03.05.2018

COBALT POWER GROUP EXTENDS MINERALIZED VEINS SYSTEMS TO OVER 400 M FROM SUCCESSFUL DRILL PROGRAM AT SMITH COBALT PROJECT, ONTARIO

May 3, 2018 Toronto, Ontario – Cobalt Power Group Inc. (“Cobalt Power” or the “Company”) (TSX.V: CPO, OTC Pink: CBBWF) is pleased to report positive results from the Phase 2, 16-hole, 2,345 m (6,220 ft.) drill program at its Smith Cobalt project in Cobalt, Ontario.

Highlights:

  • The mineralized Smith Cobalt veins systems have been extended to over 400 m in strike length, from the western property boundary to the south-east towards the Smith Cobalt East surface.
  • Significant concentrations of Co and Ag were encountered.
  • Thick, highly anomalous zones of battery-related component metals (Cu, Ni, Zn) were intersected in multiple holes.
  • Multiple mineralized veins were intersected in most holes.
  • Confirmed and characterized vein systems mapped from historical mine workings.
  • Confirmed that the Smith Cobalt property lies in the same stratigraphic and structural setting as the nearby Deer Horn Mine.

Assay Highlights Include:

  • 371.0 g/t Ag and 0.10% Co over 1.0m in hole 17-23
  • 0.20% Co over 4.0m in hole 17-23
  • 1.15 g/t Ag over 64.0m in hole 17-22
  • 5.73 g/t Ag, 0.17% Cu, 0.29% Pb and 0.43% Zn over 6.0m in hole 17-24
  • 3.08 g/t Ag over 49.2m in hole 17-25
  • 211.0 g/t Ag and 0.193 g/t Au over 0.20m in hole 17-25
  • 22.7 g/t Ag, 0.27% Co, 0.52% Cu and 0.439 g/t Au over 1.0m in hole 17-25

Holes 17-21 to 17-25 were drilled to extend the known vein systems extending to the south-east from the Smith Cobalt shaft. These holes were successful in extending the mineralized strike length to over 400 m from the western property boundary. This includes silver concentrations up to 371 g/t over 1.0m in hole 17- 23, and cobalt concentrations up to 0.20% over 4.0 m in hole 17-22. Holes 17-23 and 17-24 ended short of  the planned target, having intersected what is probably old mine workings, or at least intense fracturing around those workings.

Holes 17-10 to 17-19 were short holes drilled under the Smith Cobalt East outcrop (see July 17, 2017 news release, 12.5% Co, 82.2 g/t Ag and 5.0 g.t Au in a 10cm wide vein). All the holes intersected quartz-calcite veining with occasional significant values. It appears that the main mineralization may be offset by a major NE-SW fault cutting across the outcrop.

Hole 17-20 was drilled at a steep angle to test the thickness of the diabase. The hole was stopped at 321.0 m, still in diabase. The variable textures and mineral content of the diabase suggests that this may be a feeder dyke for the sill. Of particular note is the very long intersection of highly anomalous nickel (0.03% Ni over 71.0 m).

“We are very excited to have traced the strike length of the mineralized veins systems to such a significant extent,” Chris M. Healey, P. Geo and VP Exploration, comments. “This drill program has added significantly to our knowledge of the mineralization in the Smith cobalt area and will allow us to plan more focused drilling for the next phase.”

A full table of significant intersections is shown below:

AGAT Laboratories of Mississauga, Ontario, provided all analytical services. Samples were prepared in AGAT’s Timmins facility. Drill core samples were analyzed in Mississauga, using a 4-acid digest, with an ICP/ICP-MS finish, except for Au, which was analyzed by fire assay. Upper limits for reporting were 100 ppm for Ag and 10,000 for each of Co, Cu, Ni, Pb and Zn. Over limits were analyzed with a sodium peroxide fusion and ICP-OES/ICP-MS finish. Standard procedures included the insertion of standard reference material at pre-determined intervals, as well as running duplicate analyses on sample reject material. All samples passed QA/QC review performed by the company’s qualified person.

The drill contractor was G4 Drilling, Val d’Or.

Collar details are shown in the tables below.

About Cobalt Power Group Inc

Cobalt Power Group Inc. is a publicly traded Canadian exploration company listed on the TSX-Venture Exchange and U.S. Pink Sheets (TSX-V: CPO, OTC Pink: CBBWF) focused on cobalt exploration and development.

The Company has made a series of strategic property acquisitions over the past year, seeking cobalt mineralization near Cobalt, Ontario – a region with a long history of silver and associated cobalt production. Property holdings including the Canadian Cobalt Project and the Coleman Township properties total approximately 11,680 hectares (28,861 acres) in contiguous and strategic claim blocks. There are several historic mining operations on the properties that are potentially accessible, including the Smith Cobalt shaft and its underground workings.

The Company recently announced that it has agreed to acquire Western Cobalt Corp., a privately held mineral exploration company that holds nine strategically located mineral claims totalling 8,146 hectares (20,130 acres) in the eastern Athabasca basin of Saskatchewan, Canada.

Chris M. Healey, P. Geo, VP Exploration and a Director of Cobalt Power Group is the qualified person responsible for the technical content of this release, and consents to its dissemination.

On behalf of the Board of Directors

Greig Hutton CEO, President & Director
Cobalt Power Group Inc.
www.cobaltpowergroup.com

We seek safe harbor.

For additional information, please contact

Greig Hutton, CEO, President & Director
226 973-6692

Glenda Kelly, VP Corporate Communications
403 830-1436.
glenda@cobaltpowergroup.com
www.cobaltpowergroup.com

The company’s profile may also be viewed on www.sedar.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. WARNING: The Company relies on litigation protection for “forward-looking” statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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Cautionary Statement on Forward-Looking Statement

Certain information contained in this news release, including information as to our strategy, projects, plans or future financial or operating performance and other statements that express management’s expectations or estimates of future performance, constitute “forward-looking statements”. Actual results may differ materially from those indicated by such statements. All statements, other than historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

In connection with the forward-looking information contained in this news release, CPO has made numerous assumptions. While CPO considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause CPO’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein.

A more complete discussion of the risks and uncertainties facing CPO is disclosed in CPO’s continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and CPO disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.