Cobalt 27 Capital Corp. Prices $200 Million Public Offering of Common Shares and Files Final Prospectus

TORONTO, ON--(Marketwired - June 16, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Cobalt 27 Capital Corp. (the "Company" or "Cobalt 27") (TSX VENTURE: KBLT) is pleased to announce that it has priced its public offering (the "Offering") of 22,222,225 post-consolidated common shares ("Shares") at a price of $9.00 per Share (the "Offering Price"). The $200 million Offering will consist of 10,924,420 Shares being sold for gross cash proceeds of $98,319,780, and 11,297,805 Shares being issued to acquire 1,205.6 tonnes of physical cobalt for a total cost of $101,680,245. Cobalt 27 has filed its final long form prospectus dated June 16, 2017 (the "Prospectus") with the securities commissions in each of the provinces and territories of Canada, except Québec, in connection with the Offering.

The Offering is being made through a syndicate of underwriters led by Scotia Capital Inc., Canaccord Genuity Corp., and TD Securities Inc. (the "Lead Underwriters") and includes BMO Nesbitt Burns Inc., GMP Securities L.P., Haywood Securities Inc., Cormark Securities Inc., Eight Capital, PI Financial Corp., Sprott Private Wealth Inc. and Numis Securities Inc., (collectively, with the Lead Underwriters, the "Underwriters"). The Company has entered into an underwriting agreement with the Underwriters for the Offering.

The Company has granted to the Underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 3,333,333 Shares at the Offering Price.

The Company has provided notice to each of the vendors of physical cobalt that the Company will be acquiring the full amount of cobalt previously optioned. Pricing under each contract ("Cobalt Contracts") has been established, and in aggregate the Company will be acquiring 2,157.5 tonnes of physical cobalt consisting of 1,486.5 tonnes of premium-grade cobalt and 671.0 tonnes of standard-grade cobalt. A total of 951.9 tonnes of cobalt are being acquired for cash consideration, with the balance of 1,205.6 tonnes of cobalt being acquired for Shares. An aggregate of 11,297,805 Shares will be issued to and held by the vendors of cobalt, which will represent approximately 47% of the Company's total issued and outstanding Shares upon closing of the Offering and the Cobalt Contracts.