Dr. Andreas Rompel reports

COBALT POWER GROUP RELEASES SAMPLE RESULTS ON THE SMITH COBALT PROPERTY

Cobalt Power Group Inc. has released positive results from the follow-up sampling program conducted on its Smith cobalt property near Cobalt, Ont.

Six samples were taken from a muck pile (loose ore that has been fragmented as a result of drifting along the veins) originating from historic underground workings. The muck pile covers an area approximately 50 by 20 metres, with a thickness of three to four metres and is estimated to contain 5,000 to 10,000 tonnes of crushed rock. The samples were gathered using a semi-regular grid pattern by digging into the pile to a depth of roughly 30 centimetres and are considered to be representative of the bulk of the material within the pile. As well, two rock samples were collected from a vein uncovered while clearing vegetation around the historic Smith cobalt shaft. All samples were analyzed at SGS Canada Inc. (Burnaby, B.C.) using four-acid digestion with an atomic emission spectroscopy finish.

Results are summarized in the table (including four muck pile samples previously reported, see news release dated Nov. 17, 2016).

             SMITH COBALT PROPERTY SAMPLE RESULTS -- COBALT, ONTARIO    
          
Sample       Sample type            Co              Ag            Cu            Ni
                                    (%)           (g/t)           (%)           (%)

289951              Muck          0.23            4.91          0.11          0.11
289952              Muck          0.68            6.98          0.24          0.28
289953              Muck          0.56            8.29          0.17          0.24
289954              Muck          0.09            1.69          0.12          0.04
289955              Muck          0.68            5.77          0.22          0.29
289956              Muck          0.50            4.39          0.19          0.17
341678*             Muck          0.62            9.41          0.20          0.31
341679*             Muck          0.33            3.83          0.18          0.12
341680*             Muck          0.31            5.52          0.11          0.09
341681*             Muck          0.99            4.70          0.01          0.34
Muck average           -          0.50            5.55          0.16          0.20
289958              Rock          7.85          118.00          0.06          5.46
289959              Rock          3.77            60.2          0.12          2.18
Rock average           -          5.81            89.1          0.09          3.82

* Previously reported sample (see news release dated Nov. 17, 2016).

Dr. Andreas Rompel, president and chief executive officer, commented: "We are pleased by these results which show high cobalt content in our recent sampling. The approximate 0.5-per-cent-cobalt average detected in the muck pile confirms the concentration found during our 2016 phase one sampling program. The extraordinarily high-grade results from the vein samples are also very encouraging. This information, combined with increasing global cobalt prices, compels us to pursue our exploration targets for 2017 with even greater vigour."

Cobalt Power Group has completed the first round of airborne magnetics and awaits the final report. As well, line cutting began on the Smith cobalt property in December (see news release dated Dec. 16, 2016) in preparation for an induced polarization survey to be undertaken in first quarter 2017.

About the Smith cobalt project

The Smith cobalt project is underlain by a sequence of Archaean volcanics which are uncomfortably overlain by Huronian sediments. These formations have been intruded by the Proterozoic-age Nipissing diabase sill. Faulting, on both a regional and local scale, has been found by surface mapping and in drill cores. Polymetallic veining, and especially pinkish-white carbonate veins, has also been reported. Thus, all the necessary geological components of accepted mineralization models for cobalt-silver have been identified on the properties.

Chris M. Healey, PGeo, a director of Cobalt Power Group, is the qualified person responsible for the technical content of this release and consents to its release.

We seek Safe Harbor.