NTH.V · 2020-05-28 12:00:00

Canada Silver Cobalt Releases Maiden NI 43- 101 Mineral Resource Estimate for Castle East Robinson Zone

Resource Estimates

Canada Silver Cobalt Releases Maiden NI 43-

101 Mineral Resource Estimate for Castle East

Robinson Zone

COQUITLAM, BC

May 28, 2020

/CNW/ - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC:

CCWOF) (

Frankfurt

: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce the

results of its first NI 43-101 Mineral Resource estimate for the early stage Castle East Robinson

Zone discovery in the heart of the past producing Gowganda Silver Camp, 75 kilometers southwest

Kirkland Lake

Castle East is part of Canada Silver Cobalt's 100%-owned, 78 sq. km Castle Property also featuring

the Castle mine. Late last year the company initiated a follow-up program to a 2011 discovery hole

approximately two km southeast of the mine, and within two km of two other past producers, that

returned a high-grade intercept of

40,944

g/t silver (

1,194 oz/ton

) over a core length of 0.45 meters

(refer to

August 25, 2011

, Gold Bullion Development news release). Four holes (CS-19-08W1, CS-

19-08W2, CS-19-08W3 and CS-19-W4) were wedged off the 2011 hole followed by four holes (CS-

19-20, CS-19-21, CS-20-22 and 23) drilled to intersect the vein zone from a different angle. The

latest hole was drilled parallel to and collared 45 meters from the historic hole. CCW's program

aimed to delineate the extent of the high-grade mineralization within the Robinson Zone that shows

very high grades in the form of native silver.

The mineral resource estimate used the four wedge holes and the four holes drilled from surface

(CS-19-08W1 to W4; CS-19-20, CS-19-21; CS-20-22 and CS-20-23) and one historical drill hole

(CA1108).

This resource estimate was independently prepared by GoldMinds Geoservices Inc. in accordance

with National Instrument 43-101 ("NI 43-101") and is dated

May 28, 2020

Notably, Zones 1A and

have an average silver grade of 8,582 g/t (250.2 oz/ton) in a

combined 27,400 tonnes of material for a total of 7,560,200 Inferred ounces using a cut-off

grade of 258 g/t AgEq

(mineral resources which are not mineral Reserves do not have

demonstrated economic viability).

Table 1:

Mineral Resource Estimate at Castle East Using a Cut-Off Grade of 258 AgEq g/t

Inferred Mineral

Resources

AgEq

Tonnes

AgEq

g/t

Oz.

Zone 1A

7,960

946

349

790

8,042

8,100

2,073,000

2,094,200

Zone 1B

8,843

2,308

325

336

8,998

19,300

5,487,200

5,583,200

Zone 2A

5,673

2,101

453

118

108

426

5,500

6,800

75,300

Total Inferred

Mineral

Resources

7,149

2,537

628

467

7,325

32,900

7,567,000

7,752,700

Notes:

Mineral resources which are not mineral Reserves do not have demonstrated economic viability.

The estimate of mineral resources may be materially affected by environmental, permitting,

legal, title, market or other relevant issues. The quantity and grade of reported Inferred

resources are uncertain in nature and there has not been sufficient work to define these Inferred

resources as Indicated or Measured resources;

The database used for this mineral estimate includes drill results obtained from historical (2011

one hole) to the recent 2019 drill program and wedges from the 2011 diamond drill hole;

Mineral resources are reported with mineable shape cut-off grade equivalent to

$125 USD

(258

g/t AgEq) including mining, shipping and smelting cost with recovery of 95%. The high-grade

value of the mineral resources may potentially allow for direct shipping. The assay results are

not capped as they are not considered as outliers at this stage and results are reproducible;

4. The geological interpretation of the mineralized zones is based on lithology and the mineralized

intervals intersected by drill holes. The use of the borehole inspection camera provided a

valuable geometric characterization of the mineralized intervals;

5. The mineral resource presented here was estimated with a block size of 1mE x 1mN x 1mZ;

6. The blocks were interpolated from equal length composites of 0.5m calculated from the

mineralized intervals;

7. The minimum horizontal width of the mineralized envelopes includes dilution and is 1.3m;

8. The mineral estimation was completed using the inverse distance to the square methodology

utilizing two passes. For each pass, search ellipsoids followed the geological interpretation

trends were used;

9. The mineral resources have been classified under the guidelines of the CIM Standards on

Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing

Committee on Reserve Definitions in 2019 and adopted by CIM Council (2020), and procedures

for classifying the reported mineral resources were undertaken within the context of the

Canadian Securities Administrators NI 43-101;

10. To convert volume to tonnage a specific gravity of 3.4 tonnes per cubic metre was used.

Results are presented insitu without mining dilution;

11. This mineral resource estimate is dated May 28, 2020. Tonnages and AgEq oz in the table

above are rounded to nearest hundred. Numbers may not total due to rounding;

12. The table below shows the commodity prices and the formula for AgEq calculation:

Table showing the commodity prices and the formula for AgEq calculation (CNW Group/Canada

Silver Cobalt Works Inc.)

13. Additional details will be provided in the Technical Report.

Figure 1: The location of the mineralized envelopes. (CNW Group/Canada Silver Cobalt Works Inc.)

As part of the resource estimation process, the company and GoldMinds compiled, verified and

modelled all technical information available from the Castle East Project. The 3D geological models

were built for sub-vertical structures. The mineralized envelopes were created using the last

diamond drill holes (CS-19-08W1 to W4; CS-19-20, CS-19-21; CS-20-22 and CS-20-23) and the

historical hole CA1108. A total of four mineralized envelopes were created by connecting the defined

mineralized prisms on the sections with a minimum horizontal width of 1.3m. A fixed density of 3.4

t/m3 was used. This density reflects the typical mineralized interval composed mainly of diabase.

The geological and mineralization wireframes were constructed using Genesis©, a modelling and

mineral estimation software.

The maximum depth of the mineralized envelopes is around Z =

-73 m

(around 490 metres from the

surface). The envelopes are extended from around

350m

490m

from the surface. A total of four

block models were created. The block size (1mE × 1mN × 1mZ) has been defined to respect the

geometry of the envelopes.

Search ellipsoids were used for the grade estimation and follow the geological interpretation trends.

Block grades were interpolated from the composites (

0.5m

length) within the envelopes in two

passes using the inverse distance to the square methodology and the assays results are not

capped.

For the first pass, the number of composites was limited to twelve (12) with a minimum of three (3)

with a maximum of two (2) composites from the same hole. For the second pass, the number of

composites was limited to twelve (12) with a minimum of two (2).

A cut-off grade of

$125 USD

(258 g/t AgEq) was applied for these underground mineral resources.

Table 2:

The price used for the calculation of AgEq

Element

[oz]

[ton]

USD

$15

$30,000

$5,150

$12,327

$1,650

$1,925

A Technical Report with respect to the present mineral resource estimate disclosed today will be

filed within 45 days in accordance with NI 43-101. The report will also present more details on the

project and findings. The company will continue to advance, explore and de-risk the project with

further engineering (metallurgical, mining) and environmental study & social community relations with

locals and First Nations.

Table 3:

Significant Robinson Zone Drill Results – Silver/Cobalt Values

CCW Castle East Robinson Zone Significant Drill Intercepts (Core Intervals)

Hole

From

[m]

Length

[m]

[g/t]

[oz/ton]

[%]

CA1108

563.54

566.63

3.09

6,476.29

188.92

0.13

Including

564.34

564.79

0.45

40,944.00

1,194.40

0.91

CS-19-08W1

558.00

560.50

2.50

12,738.55

371.60

0.09

Including

559.40

560.00

0.60

50,583.39

1,475.59

0.30

CS-19-08W2

545.00

549.00

4.00

7,259.50

211.77

0.20

Including

547.20

547.50

0.30

70,380.15

2,053.10

2.61

CS-19-08W3

568.00

569.00

1.00

56.40

1.65

1.35

CS-20-22

563.90

564.50

0.60

4,971.39

145.02

0.39

Including

564.15

564.50

0.35

8,338.41

243.24

0.66

CS-20-22

407.00

419.00

12.00

29.05

0.85

0.00

Including

409.45

409.85

0.40

368.70

10.76

0.01

Notes:

1. True widths are estimated to be 50% to 70% of the reported downhole intercepts;

. CS-20-22 interval at 563.90 m to 564.50 m was not used in the Inferred resource calculation.

Table 4:

Drill Hole Coordinates Table

Hole Name

Easting

Northing

Elevation

Azimuth

Dip

Start Depth

End Depth

Length

CS-19-08W1

520914

5279950

415

134

-50

495.03

611.00

115.97

CS-19-08W2

520914

5279950

415

134

-50

444.30

602.00

157.70

CS-19-08W3

520914

5279950

415

134

-50

425.00

620.00

195.00

CS-19-08W4

520914

5279950

415

134

-50

371.40

629.00

257.60

CS-19-20

521004

5279544

415

-70

0.00

701.00

CS-19-21

521004

5279544

415

-70

0.00

755.00

CS-20-22

521004

5279544

415

36.8

-67

0.00

695.00

CS-20-23

520902

5279983.93

415

133.1

-51.3

0.00

884.00

Quality Control/Assurance

During the 2019 and early 2020 drilling program, assay samples were taken from the NQ core.

Samples were collected using a 0.3-metre minimum length, one-meter maximum length. Drill core

recovery averaged 95%. A strict QA/QC program was applied to all samples, which includes

insertion of mineralized standards and blank samples for each batch of 20 samples. The drill core

was split with one half of the core placed in a plastic bag with the sample tag and sealed, while the

second half was returned to the core box for storage on site. Core samples were sent for assaying

to Swastika Laboratories Ltd. in

Swastika, Ontario

, and ALS laboratory at

Rouyn-Noranda, QC

. For

the high-grade intercepts, only ¼ of the core has been sent to laboratory for assaying.

Qualified Person

The technical information in this news release was prepared under the supervision of Mr.

Merouane

Rachidi

, Ph.D., P.Geo., (PGO, OGQ, APEGNB and AIPG) of GoldMinds Geoservices, independent

qualified person in accordance with National Instrument 43-101.

About Canada Silver Cobalt Works Inc.

Canada Silver Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property

with strong exploration upside in the prolific past producing

Gowganda

high-grade Silver Camp of

Northern Ontario

. With underground access at Castle, a pilot plant to produce cobalt-rich gravity

concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the

creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations,

Canada Silver Cobalt is strategically positioned to become a vertically integrated North American

leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market

cycle.

"Frank J. Basa"

Frank J. Basa

, P. Eng.

President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release. This news release may contain forward-looking statements including but not limited to

comments regarding the timing and content of upcoming work programs, geological interpretations,

receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements

address future events and conditions and therefore, involve inherent risks and uncertainties. Actual

results may differ materially from those currently anticipated in such statements.

SOURCE

Canada Silver Cobalt Works Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/May2020/28/c4532.html

%SEDAR: 00022378E

For further information:

Frank J. Basa, P.Eng., President and CEO, 1-416-625-2342; Marc

Bamber, Director, [email protected], +44-7725-960939

CO: Canada Silver Cobalt Works Inc.

CNW 07:00e 28-MAY-20

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