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Cobalt Power Group Inc. Closes Non-Brokered Private Placement with Hochschild Mining Holdings Limited and Establishes an Alliance

Financings Partnerships & JV

Cobalt Power Group Inc. Closes Non-Brokered Private Placement with

Hochschild Mining Holdings Limited and Establishes an Alliance

/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE U NITED STATES OR OVER UNITED

STATES NEWSWIRES./

TSX.V: CPO

VANCOUVER, Aug. 31, 2017 /CNW/ - Cobalt Power Group Inc. (the "Company") (TSX.V: CPO, OTC

Pink: CBBWF) is pleased to announce that it has closed the private placement announced on August 21,

2017 as a result of which CPO has issued 4,886,538 units of CPO at a price of CDN$0.13 per unit to

Hochschild Mining Holdings Limited ("Hochschild"). Each unit consists of one common share and one

half of one non-transferrable share purchase warrant, with each one warrant being exercisable to

purchase one additional common share of CPO over a period of two years from closing at a price of

CDN$0.30 per share.

The common shares forming part of the unit and any shares that might be acquired on the exercise of

warrants attached to the unit have been or will be issued subject to a four month hold period expiring

December 26, 2017.

By virtue of the private placement Hochschild has received the following additional rights:

1. the right to option and joint venture one of CPO 's properties to be selected by Hochschild in

its sole discretion on the terms set out in CPO's news release of August 21, 2017.

2. the right to appoint a director to the Board of CPO following the closing and as long as

Hochschild holds a minimum of 5% of the issued and outstanding shares of CPO; and

3. the right to top up its shareholder holdings in CPO in order to maintain its percentage

interest in the outstanding share capital of CPO. The exercise of the top up right is optional

and may be exercised through further private placem ents to be made at a price equal to the

average 20 day volume weighted market price of CPO' s common shares as traded on the

TSX Venture Exchange subject to the application of the minimum pricing policies of the TSX

Venture Exchange.

The placement was closed after receipt of TSX Venture Exchange conditional approval.

About Hochschild Mining Holdings Limited

Hochschild Mining Holdings Limited is a wholly owne d subsidiary of Hochschild Mining plc- both English

companies. Hochschild Mining plc is based in Lima, Peru and currently trades on the London Stock

Exchange. Hochschild is a well-established senior mining company with over 60 years operating

experience in the Americas. It currently operates four underground mines focused on the production of

precious metals, of which three are located in Peru and one in Argentina.

About Cobalt Power Group Inc.

Cobalt Power Group Inc. is a publicly traded Canadian exploration company listed on the TSX-Venture

Exchange and U.S. Pink Sheets (TSX-V: CPO, OTC Pink : CBBWF) focused on cobalt exploration and

development.

The Company has made a series of strategic property acquisitions over the past year, seeking cobalt

mineralization near Cobalt, Ontario - a region with a long history of silver and associated cobalt

production. Property holdings total 863.6 hectares (2134 acres) in contiguous and strategic claim bloc ks.

There are several historic mining operations on the properties that are potentially accessible, includ ing

the Smith Cobalt shaft and its underground workings.

Chris M. Healey, P. Geo, a Director of Cobalt Power Group is the qualified person responsible for the

technical content of this release, and consents to its dissemination.

On behalf of the Board of Directors

______________________________

Dr. Andreas Rompel, President and CEO

Cobalt Power Group Inc.

www.cobaltpowergroup.com

We seek safe harbor.

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

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

release.

Forward Looking Information

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or

accuracy of the content of this News Release. WARNI NG: The Company relies on litigation protection for

`forward looking" statements. Actual results could differ materially from those described in the news

release as a result of numerous factors, some of which are outside the control of the Company. This

news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in

the United States. The securities have not been and will not be registered under the United States

Securities Act of 1933, as amended (the "U.S. Securities Act') or any state securities laws and may not be

offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securitie s Act

and applicable state securities laws or an exemption from such registration is available.

Cautionary Statement on Forward Looking Statement

Certain information contained in this news release, including information as to our strategy, projects,

plans or future financial or operating performance and other statements that express management's

expectations or estimates of future performance, constitute "forward looking statements". Actual results

may differ materially from those indicated by such statements. All statements, other than historical f act,

included herein, are forward-looking statements that involve various risks and uncertainties. There ca n be

no assurance that such statements will prove to be accurate and actual results and future events could

differ materially from those anticipated in such statements.

In connection with the forward-looking information contained in this news release, CPO has made

numerous assumptions. While CPO considers these ass umptions to be reasonable, these assumptions

are inherently subject to significant uncertainties and contingencies. Additionally, there are known a nd

unknown risk factors which could cause CPO's actual results, performance or achievements to be

materially different from any future results, performance or achievements expressed or implied by the

forward-looking information contained herein.

A more complete discussion of the risks and uncertainties facing CPO is disclosed in CPO's continuous

disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking

information herein is qualified in its entirety by this cautionary statement, and CPO disclaims any

obligation to revise or update any such forward-looking information or to publicly announce the result of

any revisions to any of the forward-looking informa tion contained herein to reflect future results, events or

developments, except as required by law.

SOURCE Cobalt Power Group Inc

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/August20 17/31/c2099.html

%SEDAR: 00029608E

For further information: please contact Daniel Caamano, VP Corporate Commun ications or Judy A.

McCall, Corporate Secretary at: 604.620.7737. The c ompany's profile may also be viewed on

www.sedar.com.

CO: Cobalt Power Group Inc

CNW 06:00e 31-AUG-17