Page 61 C A L S G Y R O S a f e q u i c k a n d r e l i a b l e m a p p i n g f o r i n a c c e s s i b l e u n d e r g r o u n d c a v i t i e s c a r l s o n s w c o m fowsheet to assess its suitability as feedstock T ests simulated the existing circuits to determine the ability to produce a cobalt sulfate heptahydrate cobalt sulfate a critical component of lithiumion batteries In addition to cobalt sulphate pro duction the cobalt hydroxide feed tested in this program had head grades in excess of 20 cobalt By contrast many other sources of cobalt hydroxide have head grades approaching 30 cobalt providing yet another opportunity for higher production Furthermore the cobalt hydrox ide used in these tests is currently sold at approximately 60 of the prevailing cobalt price which could ofer good margin opportunities based on the fndings of the previ ously released restart study W e are encouraged by the inter est shown in this strategic asset by cobalt miners and EV companies alike and intend to move swiftly to secure longterm feed supply and oftake contracts said T rent Mell the First Cobalt President and CEO W e are currently exploring a number of nondilutive fnancing options for the capital requirements to restart the facility W e intend to have further updates on all aspects of the project over the next quarter Cobalt Refnery Produces High Grades as we complete these discussions First Cobalt is a Canadianbased pureplay cobalt company and own er of the only permitted primary co balt refnery in North America The Company is studying a restart of the First Cobalt Refnery in Ontario Canada which could produce 2000 tonnes of cobalt sulfate or metallic cobalt per year First Cobalt s main cobalt project is the Iron Creek Co balt Project in Idaho USA which has Inferred mineral resources of 269 million tonnes grading 01 1 cobalt equivalent or an alternative undergroundonly scenario of 44 million tonnes grading 03 cobalt equivalent