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OCTOBER 2017 INVESTOR PRESENTATION

CAUTIONARY NOTE - Amazon S3 · 2017-12-19 · CAUTIONARY NOTE The material contained in this presentaon is provided solely for your general knowledge and is not intended to be a comprehensive

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OCTOBER2017INVESTORPRESENTATION

CAUTIONARY NOTE Thematerialcontainedinthispresenta@onisprovidedsolelyforyourgeneralknowledgeandisnotintendedtobeacomprehensivereviewofallmaIersanddevelopmentsconcerningQuantumCobaltCorp.(‘QuantumCobalt’)oritsaffiliates.QuantumCobalthastakenreasonablecareinproducingtheinforma@[email protected]@onmays@llcontaintechnicalorotherinaccuracies,omissions,ortypographicalerrors,forwhichQuantumCobaltassumesnoresponsibility.QuantumCobaltmakesnorepresenta@onorwarrantyregarding,andassumesnoresponsibilityfor,theuse,validity,accuracy,completeness,reliabilityorcurrencyofanyclaims,statementsorinforma@[email protected]@on,youagreethatQuantumCobaltwillnotbeliableforanyinjuries,losses,expensesordamagesarisingfromtheuseoforrelianceoninforma@oncontainedinthispresenta@on,oranyinaccuracyoromissioninsuchinforma@[email protected]@oninthispresenta@onisnotasubs@tuteforobtainingindependentprofessionaladvicebeforemakinganyinvestmentdecisions.Theinforma@oncontainedinthispresenta@ondoesnotcons@tuteanofferorthesolicita@onofanofferforthepurchaseofanysecuri@esofQuantumCobalt.Thisinforma@onisnotintendedinanywaytoqualify,modifyorsupplementanyinforma@ondisclosedunderthecorporateandsecuri@[email protected]@escommissionorsimilarauthorityinCanadaoranyothercountryorjurisdic@onhasinanywaypassedonanyoftheinforma@oncontainedinthispresenta@onandnorepresenta@onorwarrantyismadebyQuantumCobalttothateffect.ThisPresenta@onisnotfordistribu@onintheUnitedStates.

``

BUILDINGONEOFTHELARGESTLANDPACKAGESINTHEPROLIFICMININGTOWNOFCOBALT,ONTARIO

WeBring100+yearsoffarmingexperienceacrossthreegenera@ons.

Believedtobethenextinvestmenttrendinelectricvehicles,cobaltsupplyinacurrentdeficitleadingaspotpriceincreaseof80%yeartodate

Theepicentreofcobaltproduc@oninOntario

INVESTMENT HIGHLIGHTS

DEMAND LANDPACKAGE

LOWVALUATION

•  Cobalt up 80% year-to-date •  Cobalt believed to be the next

investment trend •  Is a critical component of lithium-ion

batteries •  Currently in a supply deficit •  Has a vulnerable supply chain •  Has been overlooked by investors.

•  Located in the prolific district of Cobalt, Ontario which has been the epicentre of past producing cobalt mines in Ontario.

•  Two past producing mines on property •  Exploration upside with historic work

showing cobalt, gold and nickel mineralization occurs with an assay of 8.76% Co, and 6.56% Ni.

•  Trading at a substantial discount to comparable exploration companies in the surrounding areas

•  Experienced capital markets team with records of delivering shareholder value

•  Near-term catalyst with upcoming work program

Lithium-Ion Batteries Cobalt is a key raw material in manufacturing cathodes for lithium-ion batteries. Cobalt is the most critical mineral constraint in lithium-ion batteries and has been largely overlooked by investors1

Demand Growth Demand expected to increase 10% this year to 110k tons. 43% of incremental demand is for batteries.

Problematic Supply Chain About 60% of the world’s cobalt comes from the Democratic Republic of Congo which has experienced much instability and has been associated with practices such as forced labour, child labour, unhealthy working conditions and corruption.

Spot Price Spot price increase of 150% since the beginning of 2016. Macquarie Bank forecasts a deficit of 885 tonnes is expected in 2018, with deficits of 3,205 tonnes and 5,340 tonnes expected in 2019 and 2020, respectively

WHY COBALT

QuantumCobaltiswellposi@onedtotakeadvantageoftheupcominggreentechnologyboom

51.InvestorIntel.com,March2016

•  Last5yearshaveseena20%peryearcostreduc@oninbaIerypacksystems

•  Atthecurrentrateofimprovement,EVdrivetrainsareforecasttosurpassthecostcompe@@venessofcombus@onengineswithinfivetotenyears

LITHIUM-ION BATTERIES

3

CobaltUseInBa@eryCathodes (source:DeutscheBankLithium101report,CSIROpresentaOon,DBFutureMetalsConference25/06/2013)

Acronym LCO NCA NMCMaterialComponents

LithiumCobaltOxide NickelCobaltAluminum NickelManganeseCobalt

Uses Mobilephones,laptops Electricpowertrainsforvehicles,energystorage

Electricpowertrainsforvehicles,powertools

Characteris@cs Incumbenttechnologyfirstintroducedin1991,highenergydensitybutincurslongercharge@mesandshelflifeof1-3years

Highspecificenergyandlonglifespan;safetyandcostwerehistoricalconcernsbutthesearenowresolved;TeslausesNCA

Canbetailoredtohighspecificenergyorhighspecificpower;mostJapaneseandKoreanproducerssellNMCintoEVmarket

12xexpectedincreaseinthenumberofelectriccarstobesoldinChina,fromcurrent1%EVadop@onrateinChinatoday.

GROWING BATTERY CAPACITY & DEMAND

3

75%

0

12x

Chinaistheworld’sleaderincobaltconsump@on.NewgovernmentsubsidiesareexpectedtofurtherincreaseChina’sdemandforcobalt.

#1

Nearly75%ofChina’sconsump@onbeingusedbythebaIeryindustry.New5-YearPlantopushforupto15%ofChina’spowertocomefromnon-fossilfuels.

Chinarecentlyannouncednewplantobanfossilfuelcars.

•  ElectricvehicleproducerssuchasTesla,VolkswagenandothermanufacturersaresearchingbeyondtheDRCforcobaltsupplytoavoidsupplydisrup@onsandasconsumerspresscompaniesforauditableandethicalmaterialsourcing

•  Tesla’sGigafactoryrequiresmorecobaltperyearthanen@reUSannualproduc@on

•  Tesla’sentryintohomestoragebaIeriesandsolarpanelsfurtherincreasetheneedforcobalt

•  Itises@matedthattherapidadop@onofelectricvehiclesbetweennowand2035willcreateanuplilforcommodi@esdemandeight@meslargerthanthatgeneratedbyChina’sboomintheearly2000s.

ELECTRIC CAR REVOLUTION

3

•  Morethanone-halfoftheworld’sproduc@onisminedintheDemocra@cRepublicofCongo(DRC)1

•  TheDRCpresentssignificantethical,environmental,andpoli@calrisksasthecountryhasbeenimplicatedinchildlabourforcobalt

•  45%ofDRCcobaltisproducedbyar@sanalmining

•  95%ofcobaltproducedgloballyisaby-productofcopperandnickelmining.Weakcopperandnickelpriceshavecausedanumberofminestocurbproduc@on,significantlyimpac@ngcobaltproduc@on

•  TheUSandChinahaveiden@fiedcobaltasastrategicmetalandarestockpilingcobalt

PROBLEMATIC SUPPLY CHAIN

31.hIps://minerals.usgs.gov/minerals/pubs/mcs/2016/mcs2016.pdf

•  Thespotpriceofcobalthasincrease150%sincebeginningof2016

•  Demandexpectedtoincrease10%thisyearto110ktonnes.

•  Consistentdeficitsexpected1

•  Significantupsideintheeventofsupplydisrup@on

•  Cobaltdeemeda“conflictmineral”fromconsumersdemandingethicalandauditablecobalt

COBALT PRICE

31.MacquarieResearch,Commodi@es,February2017

NIPISSING LORRAIN COBALT PROJECT •  TheNipissingLorrainCobaltproperty(redonmap)islocated

intheheartofdistrictofCobalt,Ontario.

•  NipissingLorrainminehaspastproducOonofover16,500lbsofCoand5,500ofAg.

•  No.5veinofadjoiningCanadianLorrainMineonAgnicoEagle’spropertyexpectedtocon@nueontoproject.

•  Historicsamplesshowing1to10inchesofcobaltmineraliza@on,withtwocarsofcobaltorehistoricallyproducedfromSouthLorrain

•  [email protected]%Co

16,500poundsCoProducedPastcobaltproduc@onatmine

5,500poundsAgProducedPastsilverproduc@onatmine

RABBIT COBALT PROJECT

TheRabbitCobaltpropertyislocated14kmsoutheastofthetownofTemagamineartheeasternborderof

Ontario.

Thedistrictisminingfriendlyhavingarichhistoryofcobaltandsilverproduc@on.

55kmnorthoftheprolificdistrictofCobalt,Ontario.

Mineraliza@onCobalt,goldandnickel

mineraliza@onoccursasCo-Fe-Ni

Historicworkreturnedanassayof8.76%Cobalt,and6.56%

Nickel.

Upcomingworkprogramtoconsistofgeologicmapping,prospecOngandsamplingfocusedontheRabbitLakeOccurrence-amineralshowingdescribedintheOntarioMineralDepositinventory.TheworkwillbeaimedatdefiningtheexisOngmineralshowingandidenOfyingaddiOonalmineralizaOonandafavourablegeologyforfollowuptesOng.

KAHUNA COBALT PROJECT

Thedistrictisminingfriendlywitharichhistoryofcobaltandsilverproduc@on

Propertyiscomprisedof77claimscovering

approximately1,200ha.

Mostrecently,anomalouscobaltandgoldwasdiscoveredin

thesoil.

Mineraliza@onofcobaltdiscoveredfrom

pastwork.

TheKahunaCobalt-Silverpropertyislocated37kmsouthoftheprolificminingtownofCobalt,Ontario.

GREW CREEK GOLD PROJECT •  LocatedintheWatsonLakeMiningDistrictinsoutheastYukon.

•  290drillholes,with270holesdrilledbyGoldenPredatorsince2010

•  $4.7MMspentonexplora@onbyGoldenPredatorsince2010.

•  Drillprogramhighlightsof68.0mof5.96g/tAuand4.0mof63.15g/tAu

•  Near-surfacewithyear-roundaccesswithpowerlinescrosstheproperty

•  CurrentlypermiIedwithClass3Explora@onPermit

•  Planningbasal@llsamplingprogram

19,000mdrilledExplora@onconductedbyGoldenPredatorsince2010270drillholes68.0mof5.96g/tAuand4.0mof63.15g/tAu$4.7MMSpentonexplora@onbyGoldenPredatorsince2010

MUSGROVE CREEK GOLD PROJECT •  Alow-cost,openpitgoldopportunityaimingtoincreaseitsresource.

•  Recentexplora@onac@vityconductedatMusgrovehasbeenfocusedonaddingtothatresourcewiththeobjec@veofestablishingamineabledeposit.

•  Poten@alforlarge,epithermalgolddepositsimilartothenearbyBeartrackMine.

•  Thepropertyisoneofmanymineraldepositsthatoccurwithinamajornortheast-southwest-trendingstructuralzoneknownastheTrans-ChallisFaultSystem.

•  ThesedepositsincludetheBeartrackMineandotherhistoricproducerstothenortheastoftheproperty,andHeclaMiningCo.’sGrouseCreekMineandotherpastproducerstothesouthwest.

8millionstonnesHistoricalInferredMineralResourceAt1.22g/tAu

313,822ozAuEquivalentHistoricalInferredMineralResource

COMPARABLE COMPANIES

20

First Cobalt Corp ü  TSXV:FCC

ü  Stock Price: $0.771

Market Cap: $156,000,0001

ü  Cobalt company with past cobalt and silver producing properties in Ontario with a 7,000 tonnes stock pile sampled @0.95% Co

1.  Pendingannouncedtransac@on

QuantumCobaltislocatedintheepicentreofpastproducingcobaltminesinOntario.Withtwopastproducingminesonthepropertyandhistoricassaysof8.76%cobalt,QuantumCobalthassignificantexplora@[email protected],acomparablecobaltexplora@oncompany,islocatednearCobalt,Ontariowithpastproducingassetshasamarketcapitaliza@onexceeding$156MM(pendingtransac@on).Basedoncurrentpublicmarketcomparable’sofcobaltexplora@oncompaniesinOntariolocatednearpastproducingproper@es,QuantumCobalthassignificantupsidepoten@al.

MANAGEMENT & DIRECTORS KenTollstam,DirectorMr.Tollstam,CPA,CAhasspentanumberofyearsatDeloiIeTouchewhereheobtainedhisCAbeforegoingontoholdvariousExecu@veManagementandDirectorofFinanceposi@onsthroughouthiscareer.MostrecentlyMr.Tollstamservesasdirectorandchieffinancialofficerofseveralprivateandpubliclytradedcompanies.

GregBurns,CEOMr.BurnsistheDirectorofMergersandAcquisi@onsforCapitalInvestmentPartners,aWesternAustralianheadquarteredinvestmentbank.GregwasthepreviousManagingDirectorofXenolith,subsequentlyCoalspurMinesLtd.whichwastakenoverbyClineGroupin2015.HewasalsoadirectorofWhiteCanyonUraniumbeforethecompanywastakenoverbyDenisonMinesin2010.Mr.Burnshasheldsenioropera@onalroleswithGoldstreamMining,AdamusResourcesLimitedandPla@numAustraliaLimited.Mr.Burnshasover22yearsofcorporateandtechnicalexperienceinmineralexplora@onandhasheldexecu@veboardposi@onswithseveralprominentexplora@onandminingcompaniesinCanada&Australia.

JerryHuang,DirectorMr.Huang,CPA.MBA.,startedhiscareeratTier1bankinCanadamanagingover$120MforHNWclientsbeforejoiningexecu@verolesatprominentjuniorminingcompanies.Juniorminingcompanieshewaspartofincluded:TNRGold(JVwithMcEwanMiningonlarge$16BcopperprojectLosAzules)andInterna@onalLithium,thefirstlithiumcompanyonTSXVin2010whichreceivedIPOfundingfromthelargestbaIerycompanyinChina.Hecon@nuestoserveincorporatedevelopmentandinvestorrela@onsroleswithaminingservicecompanyandproducingminerswithcombinedannualrevenuesofover$100M.

QuinnField-Dyte,DirectorMr.Field-Dytehasover10yearsofexperienceinthefinancialindustry,havingservedfrom1996to2001asaninvestmentadviserandlaterasaconsultanttoRaytecDevelopmentCorp.HecurrentlysitsontheboardofdirectorsfornumerousTSXVentureExchange-listedcompaniesinthemetalsandminingindustry.

VonTorres,DirectorMr.Torresbringsexperienceincorporatemanagementservicestobothprivateandpubliccompanies.Mr.Torrescurrentlysitsontheboardandactsinacorporatesecretarialroleofmul@plepubliclytradedcompanies.

MANAGEMENT & DIRECTORS

CAPITAL STRUCTURE

Shares Value

QuantumCobaltCorp. 27,401,608 $27,401,6081

Financing(@$1.00/commonshare&$1.20FTShare)2

900,000 $1,000,000

Post-MoneyValua@on 28,184,107 $14,184,107

CashBalance $2,000,000

Ata$10,041,000pre-moneyvalua@on,QuantumCobaltwillbetradingatadiscounttopublicmarketcomparable’s,withmul@plecatalystsonthehorizonforupwardvalua@onadjustments.

QuantumCobaltwillbewellcapitalizedandposi@onedtoaccelerateitsgrowthstrategytobecomeadominantplayerinthecobaltsector

Shares ValueFinancingWarrants2(@$1.25)

450,000 $562,500

Post-FinancingWarrants

28,751,608 $28,751,608

1.  Basedonfinancingpriceonprivateplacement.SharecountinclusiveofpendingKahunacobaltpropertydeal2.  500,00unitswithacommonshare,400,000flow-thoughunits

CONTACT US

Phone Number: (604) 283-1722

E-Mail [email protected]

Address: Suite 800, 1199 West Hasting, Vancouver