Canada Silver Cobalt to distribute shares of Subsidiary to Shareholders

Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTCQB: CCWOF) (FSE: 4T9B) (the "Company" or "Canada Silver Cobalt") announces that it intends to distribute an aggregate of approximately 11.75 million shares of its subsidiary Coniagas Battery Metals Inc. ("Coniagas") to the shareholders of Canada Silver Cobalt by way of dividend. Each of the shares will be accompanied by half of a common share purchase warrant. Each full warrant will give the holder the right to acquire one additional share of Coniagas at a price of $0.40 for two years. Canada Silver Cobalt will acquire the shares as consideration for the impending transfer to Coniagas of the Graal property in the Saguenay-Lac-St-Jean region of Québec. The Company has filed a technical report with respect to the Graal property on SEDAR, prepared in conformity with National Instrument 43-101, Standards of Disclosure for Mineral Projects.

There are currently 202,998,316 common shares of Canada Silver Cobalt issued and outstanding. The proposed dividend distribution of approximately 11.75 million shares of Coniagas will be made on the basis of one Coniagas share and half-warrant for every 17.27 shares of Canada Silver Cobalt on a date to be selected as the dividend record date. The final ratio for the dividend distribution may change as a result of changes to the number of issued and outstanding common shares of the Company between the date of this news release and the dividend record date. Coniagas intends to apply for listing on a Canadian stock exchange and to file a non-offering prospectus with the Canadian provincial securities commissions to qualify the distribution of the Coniagas shares and warrants to the shareholders of the Company.

Coniagas also intends to raise approximately $1,250,000 by way of private placement to "accredited investors" and others by issuing up to 5,000,000 shares at a price of $0.25 per share. Each share will be accompanied by one warrant, which may be exercised for two years at a price of $0.40 per share. Coniagas intends to use the proceeds from the proposed private placement for exploration on the Graal property and for working capital.

It is expected that after the proposed dividend distribution and private placement, Canada Silver Cobalt will hold approximately 36.7% of Coniagas' outstanding shares plus warrants as will the shareholders of Canada Silver Cobalt in the aggregate. Investors in the proposed private placement will hold an aggregate of approximately 15.6% of Coniagas' outstanding shares plus warrants, with the balance of approximately 11% of the Coniagas shares to be held by its directors and officers and by a third-party vendor of certain of the claims comprising the Graal property.

The Company will provide updates on the proposed distribution of the Coniagas shares and warrants to the shareholders of the Company, including the dividend record date and dividend ratio, and on the proposed listing of Coniagas on a Canadian stock exchange. The proposed distribution by the Company of the Coniagas shares and warrants and the private placement by Coniagas are subject to regulatory approval, including that of the TSX Venture Exchange.

Frank J. Basa, P.Eng., CEO of Canada Silver Cobalt, who is to become Coniagas founding CEO and President, stated, "Coniagas will establish itself as a provider of MAAS (Metal as a Service) to the global EV battery market. Early exploration of the spinout Graal property, at 6,100 hectares in Quebec, has already yielded significant results in nickel, copper, and cobalt over a 6-kilometer strike length. Historical drilling had previously indicated a potential target of near-surface tonnage of 30 - 60 million tonnes with a grade range of 0.60 - 0.80% nickel, 0.30 - 0.50% copper and 0.10 - 0.15% cobalt in the MHY section (see Company press release of April 4, 2022). This estimation does not take into account any potential at depth and excludes newly discovered mineralization. Please note that the quantity and grade of this potential target calculation is conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential target primary evaluation is a calculation of the length multiplied by the thickness of intersection by the density of 3.3 to 4.0 t/m3 multiplied by the depth extension of 150 to 250m based on historical drill holes.

"Coniagas is well-positioned to deliver ongoing results in the coming months at the Graal property in Quebec."

Frank J. Basa further added, "Canada Silver Cobalt will become a focused, high-grade silver and gold exploration company in the historic Cobalt camp and on the Cadillac-Larder-Lake Break where millions of ounces of silver and gold have been mined over a hundred-year time frame. The Castle Property, at 7,800 hectares, includes the Castle Silver Mine that produced 9,000,000 ounces of the 70,000,000 ounces of silver produced in the Gowganda mining district of the Cobalt camp. The Eby-Otto property, at nearly 1,200 hectares, is located next to the Macassa Gold Mine which has produced 24,000,000 million ounces of gold and is currently operated by Agnico-Eagle Mines."

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