Corporate Presentation January 2019 0 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
Disclaimer Forward-Looking Statements Certain statements contained in this presentation constitute “forward -looking By their nature, forward-looking statements involve numerous current information” or “forward -looking statements” (collectively, “forward -looking assumptions, known and unknown risks, uncertainties and other factors which statements”) within the meaning of applicable Canadian and United States may cause the actual results, performance or achievements of the Company to securities laws relating to, without limitation, expectations, intentions, plans differ materially from those anticipated by the Company and described in the and beliefs, including information as to the future events, results of operations forward-looking statements. and the Company’s future performance (both operational and financial) and business prospects. In certain cases, forward-looking statements can be With respect to the forward-looking statements contained in this presentation, identified by the use of words such as “expects”, “estimates”, “forecasts”, assumptions have been made regarding, among other things: cobalt market “intends”, “anticipates”, “believes”, “plans”, “seeks”, “projects” or variations of prices; future cobalt prices; future global economic and financial conditions; such words and phrases, or state that certain actions, events or results “may” future commodity prices, demand for cobalt and the product mix of such or “will” be taken, occur or be achieved. Such forward-looking statements demand and levels of activity in the battery metals industry and in such other reflect the Company’s beliefs, estimates and opinions regarding its future areas in which the Company may operate, and supply of cobalt and the growth, results of operations, future performance (both operational and product mix of such supply; the accuracy and veracity of information and financial), and business prospects and opportunities at the time such projections sourced from third parties respecting, among other things, future statements are made, and the Company undertakes no obligation to update industry conditions and demand for cobalt; and, where applicable, each of forward-looking statements if these beliefs, estimates and opinions or those assumptions set forth in the footnotes provided herein in respect of circumstances should change. Forward-looking statements are necessarily particular forward-looking statements. based upon a number of estimates and assumptions made by the Company that are inherently subject to significant business, economic, competitive, Although the Company has attempted to identify important factors that could political and social uncertainties and contingencies. Forward-looking statements cause actual actions, events or results to differ materially from those described are not guarantees of future performance. In particular, this presentation in its forward-looking statements, there may be other factors that cause contains forward-looking statements pertaining, but not limited, to: the actions, events or results not to be as anticipated, estimated or intended. completion, size, expenses and timing of the offering of common shares by the There can be no assurance that forward-looking statements will materialize or Company and the use of proceeds therefrom; expectations regarding the price prove to be accurate, as actual results and future events could differ materially of cobalt and sensitivity to changes in such prices; industry conditions and from those anticipated in such statements. The forward-looking statements outlook pertaining to the cobalt market; expectations respecting future contained in this presentation are expressly qualified by this cautionary competitive conditions; industry activity levels; and the Company’s objectives, statement. Readers should not place undue reliance on forward-looking strategies and competitive strengths. statements. These statements speak only as of the date of this presentation. Except as may be required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements or information whether as a result of new information, future events or otherwise. 1 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
The Need for Change Greenhouse gas emissions from New technologies and more The transportation transportation have risen more rapidly aggressive policies are needed to sector is one of the than any other energy end-use sector reduce emissions as transportation since 1970 largest polluters of demand is expected to rise CO 2 emissions significantly • Approximately 80% of this is attributable to road vehicles Global Transport Global Transport CO2 Emissions by Subsector CO2 Emissions by Region Transport accounted for ¼ of total emissions in 2016, Americas had the highest transportation emissions levels of at approx. 8 GtCO2, 71% higher than 1990. all regions. Asia is quickly closing the gap with annual growth rates 5x larger than the Americas 9 3 8 7 6 2 5 GtCO 2 GtCO 2 4 1 3 2 1 0 0 1990 2016 Road Air Water Other Americas Europe Asia Africa Source: International Energy Agency. GtCO 2 represents gigatonne of carbon dioxide. 2 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
The World is Responding 100 Million EVs by 2030 39+ Automakers targeted by the Paris Declaration on Electro-Mobility and have invested in electric and plug-in hybrid electric Climate Change vehicles The vast majority of these are Could require an increase of utilizing battery technology >4x involving cobalt Volvo has pledged to current annual cobalt manufacture only electric production and hybrid vehicles by 2019 TODAY 2030 Gas/Diesel Vehicles Ban China has set a target that would see zero emission vehicles Governments are responding by banning the sales of gasoline and diesel vehicle by: 10% Potentially massive opportunity for 2025 2030 the cobalt-based EV industry with Norway and India and China’s expanding middle class Netherlands Germany of new sales by 2019 2040 TBA 7 Chinese automakers rank in the 12% top 20 in terms of EV unit sales UK and China is working with France regulators to set a timeline of new sales by 2020 3 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
Battery Sector is Largest and Fastest Growing End Use Chemical Metallurgical Cobalt applications Chemical applications are Metallurgical cobalt is can be subdivided into dominated by the mainly used to produce two categories: rechargeable batteries high-temperature alloys; segment in particular, “superalloys” Total Demand by Sector Cobalt Content by Device 2017 Total Demand: ~104 kt Amount Cost 1 Tyres/Paint Magnets Other Hard The batteries market represented: Driers 3% 3% Facings EVs 4 – 14 kg Up to ~US$1,203 3% 4% ~78% of chemical cobalt demand ~50% of global cobalt demand PHEVs <1 – 4 kg Up to ~US$344 Catalysts Consumer 6% Batteries 38% Laptop 30 – 50 g Up to ~US$4.30 Ceramics /Pigments Tablets 20 – 50 g Up to ~US$4.30 5% Co The battery market represents Hard Metals 7% Smartphone 5 – 20 g Up to ~US$1.78 50% of cobalt demand Li 36% of lithium demand Superalloys EV Battery 16% 15% 2016 Source: Darton Commodities, Metal Bulletin, Broker research. Numbers may not sum due to rounding (1) Based on Metal Bulletin high-grade cobalt price of US$38.98/lb as at July 11, 2018; then applied to the estimated high end of the contained mass of cobalt range 4 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
Car Manufacturers - EV Spending & Sales US$300 Billion in EV Spending - 45% earmarked for China $100 USD $80 $60 Source: Reuters Jan 2019 Total EV Investment $40 Batteries Only $20 $0 EV Share of New Car Sales 5.00% China 4.00% Europe Japan 3.00% North America 2.00% Korea 1.00% Source: Bloomberg NEF Q4 2018 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 2018 5 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
Global and Regional EV Sales Worldwide EV Sales - Cumulative number of EVs sold in the first 8 months of 2018 – 1.079 Million; up 69% YoY 200,000 150,000 100,000 2016 50,000 2017 2018 0 Source: Inside EVs Q4 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Regional Share of Global EV Sales 100% RoW 80% Korea 60% North America Japan 40% Europe 20% China 0% Source: Bloomberg NEF Q4 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 2017 2018 6 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
Battery Metals: Raw Material Requirements for the EV Revolution Aluminum Nickel Cobalt Lithium Nickel & cobalt are Sulphate Sulphate Sulphate Carbonate Example of a key ingredients for Nickel-Cobalt- the manufacturer Aluminum of lithium-ion NCA Battery batteries NCA Cathode 8 parts 1 part 1 part 1 part Material Global Mining Map of Lithium-ion Battery Materials Lithium-ion battery cells typically encased in nickel bearing casing Packs Mining of battery metals is highly concentrated 32 countries account for all global production of battery metals EVs & Grid ESS 50% of production of these commodities is concentrated to 1-3 countries typically 7 www.cobalt27.com | TSXV : KBLT | OTCQX: CBLLF | FSE: 27O
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