Assays Show Massive Silver Grades as Discovery Builds at Castle East

Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Cobalt”) is pleased to announce that partial assays from a visually strongly mineralized 4.65-meter core interval in the first wedge hole at the Robinson Zone Discovery at Castle East (refer to Dec. 12, 2019 news release) include 50,583.29 g/t silver (1,476 oz/ton) from a 0.60-meter sample in addition to cobalt, nickel and copper, and 20,741 g/t silver (605 oz/ton) over 1.5 meters.

Assays are still pending for 19 out of 22 samples from the first wedge hole as well as 89 samples from the other three wedge holes. The drill program, applying technology that was never previously used at the Castle Property, is now being carried out with deep holes from surface designed to extend this vein shoot and intersect multiple shoots in what increasingly appears to be a geologically very fertile area 600 meters to 1,900 meters east of three robust past producers.

Highlights

• Significantly, CS-19-08-W01 not only confirmed the grassroots discovery of a classic Northern Ontario Silver-Cobalt District-style vein shoot in this heavily under-explored part of the Nipissing diabase, but this first wedge hole has cut into an even richer and much wider part of the vein 10 meters above and west of the original discovery intercept (CA-11-08);
• CS-19-08-WO1 returned 50,583.29 g/t silver (1,476 oz/ton), 0.30% cobalt, 0.71% nickel and 0.21% copper over 0.60 meters, higher in silver grade (by 9,639 grams or 282 oz/ton) than the best intercept in CA-11-08 (refer to Dec. 4, 2019 news release). In addition, the vein within the 0.60-meter interval in CS-19-08-W01 has a true width (20 cm) three to four times greater than the apparent same vein in CA-11-08. This is highly encouraging in terms of the potential strength, richness and extent of this NW-SE-striking and SW dipping vein initially intersected in CA-11-08 at a vertical depth of approximately 430 meters;
• The second and third samples, outside the vein in CS-19-08-W01, returned 1,375 g/t Ag and 422 g/t over 0.40 meters and 0.50 meters, respectively, in silver-filled fractures, providing an average of 20,741 g/t (605 oz/ton) over the first 1.5 meters of core length assayed. Numbers are pending for the remaining 3.1 meters of the 4.65-meter interval in addition to other parts of the hole;
• Grades and vein widths reflect what was mined historically in the Gowganda Camp.

Matt Halliday, Canada Cobalt’s newly-appointed VP-Exploration, stated:

“The four wedge holes plus the first deep hole that recently started from surface confirm intense veining at this exciting new grassroots discovery in an historically productive camp just 75 kilometers from Kirkland Lake.

“Exploration is targeting one or more deposits at Castle East in the Nipissing diabase, with excellent gold potential in the Archean rocks above and below the diabase. We have assembled a powerful team equipped with state-of-the-art technology including GoldMinds Geoservices’ custom-built downhole camera to unlock the full value of this prolific past producing camp for Canada Cobalt,”

Halliday concluded.

Following a short Christmas-New Year’s break for drill crews, drilling at the Robinson Zone Discovery will resume during the first week of January.

Initial assay results from underground drilling at the Castle mine are expected to be released during the week of December 30 followed by another important update from Castle East.

Canada Cobalt management extends best wishes to shareholders for a Merry Christmas and happy holidays.

Maps/Images

Included in this news release (see below) is an updated vertical section for the Castle East high-grade silver discovery. Refer to the Canada Cobalt web site at CanadaCobaltWorks.com for additional maps, images and video that will be posted during this drill program.

Quality Control/Assurance

The drill program and sampling protocol are being managed by geologists from GoldMinds Geoservices. Holes CS-19-08-W01 to W04 were wedges drilled off the historic CA-11-08 hole. The original hole was re-opened, a modern gyro survey was completed to confirm the location of the hole at depth and then the wedges were drilled from different depths using NQ diameter drill core. Samples were collected using a 0.3-meter minimum length, one-meter maximum length. Drill core recovery averaged 95%. Two quality control samples (blank and standards) were inserted into each batch of 20 samples. The drill core was sawn with one half of the sawn 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. For the high-grade intercepts, only one-quarter of the core has been sent for assaying to Swastika Laboratories in Swastika, Ontario. Where silver was visually and significantly present, a Pulp-Metallic analysis was requested for the silver and gold assays where the entire sample will be dried, weighed and crushed over 95% then fully pulverized and passed through 200-mesh screen to create a plus 200-mesh fraction (metallics) and a minus 200-mesh fraction (pulp). The -200 mesh fraction (fines) will be run using geochemical analysis with AA finish for Ag, Au, Cu, Ni, and Co. The entire +200 mesh (coarse) fraction will be analyzed using gravimetric processes (fire assay) for both Ag and Au to provide a weighted average assay for the entire sample.

Swastika Laboratories is an ISO certified lab independent of Canada Cobalt. Qualified Person

The technical information in this news release was prepared under the supervision of Mr. Merouane Rachidi, Ph.D., P.Geo., (APGO, APEGNB and OGQ) of GoldMinds Geoservices, a qualified person in accordance with National Instrument 43-101.

About Canada Cobalt Works Inc.

Canada 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 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

For further information, contact:

Frank J. Basa, P.Eng., Marc Bamber,

President and CEO Director

1-416-625-2342 [email protected]

+44-7725-960939

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.