Cobalt 27 Announces Normal Course Issuer Bid, US$6.8 Million Settlement of Insurance Claim and Corporate Update

TORONTO, November 13, 2018 /PRNewswire/ --

TSX Venture:  KBLT
OTCQX:  CBLLF
FRA:  27O   

Cobalt 27 Capital Corp. ("Cobalt 27" or the "Company") (TSXV: KBLT)(OTCQX: CBLLF)(FRA: 27O), announces that the Company 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 Rotterdam warehousing facility.  The total amount of the settlement received by the Company is more than US$6.8 million based on the highest price of premium grade cobalt during the month of loss, which was US$40.85 per pound, as quoted by Metal Bulletin on July 4, 2018.

The 76 tonnes represented approximately 2.6% 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 LME certified and bonded warehouses in the U.S. 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 CEO.

Cobalt 27 has submitted a notice of intention to undertake a normal course issuer bid to the TSX Venture Exchange ("TSXV") in connection with the purchase by Cobalt 27 of up to 8,400,000 of its common shares, representing 9.9% of the 84,815,780 common shares comprising Cobalt 27's total issued and outstanding common shares as of November 5, 2018.  All common shares purchased by Cobalt 27 will be purchased on the open market through the facilities of the TSXV in accordance with the rules, regulations and policies of the TSXV and will be cancelled.