Amarc Resources

Cobalt 27 Announces Closing of Bought Deal Financing

TORONTO, ON--(Marketwired - December 19, 2017) - Cobalt 27 Capital Corp. (the "Company" or "Cobalt 27") (TSX VENTURE: KBLT) (FRANKFURT: 27O) is pleased to announce it has closed its previously announced bought deal offering, pursuant to which a total of 8,100,000 common shares ("Common Shares") of the Company were sold at a price of $10.50 per Common Share (the "Issue Price") for aggregate gross proceeds of approximately $85 million (the "Offering"). The Offering was underwritten by a syndicate of underwriters co-led by TD Securities Inc. and Scotiabank and including BMO Capital Markets, Haywood Securities Inc., Canaccord Genuity Corp., RBC Dominion Securities Inc., Cormark Securities Inc., National Bank Financial Inc., Desjardins Securities Inc., Eight Capital and GMP Securities L.P. (collectively, the "Underwriters").

Cobalt 27 has granted the Underwriters an over-allotment option, exercisable in whole or in part at any time up to 30 days following December 19, 2017, to purchase up to an additional 1,215,000 Common Shares at the Issue Price.

The net proceeds of the Offering will be used in connection with the acquisition by the Company of an aggregate of 800 metric tonnes of physical cobalt pursuant to certain option agreements executed by the Company. In addition, Cobalt 27 is pleased to announce that it entered into additional agreements to purchase an additional 22 metric tonnes of physical cobalt for a total purchase price of approximately US$1.7 million (approximately $2.2 million) payable in Common Shares at the Issue Price. Taken together, since December 7, 2017, Cobalt 27 has entered into agreements to acquire an aggregate of 822 metric tonnes of physical cobalt at an average purchase price of US$36.28 per pound of cobalt.

The Common Shares issued under the Offering were issued pursuant to a prospectus supplement dated December 11, 2017 that was filed with securities regulatory authorities in all provinces and territories of Canada (excluding Quebec) under the Company's base shelf prospectus dated October 17, 2017, and also offered by way of private placement into the United States pursuant to Rule 144A and other jurisdictions where exempt from any prospectus, registration or other similar requirements.

The Common Shares of the Company have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful.

About Cobalt 27 Capital Corp.

Cobalt 27 Capital Corp. is a minerals company that offers pure-play exposure to cobalt, an integral element in key technologies of the electric vehicle and battery energy storage markets. The Company owns over 2,160 Mt of physical cobalt and manages a portfolio of 7 cobalt royalties. The Company intends to continue investing in a cobalt-focused portfolio of streams, royalties and direct interests in mineral properties containing cobalt, while potentially adding to its cobalt physical holdings when opportunities arise.

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