Next Generation Electric Vehicle Supply Chain TSX-V: FCC July 8, 2020 OTCQX: FTSSF TSX.V: FCC | OTCQX: FTSSF 1
All statements in this presentation other than statements of historical fact constitute “forward-looking statements” within FORWARD the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation and are based on the reasonable expectations, estimates and projections of First Cobalt Corp. as LOOKI NG of the date of this presentation. Forward-looking statements and forward-looking information include, without limitation, possible events, trends and opportunities and statements, including with respect to the state of the cobalt market, global STATEMENTS market conditions, the proposed development of the First Cobalt Refinery, the processing of cobalt hydroxide feedstock, the ability to secure financing, results of exploration activities, potential acquisitions, capital expenditures, successful development of assets, currency fluctuations, government policy and regulation and environmental regulation. In particular, forward-looking information included in this presentation includes, without limitation, the opportunity to restart the First Cobalt refinery and targeted metrics. Generally, forward- looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or variations of such words or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and forward-looking information. Such factors include changes in supply and demand for cobalt, the results of metallurgical and engineering studies, changes in competitive pressures, timing and amount of capital expenditures, changes in capital markets, changes in exchange rates, unexpected geological or environmental conditions, changes in and the effects of, government legislation, taxation and regulations and political or economic developments, success in attracting officers for the future success of the Company’s business, success in obtaining any required additional financing to advance strategic priorities, and risks associated with obtaining necessary licenses or permits. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements and forward-looking information made by, or on behalf of, the Company. There can be no assurance that forward- looking statements and forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking statements and forward-looking information made in this presentation are qualified by these cautionary statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such statements will prove to be accurate, as actual results could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws. Timelines used in this presentation are for the purpose of aiding management in the planning and implementation of the projects and are not based on a detailed assessment of project requirements. Consequently, the timelines are subject to material revision as subsequent technical reports and assessments are completed. Future phases of the project are contingent upon completion of preceding phases. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. This presentation includes a summary of the results of a feasibility study related to the First Cobalt Refinery Project. This study does not constitute a feasibility study within the definition employed by the Canadian I nstitute of Mining, Metallurgy and Petroleum (CI M), as it relates to a stand-alone industrial project and does not concern a mineral project of First Cobalt. As a result, disclosure standards prescribed by National I nstrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) are not applicable to the scientific and technical disclosure in the study and in this presentation to the extent it relates to the Refinery Project. Dr. Frank Santaguida, P.Geo and Peter Campbell, P.Eng. are Qualified Persons as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Project (“NI 43-101”) and has reviewed and approved the technical content in this presentation. Both are employed as officers of First Cobalt. TSX.V: FCC | OTCQX: FTSSF 2
LEADERSHI P TEAM TRENT MELL PETER CAMPBELL P .ENG DR. FRANK SANTAGUI DA P .GEO President, CEO & Director Vice President, Business Development Vice President, Exploration RYAN SNYDER CPA JOHN POLLESEL GARETT MACDONALD P .ENG Chairman Director Chief Financial Officer CEO, Boreal Agrominerals Inc. President & CEO, Maritime Resources GOV. BUTCH OTTER SUSAN UTHAYAKUMAR HENRI K FI SKER Director Director Special Advisor Retired, Governor of Idaho (’07-’19) President, Schneider Electric Canada Chairman & CEO Fisker Inc. TSX.V: FCC | OTCQX: FTSSF 3
SHARE STRUCTURE TI CKERS: (TSX-V: FCC, OTCQX: FTSSF) 387.3M Covering Analysts SHARE PRI CE Basic C$0.14 (TSX-V July 8, 2020) 24.6M 52 WEEK C$0.195 David Talbot 9.1M at $0.27 (exp. 03/21) HI GH/ LOW C$0.075 15.3M at $0.21 (exp. 02/22) Warrants AVE. VOL/ DAY 870,000 (20-DAY) Derek Macpherson 15.2M MARKET CAP C$62M $0.38 ave. price Options Tran ransfer r of c coverag rage WORKI NG CAPI TAL C$5.5M (03/31/20) TSX.V: FCC | OTCQX: FTSSF 4
NORTH AMERI CA’S VULNERABI LI TY 100% Reliant on I mports of Cobalt Sulfate for Lithium-ion Batteries 01 Majority of cobalt is mined in Africa, largely under Chinese control 02 Most African production is then exported to China for refining 03 China poised to control 80% of cobalt sulfate market 1 04 No significant cobalt production in North America for several years 1. Source: Benchmark Mineral Intelligence TSX.V: FCC | OTCQX: FTSSF 5
FI RST COBALT ASSETS First Cobalt Refinery North America’s only primary cobalt refinery I ron Creek Project Canadian Cobalt Camp High grade cobalt-copper resource on patented 50 past producing cobalt- property in I daho Cobalt Belt silver mines on more than 11,700 hectares Honda Plant GMC Plant Chrysler Plant LG Chem Tesla Gigafactory Ford Plant Toyota Plant Tesla Plant GMC Plant Apple Headquarters Chrysler Plant Ford Plant Google Headquarters GMC Plant TSX.V: FCC | OTCQX: FTSSF 6
COBALT REFI NI NG A North American First TSX.V: FCC | OTCQX: FTSSF 7
FEASI BI LI TY STUDY First Cobalt Refinery Overview • Hydrometallurgical cobalt refinery located in Ontario, Canada • Commissioned in 1996 and on care and maintenance since 2015 • Objective is to expand facility to produce cobalt sulfate for the North American & European EV markets > 20.5% CoSO 4 5,000 tpa cobalt US$78M Battery grade, high Production Scenario Replacement Value purity cobalt sulfate (Hatch Report, 2012) TSX.V: FCC | OTCQX: FTSSF 8 8
MI LESTONES & UPCOMI NG CATALYSTS Milestones Future Catalysts Glencore MOU: Glencore Loan & Feasibility Study Feed Supply & Commencement of Completion Offtake DFS April 2019 May 2019 May 2019 Aug 2019 Oct 2019 May 2020 Produced Battery Refinery Refinery Field Grade Cobalt Sulfate Scoping Study Work and Metallurgical Testing Pilot Plant 55 tpd Commissioning Testing Q2-Q3 2020 Q3-Q4 2020 Q1 2021 Q4 2021 Commercial Terms & Product Financing Package Qualification with End Users TSX.V: FCC | OTCQX: FTSSF 9
FEASI BI LI TY STUDY Highlights Strong project Annual production of 25,000 tonnes of battery grade cobalt 1 economics support sulfate, representing 5% of the total global refined cobalt market development of North America’s first battery- grade cobalt producer 2 $56 million capex and $2.72/lb cobalt operating cost 3 $139 million after-tax NPV(8) and 53% after-tax IRR “With most of the world’s cobalt refining Commercial discussions underway with Glencore, with funding 4 capacity located in including third parties and government China, there is strong demand for a North Strong interest in EV supply chain for an ex-China source of American alternative.” 5 cobalt sulfate - Trent Mell TSX.V: FCC | OTCQX: FTSSF 10
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