Global Cobalt Performs Strategic Review of Properties and Projects

Global Cobalt Corp. (TSXV:GCO) directors have created an ad hoc committee for the strategic review of its existing properties and projects, business plan, development strategy and capital structure to ensure that shareholder value is protected. The Company is considering strategic and financial alternatives such as a settlement offer with Imperial Mining Holding Limited for the option agreement and loan agreement; an addition to portfolio of cobalt or strategic metals projects; and creating a new company focused on cobalt and other energy related metals. Global Cobalt cautions shareholders that there are no assurances or guarantees that discussions will result in any agreement.

As quoted in the press release:

GLOBAL COBALT CORP. (TSXV:GCO, OTCBB:GLBCF, FRA:3P0) (“Global Cobalt” and/or the “Company”) is pleased to announce that it is currently underway on a review of the Company’s business and alternatives in order to protect value for its shareholders.

The strategic review will encompass a careful evaluation of the company’s existing properties and projects, business plan, development strategy and capital structure and will consider various alternatives for the Company.

Strategic and financial alternatives may include, but are not limited to:
1. a settlement offer to the option agreement dated May 27th, 2013 (the “Option Agreement”) and the loan agreement dated July 8th, 2013 (the “Loan Agreement”) between Imperial Mining Holding Limited (“IMHL”) and Global Cobalt,
2. the addition of further cobalt or strategic metal projects,
3. a separation of certain assets of Global Cobalt into two distinct publicly traded companies;
a. maintaining Global Cobalt including the Karakul Cobalt project and the Altai Satellite projects
b. spinning out a new, independent cobalt and other energy related metals focused company with assets including the Werner Lake and Iron Creek projects, and/or
4. a combination of the above.

The Board of Directors has established an ad hoc committee to oversee the strategic review and will then recommend options to shareholders. It is the Management’s current intention not to disclose developments with respect to the strategic review process until the Board of Directors approve a specific action or it otherwise concludes pursuant to legal counsel’s written opinions its review of strategic alternatives and determines that disclosure is necessary or appropriate. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, as to the terms or timing of such a transaction.

The Company also announces discussions remain ongoing with IMHL regarding the Option Agreement and the Loan Agreement between IMHL and GCO with respect to the Karakul project. The Company cautions that there are no assurances or guarantees that discussions will result in any agreement.

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