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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.
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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