Mr. Paul Farquharson reports

CONSTRUCTION CONTINUES TO ADVANCE AT ECOBALT'S IDAHO COBALT PROJECT

Construction continues to advance on time and on budget at eCobalt Solutions Inc.'s Idaho cobalt project (ICP), located near the town of Salmon, in the heart of the historic Idaho cobalt belt. The ICP remains the sole, near-term environmentally permitted primary cobalt deposit in the United States.

"Very good progress has been made at the ICP by our exceptional team of mining professionals," stated Paul Farquharson, president and chief executive officer of eCobalt. "We remain on target for commercial production to begin in 2020. In addition, discussions continue to progress with strong interest from multiple potential offtake partners and project financiers in numerous jurisdictions. We remain focused on the execution of our strategic plan to create long-term value for all shareholders by pursuing a clean cobalt concentrate favourable to the battery manufacturing market."

Progress development highlights include:

• Water treatment plant (WTP) equipment mobilized to site;
• Completed the WTP building foundation and slab; building steel erection and placement of large components to commence Aug. 18;
• Started lining the tailings waste storage facility (TWSF) and ponds for September completion;
• Completed potable water system connection to site administration building;
• Completed the power distribution system to the ponds and wells;
• Completed pumpback system earthworks, installation of the system pipelines now in progress;
• Opened a temporary camp for the construction work force near the project gate;
• Completed the fuel island containment pad for August installation of equipment for bulk diesel delivery and on-site distribution;
• To date 700 cubic yards of concrete have been poured at the mine and mill site, representing 25 per cent of the total concrete requirements of the project.

Metallurgical testwork update

Development of the concentrate roasting process utilizing a rotary kiln continues as planned. Bench-scale testing, conducted by Expert Processing Solutions, a Dundee Sustainable Technologies partner laboratory, was completed in July. Pilot-level testing to confirm the updated process flow sheet was also conducted in July at Hazen Research, Inc. This test confirmed stable process temperature and material flow conditions to volatilize the arsenic from the concentrate into the off-gas stream identified in the bench-scale tests. Additional pilot testing is continuing to confirm roasting off-gas management system design criteria to efficiently remove the arsenic from the kiln off gasses for vitrification.

As development advances, continuing testing will allow for additional improvements where appropriate. This continuing testwork will ensure that there is a high level of confidence in the flow sheet for the cobalt production facility and contribute to further derisking the project by establishing properly tested metallurgical and processing parameters.

About eCobalt Solutions Inc.

eCobalt is a well-established Toronto Stock Exchange-listed company committed to providing clean cobalt products essential for the rapidly growing rechargeable battery and renewable energy sectors, made safely, responsibly and transparently in the United States. The company's Idaho cobalt project, located in east-central Idaho in the historic Idaho cobalt belt, is the only environmentally permitted, primary cobalt project in the United States. It is 100 per cent owned by the company's wholly owned subsidiary, Formation Capital Corp. U.S.

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