Mr. Trent Mell reports

FIRST COBALT CONCLUDES LONG TERM OFFTAKE CONTRACT FOR 100% OF PRODUCTION

First Cobalt Corp. has signed a flexible, long-term, offtake agreement with Stratton Metal Resources Ltd. for the sale of future cobalt sulphate production from the First Cobalt refinery located in Ontario, Canada.

Highlights

• First Cobalt will have the option to sell up to 100 per cent of its annual cobalt sulphate production to Stratton Metals once its refinery is in production. Quantities will be determined by First Cobalt in advance of each calendar year and are subject to a minimum annual quantity.
• Provides flexibility for First Cobalt to enter into offtake contracts with OEMs (original equipment manufacturers) and their suppliers, reducing amounts made available to Stratton Metals.
• Contract term of five years matches the term of First Cobalt's feed supply agreements and anticipated term of its credit facility.
• Sale price will be based on prevailing market price at the time of shipment.

This announcement is consistent with the company's strategy of bringing battery-grade cobalt to the North American EV market. The ability to elect the annual quantity sold to Stratton Metals will provide the company with time and flexibility to advance offtake and battery recycling discussions with potential OEM partners.

"Stratton Metals are among the most knowledgeable cobalt traders in the world, with a network of relationships in every major market," said Trent Mell, president and chief executive officer. "This sales arrangement is a key milestone for the company as firming up commercial arrangements supports the financing process for the refinery expansion. Refinery commissioning remains on schedule for October, 2022. We look forward to working with Stratton to supply the world's most sustainable cobalt to the electric vehicle market."

The five-year offtake contract matches the expected term of a project debt facility currently being negotiated as well as long-term arrangements for refinery feedstock. In January, 2021, First Cobalt concluded five-year cobalt hydroxide feed purchase arrangements with Glencore AG and IXM SA. The offtake arrangement with Stratton represents a long-term partnership arrangement that will assist First Cobalt as it enters the cobalt sulphate market and qualifies its product with various cathode and battery cell manufacturers. Stratton Metals will be paid a fee relating to the cobalt sulphate sales made under this agreement.

First Cobalt intends to market a premium brand of cobalt that is ethically sourced and has one of the lowest (and potentially the lowest) greenhouse gas emissions in the industry. First Cobalt will continue to partner with leaders in the cobalt industry to produce a premium, sustainable source of cobalt for the rapidly growing EV market.

Refinery overview

The First Cobalt refinery is a hydrometallurgical cobalt refinery located north of Toronto, in the community of Temiskaming Shores. The facility operated from 1996 to 2015, producing cobalt, nickel and silver. The company is expanding the facility and modifying the flow sheet to refine third party cobalt hydroxide intermediate product into a high-purity, battery-grade cobalt sulphate suitable for lithium-ion batteries. Today, approximately 80 per cent of cobalt sulphate is made in China and there is no production in North America. In December, 2020, the government of Canada and the government of Ontario announced a joint $10-million investment in the First Cobalt refinery to help accelerate commissioning and expansion.

About First Cobalt Corp.

First Cobalt's mission is to be the most sustainable producer of battery materials. The company owns North America's only permitted cobalt refinery, a critical asset in the development and manufacturing of batteries for electric vehicles. First Cobalt owns the Iron Creek cobalt-copper project in Idaho, United States, as well as several significant cobalt and silver properties in the Canadian cobalt camp.

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