Cobalt Blockchain Announces Private Placement and Provides Corporate Update

COBALT BLOCKCHAIN ANNOUNCES PRIVATE PLACEMENT AND

PROVIDES CORPORATE UPDATE

TORONTO, ONTARIO (May 17, 2018) – Cobalt Blockchain Inc. (“COBC” or the

"Company") (TSXV:COBC) is pleased to provide a corporate update related to progress on

expanding its existing commodity trading business to include certified, ethically-sourced cobalt

from the Democratic Republic of the Congo (“DRC”).

Private Placement

The Company has engaged IBK Capital Corp. (“IBK Capital”) to complete a private placement

of up to 12,000,000 common shares at a price of $0.25 per common share (the “Private

Placement”) for gross proceeds of up to $3,000,000. Use of proceeds from the Private Placement

include establishment of cobalt trading operations, initial cobalt concentrate purchases, mineral

processing equipment, transaction costs, costs associated with technology platform development,

and general working capital.

In connection with the Private Placement, the Company has agreed to pay IBK Capital a cash

commission equal to 8% of the amount raised and broker warrants equal to 10% of the number

of common shares issued pursuant to the Private Placement. Each broker warrant is exercisable

into one common share at a price of $0.25 per common share for a period of five years from the

date of issuance.

Copper/Cobalt Trading License

The Company has received approval from DRC provincial authorities in Lualaba and Haut-

Katanga provinces for the necessary licensing required to establish trading depots, purchase

copper and cobalt concentrates, and export to international buyers.

All associated licensing fees and studies have now been submitted to the federal Ministry of

Mines, with final ratification expected shortly.

Trading Depot Construction

COBC has begun initial arrangements to set up its cobalt trading facilities in the DRC, which

will include a 1,000 square metre depot with storage, assay lab, clinic and office capabilities.

The depot site will also incorporate perimeter fencing and security equipment.

On completion of the trading depot, COBC will purchase its first cobalt concentrate from

COMIKU as per the cobalt supply agreement announced on April 6, 2018. Under this supply

2

agreement, and commencing in June 2018, COBC will be supplied with a minimum of 40,000

tonnes of cobalt concentrate per annum, with a minimum grade of 1% cobalt.

Supply Chain Provenance

COBC is the first mining and mineral trade company set up specifically to procure cobalt in

compliance with the OECD due diligence framework.

This compliance framework ensures that the Company’s local operations and supply chain

contribute positively towards addressing child labour and other challenges associated with

artisanal and small-scale mining (ASM) in the DRC.

Since March this year, COBC has been working with BetterChain S.L. to develop an

Autonomous Due Diligence (ADD) Protocol. The protocol can be used by any upstream mining

and mineral trade operator to demonstrate OECD compliance and improve upstream reporting,

whether sourced via ASM or otherwise, and throughout the mining supply chain.

COBC is also continuing to work with other partners toward establishing its blockchain

provenance platform, which will be piloted in parallel with the Company’s OECD-compliant due

diligence framework.

Conferences and Events

Over the past few months, the Company has presented keynotes and participated in panels at key

mining and blockchain events, including at the Canadian Council on Africa, Investing in African

Mining Indaba, Blockchain Toronto, and the InvestorIntel Summit.

COBC will also be at the following upcoming conferences and events:

▪ May 23-24: Cobalt Institute Conference, Las Vegas, Nevada

▪ May 23-24: IFC Sustainability Conference, Washington, DC

▪ June 1: Blockchain for Social Impact, Washington, DC

▪ June 14-15: Mining Investment North America, Toronto, ON

▪ June 13-15: DRC Mining Week, Lubumbashi, DRC

▪ June 19: Empire Club - Blockchain Revolution, Toronto, ON

About Cobalt Blockchain Inc.

Cobalt Blockchain Inc. (TSXV:COBC) is a Canadian resource company expanding its

exploration and development business to include cobalt assets in the Democratic Republic of the

Congo (DRC). COBC has acquired a 100% interest in an existing metals trading business

specializing in sourcing minerals from artisanal and small-scale mines in the DRC, in

3

compliance with international procurement standards. Leveraging its experience with existing

supply chain due diligence initiatives, COBC is working with partners to develop a blockchain-

based reporting platform to provide greater certainty of provenance and further assurance that all

minerals procured are ethically-sourced. Senior management have over twelve years of

experience working in the DRC and a proven international track record in exploration success

and the trading of certified conflict-free, child-labour-free minerals.

For additional information, please contact:

Lance Hooper, President and Chief Operating Officer

Cobalt Blockchain Inc.

Telephone: +1-416-500-3670

Email: [email protected]

Website: www.cobc.co

Forward-Looking Information

This release includes certain statements that may be deemed "forward -looking statements". All statements in this

release, other than statements of historical facts, that address future production, reserve potential, exploration drilling,

exploitation activ ities and events or developments that the Company expects are forward -looking statements.

Although the Company believes the expectations expressed in such statements are based on reasonable assumptions,

such statements are not guarantees of future performa nce and actual results or developments may differ materially

from those in the statements. There are certain factors that could cause actual results to differ materially from those in

forward-looking statements. These include market prices, exploitation an d exploration successes, continued

availability of capital and financing, and general economic, market or business conditions. Investors are cautioned

that any such statements are not guarantees of future performance and actual results or developments may differ

materially from those projected in the forward -looking statements. For more information on the Company, investors

should review registered filings at www.sedar.com.

Neither the 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.