Mr. Anthony Milewski reports

COBALT 27 ANNOUNCES NORMAL COURSE ISSUER BID, US$6.8 MILLION SETTLEMENT OF INSURANCE CLAIM AND CORPORATE UPDATE

Cobalt 27 Capital Corp. has received settlement of its insurance claim related to the loss through theft of 76 tonnes of the company's premium-grade cobalt from Vollers Holland BV's Rotterdam warehousing facility. The total amount of the settlement received by the company is more than $6.8-million (U.S.) based on the highest price of premium-grade cobalt during the month of loss, which was $40.85 (U.S.) per pound, as quoted by Metal Bulletin on July 4, 2018.

The 76 tonnes represented approximately 2.6 per cent of Cobalt 27's total physical cobalt holdings at the time, which today stands at 2,905.7 tonnes. All of Cobalt 27's physical cobalt, which is stored in London Metal Exchange-certified-and-bonded warehouses in the United States and Europe, remains fully insured.

Normal course issuer bid

Cobalt 27 intends to use the proceeds from the insurance settlement as well as any excess liquidity to repurchase its common shares pursuant to a normal course issuer bid as, in the opinion of management and the board of directors, its common shares have recently traded in a price range that represents a substantial discount to the company's net asset value and does not reflect the underlying value of the company. "Using the insurance proceeds to buy back shares at their current trading price would be highly accretive to our net asset value per share and represents the most attractive use of proceeds of any excess liquidity available to the company," stated Anthony Milewski, the company's chairman and chief executive officer.

Cobalt 27 has submitted a notice of intention to undertake a normal course issuer bid to the TSX Venture Exchange in connection with the purchase by Cobalt 27 of up to 8.4 million of its common shares, representing 9.9 per cent of the 84,815,780 common shares comprising Cobalt 27's total issued and outstanding common shares as of Nov. 5, 2018. All common shares purchased by Cobalt 27 will be purchased on the open market through the facilities of the TSX-V in accordance with the rules, regulations and policies of the TSX-V and will be cancelled.

The normal course issuer bid remains subject to the approval of the TSX-V and will begin on the date that is two trading days after the TSX-V's approval and will be open for a maximum period of 12 months. A further news release with additional details of the normal course issuer bid will be issued upon approval of the bid by the TSX-V.

Ramu cobalt-nickel stream

Cobalt 27 advises that the company continues to work toward closing the previously announced acquisition of a cobalt-nickel stream on the producing Ramu nickel-cobalt mine from Highlands Pacific Ltd. (see news release dated May 22, 2018) on the same terms as previously announced. When initially announced, Cobalt 27 stated that it was also in advanced negotiations with local Papua New Guinea stakeholders (collectively MRDC), which also own an equity interest in the Ramu mine, in respect of an $87-million (U.S.) stream agreement on the same terms for a proportionate metal stream based on their aggregate attributable interest in the Ramu mine. Based on the company's continuing discussions with Highlands Pacific, majority owner and operator Metallurgical Corp. of China Ltd., and MRDC, it is now contemplated that completion of the acquisition of the cobalt-nickel stream on the Ramu mine from Highlands Pacific will occur at or around the same time as the proposed stream transaction with MRDC.

Cobalt 27 continues to focus on building the company's portfolio of battery metal streams, royalties and direct interests and believes the underlying supply and demand fundamentals for battery metals remains strong.

About Cobalt 27 Capital Corp.

Cobalt 27 Capital is a leading electric metal investment vehicle offering exposure to metals integral to key technologies of the electric vehicle and battery energy storage markets. The company has acquired a cobalt stream on Vale's world-class Voisey's Bay mine beginning in 2021, including the announced underground expansion; is acquiring the world's first producing cobalt nickel stream on the low-cost, long-life Ramu nickel-cobalt mine; and holds one of the world's largest stockpiles of physical cobalt. The company also manages a portfolio of nine royalties and intends to continue to invest in a cobalt-focused portfolio of streams, royalties and direct interests in mineral properties containing cobalt.

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