TORONTO, Ontario: Cobalt 27 Capital Corp. (TSXV: KBLT) (OTCQX: CBLLF) (FRA: 270) (Cobalt 27 or the Company) is pleased to report it has filed a technical report for its recently acquired interest in the low-cost, long-life, Ramu nickel-cobalt operation (Ramu), prepared in accordance with National Instrument 43-101 - Standards for Disclosure for Mineral Projects (NI 43-101).
The Ramu Technical Report is in support of the Company's May 17, 2019 news release announcing the acquisition of Highlands Pacific Limited, whereby Cobalt 27 acquired an 8.56% joint venture interest in Ramu, an integrated producing nickel-cobalt operation, located in Madang Province, Papua New Guinea (PNG) (see Figure 1).

Anthony Milewski, Chairman and CEO of Cobalt 27, commented, We are excited to be releasing additional information on the Ramu asset so that investors can better understand the world-class nature of this operation and the nickel and cobalt exposure it provides to investors. Ramu is a first-quartile project on the global nickel cost-curve, has an extensive mine life, with potential to deliver 30+ years, and compelling exploration upside. The hydroxide product produced at Ramu is optimal for electric vehicles and battery storage markets, in fact already being sold to battery makers, enhancing shareholders' nickel exposure at a time when global inventory levels are approaching levels not seen since the end of 2012, when nickel was trading at approximately US$8 per pound, on average.

The technical report was independently prepared by Behre Dolbear Australia Pty Ltd. (BDA) after several months of working with majority owner and operator, Metallurgical Corporation of China Limited (MCC) to conduct required due diligence and site visits. MCC is a major Chinese State-owned construction and operating company ranked in the Fortune Global 500. Ramu is comprised of the Kurumbukari mine, which utilizes conventional open-pit mining methods and beneficiation plant designed to treat around 4.6 million tonnes of ore per annum, located in the foothills of the Bismarck Ranges; and the Basamuk processing plant (Basamuk Plant) located on the East coast of Papua New Guinea, approximately 55km southeast of Madang. Beneficiated ore is transported from the mine via a 135 km slurry pipeline to the Basamuk Plant which is designed to produce a mixed nickel-cobalt hydroxide product (MHP) containing around 32,600 tonnes nickel and 3,300 tonnes cobalt on an annual basis. MHP production for 2017 and 2018 has exceeded design capacity (106% and 108% respectively). BDA considers that commissioning and ramp-up was completed in 2015, and that the plant is capable of operating at design capacity going forward.

Economic Analysis

BDA has developed a life of mine (LOM) cash flow forecast model for Ramu using Proven and Probable Mineral Reserves based on the macroeconomic assumptions set out in detail in the technical report. Over the current LOM of 14 years from 2019, Ramu projects that 52.3Mt of ore will be processed to produce 428,000 tonnes of nickel and 47,000 tonnes of cobalt in MHP. The LOM capital costs are projected to total US$247 million, for sustaining capital. Projected operating costs over the LOM are expected to remain consistent with actual operating costs experienced to date. Based on Wood Mackenzie's independent analysis of global primary nickel producers, Ramu has positioned itself at or near the bottom quartile of global production based on a C1 cash cost basis since late 2017. This supports that Ramu has been profitable on a C1 basis at all points of the nickel commodity cycle over the last few years. Projections for revenue are based on the Mineral Resource and Reserve estimates and continuation of current production levels.
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(Posted on 17 August 2019, 1675873535 34O225O194O102)