RESOLUTION MINERALS LTD — Capital/Financing Update 2018

Dec 18, 2018

NORTHERN COBALT STAKES SOUTHERN ALASKAN VANADIUM PROJECT

• Northern Cobalt has staked 48 mineral claims over a substantial vanadium project in south-western Alaska 50km south of Juneau on the coast
• The Company was able to acquire 100% of the project by simply pegging the ground, resulting in a very low-cost acquisition
• Historical samples of magnetite rich rock chips show potential for high grade vanadium with values up to 0.56% V2O5. These values are expected to increase significantly in magnetite concentrates
• All year-round operations are possible for all exploration activities
• Key infrasturcture requirements are already in place
  • o The Snettisham Hydroelectric Power Plant is sited 18 km to the northwest and the main transmission line runs within 2.5 km of the project
  • o The project is located on the coast, adjacent to a deep water channel capable of hosting Panamax and Cape class vessels
• A detailed magnetic survey is planned to be flown by drone technology early in the new year followed by drilling on the main magnetic targets

Alaskan Vanadium Project

Northern Cobalt Limited (ASX: N27) is pleased to announce it has staked 48 mineral claims over the Snettisham Vanadium Project on south-western Alaska. In its global search for a new vanadium project, the company couldn't look past Snettisham due to its potential for large scale and its unique position regarding fundamental infrastructure requirements such as cheap electricity, transport options and proximity to the mining town of Juneau in southern Alaska. The Snettisham Vanadium Project occurs within titaniferous magnetite, concentrated within an Alaskan-style mafic-ultramafic intrusion, extending over 3.8 km along the coast of the Snettisham Peninsula and up to 1.5 km inland.

"Northern Cobalt believes that the fundamentals of the battery metals markets remain strong. Not only is the company placing itself as a potential supplier of cobalt to the electric vehicle markets, it has now acquired a significant vanadium project that gives it exposure to demand for the metal in vanadium flow batteries and the increasing demand for use in high strength steel in the building industry.", Michael Schwarz (MD)

CAPITAL STRUCTURE

Ordinary Shares Issued 50.8 M

Options and rights Listed options 6.3 M @ 20c Unlisted options 12.3 M @ 25c Unlisted rights 2.5 M

Performance Shares Class A 9.6 M Class B 3.6 M

Last Capital Raise 24 April 2018 - SPP $0.6M @ 35c

BOARD

Len Dean - Chair Michael Schwarz - MD Duncan Chessell - NED Andrew Shearer - NED Jarek Kopias - Co Sec

Figure 1. Google Earth image showing the location of N27's vanadium project

Project Location

The Snettisham Vanadium Project occurs in the Juneau Province in south-western Alaska. Juneau is the capital city of Alaska and is located approximately 50 km to the north of the project area. The city has a population of approximately 35,000 people many of whom work in the mining industry, supporting local gold and base metal mines.

Due to the proximity to the ocean, lack of frozen tundra and hilly nature of the terrain, exploration activities can continue all year around supported by barges and helicopters.

As compared to many Alaskan projects, this location has significant advantages from both an ongoing operational point of view immediately and for potential future material movements direct from the project to Cape and Panamax class shipping options via the deep-water channel adjacent to the project.

Exploration Program

Northern Cobalt is in the process of implementing a drone based, low level magnetic survey over the entire Snettisham Project area. Once this data is collected early in the new year, detailed three-dimensional magnetic modelling will be undertaken to identify locations of the highest concentrations of magnetite. Drill targets will be generated based on these models, with the expectation of drilling to commence in the first half of 2019.

Infrastructure

There are several critical infrastructure requirements for processing a vanadium concentrate and exporting it to market. These include:

• Cheap electricity to undertake magnetic separation and operation of grinding facilities.
• Access to bulk material handling and transport facilities to move the concentrate to steel markets in either the US or China.
• Access to an experienced mining workforce to support year-round operations.

The Snettisham Vanadium Project is uniquely situated to take advantage of infrastructure facilities already in place.

• The Snettisham Hydroelectric Power Plant is situated 18 km to the north-west and the main transmission line runs within 2.5 km of the project.
• The project is located on the coast, adjacent to a deep-water channel capable of hosting Panamax and Cape class vessels.
• Juneau, the capital city of Alaska, with a population of 35,000 people, is located approximately 50 km to the north of the project. The population is a mining community supporting gold and base metal mines in the local area.

Figure 2. Location of the Snettisham Vanadium Project in relation to Juneau

Figure 3. Location of the Snettisham Vanadium Project in relation to the Snettisham Hydroelectric Facility

Project Geology

Figure 4. Local geology of the Snettisham Vanadium Project. Northern Cobalt's claim outline is indicated by the blue line. Vanadium bearing magnetite pyroxenite is green.

The body in Port Snettisham is an elliptical intrusion about 3.2 kilometres maximum outcrop that is mainly composed of hornblende-magnetite clinopyroxenite, biotite-magnetite pyroxenite, and hornblende-biotite-magnetite clinopyroxenite. There appear to be numerous metasomatic replacement episodes. The pyroxenite locally grades into diorite. As in several other such bodies in south-eastern Alaska, the magnetite content is locally high enough to be considered as a source of iron, titanium, vanadium, and possibly platinum-group elements.

Most of the claim area is composed of an igneous rock termed pyroxenite. At the northern end near Sentinel Point, the vanadium bearing magnetite pyroxenite is bordered by phyllite and the borders to the south and southwest are composed mostly of diorite. The main vanadium bearing phase is in the form of magnetite as an accessory mineral in the pyroxenite.

Pacific Rim Minerals1 visited the project in November 2010 and documented the following description of magnetite in the pyroxenite; "Massive magnetite is easily located with a simple pencil magnet along the coast by the Port of Snettisham and to the north near Sentinel Point. Moving into the interior from Port Snettisham and up to the 300+ metre elevation, magnetite is easily locatable with a pencil magnet. Outcrops of massive magnetite are well exposed along the coast and in cliffs and ledges that are found in the steeper hill sides along the southeast portions of the claim block".

1 The reference has been sourced from an independent National Instrument 43-101F1 ("NI 43-101F1") compliant Property of Merit Technical Report titled "TECHNICAL REPORT ON THE ARROWSTAR RESOURCES LIMITED PORT SNETTISHAM IRON ORE PROPERTY JUNEAU REGION, ALASKA USA", June 1, 2013.

Exploration history and acquisition of the property

The Snettisham Project has been a focus of magnetite style iron ore exploration since the early 1950's.

• Based on work undertaken from 1950 to 1956, the U.S. Bureau of Mines produced a report titled "Studies of the Snettisham Magnetite Deposit South East Alaska, Bureau of Mines Report of Investigations 5195", United States Department of the Interior, February 1956. In this report they completed a magnetic survey, drilled 11 holes for a total depth of 1,995 metres (in 1953), completed detailed geochemistry and petrographic studies and collected enough samples to beneficiate the iron ore using dry magnetic separation.
• In 1969 Marcona Corporation completed a drilling program and feasibility study for production with Marubeni Corporation, unfortunately no reports from this work have been found.
• In 2011, Arrowstar Resources (Arrowstar) entered into an option agreement with Gulfside Minerals to acquire 100% of the property. Arrowstar undertook a detailed ground magnetic survey, rock chip sampling and Davis Tube Separation studies. A sharp decline in the iron ore price in 2013 led them to relinquish all interest in the project.
• In 2013 Arrowstar commissioned Burton Consulting Limited to undertake a NI43-101 Technical report on the Port Snettisham Iron Ore Property. In this report they detail eight rock chip samples of magnetite bearing pyroxenite sampled from scree and outcrop along the beach. These analytical results were as follows:

Figure 5. Samples were taken at various intervals along the coastline (yellow line) adjacent to the pyroxenite unit at Snettisham.

Sample	Fe3	FeCon	Al2O3	CaO	Cu	K2O	MgO	Mn	Na2O	P	S	SiO2	TiO2	V2O5	LOI
	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
1	8.55	16.58	5.53	16.9	0.007	0.626	12.1	0.147	0.39	0.007	0.009	39.6	2.613	0.158	0.06
5	24.38	40.86	4.85	10.84	0.01	0.028	4.46	0.36	0.15	1.242	0.019	14.48	5.002	0.339	0.00
6	12.07	20.94	4.07	16.25	0.005	0.062	11.71	0.121	0.21	0.003	0.011	35.87	2.42	0.179	0.01
7	8.92	15.55	2.68	9.15	0.003	0.111	22.97	0.15	0.13	0.014	0.018	37.21	1.136	0.087	4.10
8	12.03	21.35	5.51	15.33	0.005	0.522	11.19	0.141	0.21	0.001	0.007	34.22	3.048	0.185	0.06
9	35.87	57.72	5.02	0.83	0.014	0.005	4.72	0.233	0.02	<0.001	0.008	2.31	6.471	0.564	0.00
10	10.25	19.72	6.66	17.42	0.005	0.284	8.24	0.263	0.77	0.668	0.017	34.74	2.956	0.147	0.00
11	7.26	16.12	10.34	15.01	0.013	1.013	9.38	0.19	1.42	0.959	0.252	34.4	2.704	0.124	0.23

Table 1. Analytical results of target rock unit

Sample locations: Samples were taken at various intervals along the traverse indicated in figure 5. Discrete sample locations were not reported. The traverse runs between the points at 572949 mE, 64283321 mN and 570734 mE, 6472038 mN (UTM WGS84, Z8V).

Sample 9 with a V2O5 assay of 0.56% is believed to best represent the high-grade; massive magnetite being targeted by Northern Cobalt in its upcoming exploration program. There are numerous lines of evidence from detailed magnetic surveys and the visual observations of previous explorers to support the possibility of large bodies of massive magnetite within the pyroxenite body.

In a global search for magnetite hosted vanadium occurrences, the Snettisham Vanadium Project stood out as a prime opportunity for Northern Cobalt. As the project was not under any existing mineral claim, the company was able to acquire 100% of the project by simply pegging the ground and the issue of shares described below, resulting in a very low-cost acquisition.

Terms of Agreement to acquire the Project

Northern Cobalt has agreed to a payment of 500,000 fully paid ordinary shares (N27 shares) to Fireant Resources Pty Ltd (or nominee) (Fireant) as consideration for services in introducing the tenure to the Company. The shares are expected to be issued later this week from the Company's existing Listing Rule 7.1 capacity.

As further consideration, Northern Cobalt will pay Fireant 1,000,000 N27 Shares, subject to future shareholder approval, at the earlier of satisfaction of the conditions below in relation to the project or any other related tenure (Project):

• the 3-year anniversary of execution of the agreement whereby N27 has title to the Project; or
• $1,500,000 expenditure on or related to the Project; or
• the disposal of the Project for an amount not less than $3,000,000 within the 3-year anniversary of the agreement; or
• the announcement of a maiden resource estimate in relation to the Project.

Competent Persons Statement

The information in this report that relates to exploration results is based on, and fairly represents, information and supporting documentation compiled by Mr Michael Schwarz who is a member of the Australian Institute of Geoscientists. Mr Michael Schwarz is a full-time employee of Northern Cobalt and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Michael Schwarz consents to the inclusion in the report of the matters based on his information in the form in which it is appears.

For further information please contact: Michael Schwarz Managing Director, Northern Cobalt Ltd M: +61 402 101 790 E: mschwarz@northerncobalt.com.au

Appendix 1. The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of the exploration results for the Snettisham Vanadium Project

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (eg cutchannels, random chips, or specificspecialised industry standardmeasurement tools appropriate to theminerals under investigation, such asdown hole gamma sondes, orhandheld XRF instruments, etc).These examples should not be takenas limiting the broad meaning ofsampling.Include reference to measures takento ensure sample representivity andthe appropriate calibration of anymeasurement tools or systems used.Aspects of the determination ofmineralisation that are Material to thePublic Report.In cases where 'industry standard'work has been done this would berelatively simple (eg 'reversecirculation drilling was used to obtain 1m samples from which 3 kg waspulverised to produce a 30 g chargefor fire assay'). In other cases, moreexplanation may be required, such aswhere there is coarse gold that hasinherent sampling problems. Unusualcommodities or mineralisation types(eg submarine nodules) may warrantdisclosure of detailed information.	Historical DataSampling of rock chip wereundertaken by BCI andArrowstar Resources in 2012.The sampling was focussed onselecting samples of pyroxenitewith varying concentrations ofmagnetite to get an indicationof thechemical composition ofthe various ranges inconcentration.Samples were taken of screeand outcrop along a beachexposure and are notconsidered to be representativeof the entire magnetite bearingpyroxenite.
Drillingtechniques	Drill type (eg core, reverse circulation,open-hole hammer, rotary air blast,auger, Bangka, sonic, etc) and details(eg core diameter, triple or standardtube, depth of diamond tails, facesampling bit or other type, whethercore is oriented and if so, by whatmethod, etc).	Nodrilling reported
Drill samplerecovery	Method of recording and assessingcore and chip sample recoveries andresults assessed.Measures taken to maximise samplerecovery and ensure representative	No drilling reported.

Criteria	JORC Code explanation	Commentary
	nature of the samples.Whether a relationship exists betweensample recovery and grade andwhether sample bias may haveoccurred due to preferential loss/gainof fine/coarse material.
Logging	Whether core and chip samples havebeen geologically and geotechnicallylogged to a level of detail to supportappropriate Mineral Resourceestimation, mining studies andmetallurgical studies.Whether logging is qualitative orquantitative in nature. Core (orcostean, channel, etc) photography.The total length and percentage of therelevant intersections logged.	No drilling reported
Subsamplingtechniquesand samplepreparation	If core, whether cut or sawn andwhether quarter, half or all core taken.If non-core, whether riffled, tubesampled, rotary split, etc. and whethersampled wet or dry.For all sample types, the nature,quality and appropriateness of thesample preparation technique.Quality control procedures adopted forall sub-sampling stages to maximiserepresentivity of samples.Measures taken to ensure that thesampling is representative of the insitu material collected, including forinstance results for fieldduplicate/second-half sampling.Whether sample sizes are appropriateto the grain size of the material beingsampled.	No drilling reported
Quality ofassay dataandlaboratorytests	The nature, quality andappropriateness of the assaying andlaboratory procedures used andwhether the technique is consideredpartial or total.For geophysical tools, spectrometers,handheld XRF instruments, etc, theparameters used in determining theanalysis including instrument makeand model, reading times, calibrationsfactors applied and their derivation,etc.Nature of quality control proceduresadopted (eg standards, blanks,duplicates, external laboratory checks)and whether acceptable levels ofaccuracy (ie lack of bias) and precision	Analytical Laboratory AnalysesThe samples were sent to theVancouver laboratory of InspectorateExploration & Mining Services Ltd.,(a Bureau Veritas Group Company)Metallurgical Division, 11620Horseshoe Way, Richmond, BCCanada V7A 4V5 for analysis usingan Fire assay, ICP, XRF machinesand wet chemistry assay todetermine the Fe2 component

Criteria	JORC Code explanation	Commentary
	have been established.
Verificationof samplingandassaying	The verification of significantintersections by either independent oralternative company personnel.The use of twinned holes.Documentation of primary data, dataentry procedures, data verification,data storage (physical and electronic)protocols.Discuss any adjustment to assay data.	No verification reported
Location ofdata points	Accuracy and quality of surveys usedto locate drill holes (collar and downhole surveys), trenches, mine workingsand other locations used in MineralResource estimation.Specification of the grid system used.Quality and adequacy of topographiccontrol.	No locations reported
Dataspacing anddistribution	Data spacing for reporting ofExploration Results.Whether the data spacing, anddistribution is sufficient to establish thedegree of geological and gradecontinuity appropriate for the MineralResource and Ore Reserve estimationprocedure(s) and classificationsapplied.Whether sample compositing has beenapplied.	No locations reported
Orientationof data inrelation togeologicalstructure	Whether the orientation of samplingachieves unbiased sampling ofpossible structures and the extent towhich this is known, considering thedeposit type.If the relationship between the drillingorientation and the orientation of keymineralised structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial.	Sample relationship to mineralisationand structure is unknown at thisstage.
Samplesecurity	The measures taken to ensure samplesecurity.	No information reported
Audits orreviews	The results of any audits or reviews ofsampling techniques and data.	No audits reported

Section 2 Reporting of Exploration Results

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Mineraltenementand landtenurestatus	Type, reference name/number,location and ownership includingagreements or material issues withthird parties such as joint ventures,partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmental settings.The security of the tenure held at thetime of reporting along with any knownimpediments to obtaining a licence tooperate in the area.	The Snettisham Vanadium Projectconsists of a series of mineral claimsin the State of Alaska (USA)The claims have only recently beenpegged and are currently in goodstanding.The claims overly federal controlledlandadministrated by the Bueau ofLand Management
Explorationdone byotherparties	Acknowledgment and appraisal ofexploration by other.parties.	Based on work undertaken from 1950to 1956, the U.S. Bureau of Minesproduced a report titled "Studies of theSnettisham Magnetite Deposit SouthEast Alaska, Bureau of Mines Reportof Investigations 5195", StatesDepartment of the Interior, February1956". In this report they completed amagnetic survey, drilled 11 holes for atotal depth of 1,995 metres (in 1953),completed detailed geochemistry andpetrographic studies and collectedenough sample to beneficiate the ironore using dry magnetic separation.In 1969 Marcona Corporationcompleted a drilling program andfeasibility study for production withMarubeni Corporation, unfortunatelyno reports from this work have beenfound.In 2011, Arrowstar Resources enteredinto an option agreement withGulfside Minerals to acquire 100% ofthe property. Arrowstar undertook adetailed ground magnetic survey, rockchip sampling and Davis TubeSeparation studies. A sharp decline inthe iron ore price in 2013 led them torelinquish all interest in the project.
Geology	Deposit type, geological setting andstyle of mineralisation.	The body in Port Snettisham is anelliptical intrusion about 3.2 kilometresmaximum outcrop that is mainlycomposed of hornblende-magnetiteclinopyroxenite, biotite-magnetitepyroxenite, and hornblende-biotitemagnetite clinopyroxenite. Thereappears to benumerous metasomaticreplacement episodes. The pyroxenite

Criteria	JORC Code explanation	Commentary
		locally grades into diorite. As inseveral other such bodies in southeastern Alaska, the magnetite contentis locally high enough to beconsidered as a source of iron,titanium, vanadium, and possiblyplatinum-group elements.
Drill holeInformation	A summary of all information materialto the understanding of the explorationresults including a tabulation of thefollowing information for all Materialdrill holes:oeasting and northing of the drill holecollaroelevation or RL (Reduced Level –elevation above sea level in metres)of the drill hole collarodip and azimuth of the holeodown hole length and interceptiondepthohole length.If the exclusion of this information isjustified on the basis that theinformation is not Material and thisexclusion does not detract from theunderstanding of the report, theCompetent Person should clearlyexplain why this is the case.	No drill holes reported
Dataaggregationmethods	In reporting Exploration Results,weighting averaging techniques,maximum and/or minimum gradetruncations (eg cutting of high grades)and cut-off grades are usually Materialand should be stated.Where aggregate interceptsincorporate short lengths of high graderesults and longer lengths of low graderesults, the procedure used for suchaggregation should be stated andsome typical examples of suchaggregations should be shown indetail.The assumptions used for anyreporting of metal equivalent valuesshould be clearly stated.	No drilling results reported
Relationshipbetweenmineralisation widths andinterceptlengths	These relationships are particularlyimportant in the reporting ofExploration Results.If the geometry of the mineralisationwith respect to the drill hole angle isknown, its nature should be reported.If it is not known and only the downhole lengths are reported, there should	No drilling results reported

Criteria	JORC Code explanation	Commentary
	be a clear statement to this effect (eg'down hole length, true width notknown').
Diagrams	Appropriate maps and sections (withscales) and tabulations of interceptsshould be included for any significantdiscovery being reported These shouldinclude, but not be limited to a planview of drill hole collar locations andappropriate sectional views.	See attached release.
Balancedreporting	Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both lowand high grades and/or widths shouldbe practiced to avoid misleadingreporting of Exploration Results.	Allrelevantrepresentative samples ofthe target unit have been reported
Othersubstantiveexplorationdata	Other exploration data, if meaningfuland material, should be reportedincluding (but not limited to): geologicalobservations; geophysical surveyresults; geochemical survey results;bulk samples –size and method oftreatment; metallurgical test results;bulk density, groundwater,geotechnical and rock characteristics;potential deleterious or contaminatingsubstances.	No other relevant data to report.
Further work	The nature and scale of plannedfurther work (eg tests for lateralextensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areasof possible extensions, including themain geological interpretations andfuture drilling areas, provided thisinformation is not commerciallysensitive.	Planned further work detailed in this,arelease.