-cent owner of the refinery, which is the only fully permitted cobalt refinery in North America capable of producing battery materials.
• The study will estimate the capital required to restart the refinery in its current configuration and under an expansion scenario within the existing footprint.
• The study will provide operating cost estimates for both the current configuration and an expansion scenario.
• The refinery could treat third party material for a North American supply of cobalt sulphate to the electric vehicle market.

Trent Mell, president and chief executive officer, commented: "The First Cobalt refinery is a unique and strategic asset that is fully permitted to process North American feedstock. As we move forward with proposed acquisition of U.S. Cobalt and ongoing studies of early cash flow opportunities in the Cobalt camp from historic muck pile material, this refinery study will drive us closer to our goal of being a vertically integrated North American cobalt company."

First Cobalt has initiated a study of the First Cobalt refinery to estimate the capital requirements to restart the facility in its current configuration and under an expansion scenario. The expansion scenario study will estimate the additional capital requirements and increase in throughput of an expanded facility within the current building footprint. Operating cost estimates will be provided for both scenarios.

The First Cobalt refinery is a hydrometallurgical cobalt-silver-nickel refinery located approximately five kilometres east of Cobalt, Ont. The facility was commissioned in 1996 with a nominal throughput of 12 tonnes per day. A second autoclave was later added to the pressure oxidation circuit to double the throughput to 24 tonnes per day but the second autoclave was never fully commissioned. The current footprint includes an empty feed warehouse that once housed a mill. The facility is located on a 40-acre property that can be expanded to 120 acres with two settling ponds and an autoclave pond.

The flowsheet and timeline for a potential restart of the refinery have become a focus following the recently announced friendly merger with U.S. Cobalt Inc. (see press release dated March 14, 2018). U.S. Cobalt's primary asset is the Iron Creek cobalt project in Idaho, which has a historic mineral resource estimate (non-compliant with National Instrument 43-101) of 1.3 million tons grading 0.59 per cent cobalt and 0.3 per cent copper. A 10,700-metre drill program was recently completed at Iron Creek to confirm this historic estimate and a current mineral resource estimate is expected during 2018. U.S. Cobalt's securityholders will vote on the proposed transaction on May 17, 2018.

A 2012 report prepared for a previous owner by Hatch estimated the replacement value of the First Cobalt refinery at $78-million (U.S.), excluding the capital invested in power lines and earthworks related to the tailings facility and roads.

The facility is fully permitted for processing feed containing elevated concentrations of arsenic, such as those from the Cobalt camp, the Idaho cobalt belt and elsewhere in North America. The company believes that permitting a similar facility in North America today could take a significant investment of time.

The ability of the refinery to process materials containing elevated arsenic and produce cobalt battery materials could derisk not only First Cobalt projects, but also other North American cobalt projects.

The refinery contains three circuits: a pressure oxidation circuit, a solvent extraction circuit and a Merrill Crowe circuit. Feed containing arsenic is first treated in the pressure oxidation circuit where arsenic is combined with iron to create a stable iron arsenate called scorodite. The refinery permits allow scorodite to be disposed of in its autoclave pond.

The company has engaged Primero Group, an Australian engineering firm with an office in Montreal, Que., to conduct the desktop study review. Primero's expertise spans several disciplines within the resources industry and includes infrastructure development and mineral processing, as well as hydrocarbon storage and gas compression facilities. Results of the refinery study are expected in the second quarter.

Qualified and competent person statement

Peter Campbell, PEng, is the qualified person as defined by National Instrument 43-101 who has reviewed and approved the contents of this news release. Mr. Campbell is also a competent person (as defined in the JORC (Joint Ore Reserves Committee) code, 2012 edition) who is a practising member of the Professional Engineers of Ontario (being a recognized professional organization for the purposes of the Australian Securities Exchange listing rules). Mr. Campbell is employed on a full-time basis as vice-president, business development, for First Cobalt. He has sufficient experience that is relevant to the activity being undertaken to qualify as a competent person as defined in the JORC code.

About First Cobalt Corp.

First Cobalt aims to create the largest pure-play cobalt exploration and development company in the world. The company controls over 10,000 hectares of prospective land covering over 50 historic mines as well as mineral processing facilities in the Cobalt camp in Ontario, Canada. The First Cobalt refinery is the only permitted facility in North America capable of producing battery materials.

First Cobalt seeks to build shareholder value through new discovery, mineral processing and growth opportunities, with a focus on North America.

We seek Safe Harbor.