Progress Update on Bench-Scale Pilot Plant

Canada Silver Cobalt is pleased to release preliminary bench-scale results on flotation tests on the Beaver Tailings being done at SGS Lakefield, Ontario, Canada.

Highlights

• First stage, flotation test rougher concentrate grades are 2,559 grams per tonne silver, 0.28 percent cobalt and 0.072 percent nickel.
• Concentration ratios for the first stage flotation test rougher concentrate are 23.5 for silver, 14 for cobalt, and 5.5 for nickel.
• Excellent preliminary, first stage flotation test rougher concentrate recoveries are 61 percent for silver, 43 percent for cobalt and 21 percent for nickel.

The bench-scale test work has yielded excellent results in producing a first concentrate for Re-2Ox processing into a direct end-product to EV battery manufacturing. The initial test work was undertaken on 50 kilograms of tailings from drill core samples of the Beaver Tailings. Further test work will be undertaken for optimization of grade and recoveries.

The overall test program is expected to take six months from bench-scale to pilot plant for the Stage I program. The program is designed to produce concentrates from hard rock mineralized material from the Castle Mine and from tailings from the Castle and Beaver mines, and to process spent Li-ion, Nickel Cadmium, Nickel Hydride batteries using the Re-2Ox process. Upon completion of the Stage I program, an assessment will be undertaken on the direction the company will undertake for further testing and pilot plant studies.

Frank J. Basa, P.Eng., CEO, commented,

“The core of the ability to meet EV battery manufacturers’ needs, is a metallurgical process that can treat primary feeds and secondary feeds equally well into final end-user products. As the company has already produced cobalt sulfate from hard rock mineralized primary feed from the Castle mine it is now working on using the Re-2Ox process on tailings from the Cobalt camp and secondary feeds from spent batteries into final end-user products.”

In addition to the process chemistry, the Company has designed a reactor that acts as an accumulator for low- metal concentrations in the various primary and secondary feeds to improve process economics.

Canada Silver Cobalt will use a purely hydrometallurgical approach by employing Re-2Ox for selective leaching to enhance process recovery of metals. The spent batteries will first be mechanically processed to recover the metal casing and plastics, followed by hydrometallurgical treatment to produce direct feed to the EV battery manufacturers. Canada Silver Cobalt Works will be the first in North America to use this one- step method.