INNOVATION IN EXPLORATION

Green Swan is a natural resource
issuer targeting cobalt in Ontario.

 

NEW! CLICK HERE TO VIEW PICTURES
FROM THE SITE VISIT JULY 2016

LOCATIONS

Copper Prince

NEW! CLICK HERE TO VIEW PICTURES FROM THE SITE VISIT JULY 2016

Copper Prince is a block of 16 contiguous patented mining claims (260 hectares) in the Sudbury Basin, an area renowned for its world-class polymetallic sulphide ore deposits. They lie within the Huronian Gold Belt, a prolific zone of past gold producers that extends a distance of roughly 120 kilometers. Mining infrastructure, labour and knowledge are easily accessible in this mining-friendly jurisdiction.

Exploration work on Copper Prince has been carried out by various parties since the late 1880’s. Some historic data cannot be found. Green Swan has found two prior NI 43-101 reports on Copper Prince prepared for third parties and filed at SEDAR, which reports summarize the historic work carried out and some of the recent results obtained. These results have not been verified by Green Swan’s Qualified Person.

This report was prepared for and on behalf of third parties, and not under the supervision of Green Swan or its Qualified Persons. It was prepared prior to Green Swan owning the underlying asset. The data may not be relevant to the reader's use and may be out of date. Additional work may be needed to verify the results or opinions set out in this report.

A notable cobaltite-in-quartz zone is described in the September, 2008 technical report as being found in the southeast claims comprising a 30-40cm wide quartz vein on the contact of the Nipissing Diabase with coarse grained cobaltite.

One historic sample from Copper Prince, number A195883, assay by Bell White Laboratories in Haileybury, ON (October 1991), returned 3.26% Cobalt, with 14 g/t Gold. A second sample, number A195885 assayed 2.62% Cobalt (Co) and 0.88% Nickel (Ni). Both samples had traces of copper, silver and PGE.

There are three samples shown in the pictures to the left, each taken from the surface of the target property in May, 2016 by Green Swan’s field team as part of its technical due diligence.

The first picture shows two slices from the same grab sample taken from a historic blasted pit.

In situ the rock appears like a skarn with carbonate (white) and tremolite- actinolite thin blades (light greenish in colour).

The samples on the left in Picture 1 shows one large (> 4cm) cobaltite crystal, compared to typical mm to micron -sized cobaltite grains in the Sudbury Ni-Cu-PGE ores. This sample was cut with a rock saw and for presentation purposes one side was sprayed with a clear-coat lacquer to darken it. Green Swan management has this sample at head office.

The samples on the left in Picture 1 is another slice from that same rock, showing large cm-sized cobaltite crystals. This slice is back from analysis and the results are out. Read about the results here.

Picture 2 shows smaller cobaltite crystals along the rusty rim and the distinctive pinkish erythrite coating, a secondary alteration cobalt containing mineral. Green Swan management also has this sample at head office.

“Our team has been actively searching for a Canadian cobalt property for almost a year, as we believe there will soon be a global cobalt shortage,” said Peter M. Clausi, Green Swan’s CEO. “Cobalt is needed to create lithium ion batteries for handheld devices, power tools, laptops, and electric vehicles. It is estimated that each Model 3 to be sold by Tesla Motors will consume 15 kg of cobalt. Tesla intends to sell 500,000 Model 3’s by 2018, which results in 7,500,000 kg of additional cobalt demand driven only by the Model 3. Combining overall growth in the battery market with falling cobalt production out of the Democratic Republic of Congo should lead to a significant supply gap.”

RYLIEJACK

The Ryliejack tenure is one mining claim covering 108 ha. Ryliejack is entirely contained within the Brucejack Property (Pretium Resources Inc.), close to a regional access road. Ryliejack’s northwestly corner is 6 km from the Brucejack “Valley of the Kings” zone.

Indicated Resources at the Valley of the Kings currently total 4.9 million ounces of gold at an average grade of 17.3 g/t; and 10.4 million ounces of gold in the Inferred Resource Category at an average grade of 25.5 g/t (see Pretium’s April 3rd, 2012 Press Release titled ‘High-Grade Gold Mineral Resource Estimate Completed for Brucejack Project’). Ryliejack sits in an enviable location.

MIKAYLA

Mikayla is a higly prospective property in southeastern BC covering 1144 hectares. It is located in the Okanagan Valley in southeast British Columbia, roughly 15 km south of Xstrata Canada’s Brenda Mine, and close to the Crowrea and Empress properties (Nevada Clean Magnesium Inc. / Goldrea Resources Corp. joint venture). Phase 1 of exploration of Mikayla included an airborne magnetic survey over approximately 209 kilometres, flown at 100 metre line spacing.

The results from that survey are here.

Geneva Lake

Geneva Lake, north of Sudbury, Ontario, consists of four road-accessible claims in the Benny Greenstone Belt in Hess Township. The former Geneva Lake Mine (Pb-Zn-Ag) is located on these claims, which mine produced 80,588 tons of ore with a grade of 3.34% lead and 9.21% zinc from 1941 to 1944 (see OGS report 206, Geology of the Benny Area). Historic data from that period (which data is not NI 43-101 compliant and cannot be relied upon) suggests that high grade base metal mineralization (approximately 44% combined Pb + Zn) may be found there.

A later report on the Geneva Lake Polymetallic Deposit by Constable (1989) describes Geneva Lake’s mineralization as a stratabound massive sulfide deposit that, “… strikes southeasterly, dips south at 45º to 50º and rakes to the southeast at 45º. The sulfide zone is conformable to the stratigraphy and on surface has been traced along a 700 foot strike length. Sulfide widths vary from 2 to 20 feet with an average width of 5 feet”. Sulphide mineralization, having an average combined grade of 13%, was reported to be generally massive with distinct banding parallel to bedding planes in the host strata.

Green Swan has completed Phase 1 of its exploration here, the two main goals of which were to make an initial assessment of the claims, and in particular, of volcanogenic massive sulphide-style, base metal mineralization remaining underground in proximity to the historic underground workings, and to help locate such workings relative to surface. Phase 1 achieved these goals.

The world will experience a gap in the cobalt supply – demand matrix, beginning this year.

Much of the world’s cobalt is produced only as a by-product of copper and nickel mining. This makes it very difficult to ramp up the production of cobalt, especially in an environment like the current one where the price for copper and for nickel has fallen. Experts predict falling cobalt production starting this year.

Making this problem worse is that over half of the world’s cobalt (as a by-product of copper and nickel mining) comes from the Democratic Republic of the Congo (DRC). There are serious ethical concerns associated with mining in this area, similar to blood diamonds in other parts of Africa. Amnesty International is pushing for the imposition of an ethical supply chain on cobalt coming from the DRC, which would further restrain supply by about 10%.

These supply cuts are coming at a time of increased demand.

Electric Vehicles, Aircraft Engines & Renewable Energy

Cobalt is a high strength magnetic metal with a diverse range of important uses in products from rechargeable batteries to aircraft engines, and it is expected to be at the leading edge of the search for alternative and renewable energy systems. This versatile metal has been recognized as strategically important by both the US and European Union has been trading on the London Metal Exchange (LME) since 2010.

Battery demand driving growth

Cobalt is critical for manufacturing high performance rechargeable batteries that are used in portable electronics, electric vehicles and stationary power storage applications. In the mid 1990’s, only 1% of cobalt demand was from its use in rechargeable batteries for electronics. However, the growing importance of lithium-ion and nickel metal hydride batteries in smartphones and other electronic devices contributed to the demand for cobalt in rechargeable batteries surpassing its use in superalloys sector for the first time in 2007. Rechargeable batteries have since been the largest end use of cobalt, accounting for 49% of cobalt demand in 2015.

Battery sector cobalt demand grew by 12% in 2015 and double digit growth is anticipated for the foreseeable future as major economies continue to diversify from carbon-based energy systems and vehicle electrification advances.

Cobalt sulphate is preferred by many battery manufacturers and usually receives a premium price to high grade cobalt metal.

Every Model 3 from Tesla Motors will require roughly 15 kg of cobalt for the lithium ion batteries. Tesla has pre-sold roughly 500,000 Model 3’s. That means just to satisfy the cobalt needs of the Model 3, the world will need to produce another 7,500,000 kilograms of finished-product cobalt, which is almost 8300 tons.

Metallic

Metallic uses include superalloys for the aerospace industry to make power and jet engine turbines, cutting tools and cemented carbides used to machine steel, and electromechanical devices such as magnets, electric motors, generators, transformers and magnetic storage tape and hard disks.

Chemical

Chemical uses include sulphates for manufacturing rechargeable batteries, catalysts for petroleum refining and to manufacture plastics, and as pigments.

Clean air

Clean air uses include oil desulfurization, fuel cells, hybrid vehicles, gas/coal to liquid technologies.

Renewable energy

Renewable energy uses include solar power, wind turbines, geothermal power plants, gas turbines, conversion of biomass to hydrogen and hydrogen storage.

Health

Health uses include it as a key component of Vitamin B12 which is essential for human health and necessary for neurological function, brain function and the formation of blood. Cobalt is also used in prosthetics, cancer treatments and food preservation.

Board and Management

 

Peter M. Clausi,

BA, JD

President, CEO and Director

Mr. Clausi is an experienced investment banker, C-level executive and Ontario lawyer with extensive experience in mining finance, shareholder rights and corporate growth. As CEO of Green Swan Capital Corp, he is overseeing the exploration of Canada’s pre-eminent cobalt property, in the world-famous Sudbury Basin. With GTA Resources in 2016, he helped create an innovative mining finance model to access recent securities regulatory amendments. He is General Counsel of GTA Resources and Mining Inc. (TSXV), an independent director of Baja Mining Corp. (TSXV), and Interim CEO of Eastern Platinum Limited (TMX) after leading a successful proxy battle for control.

 

Brian Crawford,

B. Com., CPA, CA

CFO and Director

Brian has over thirty years experience as a financial officer of private and public corporations. Brian is a chartered professional accountant and is currently chief financial officer and a director of several other Reporting Issuers including GTA Resources and Mining Inc., Falcon Gold Corp. and Tempus Capital Inc., CFO of a private company, and the CEO of a private corporate finance company.

 

Dr. Tom E. McCandless,

B. Com., CPA, CA

Director

Dr. McCandless is an economic geologist with over 30 years of experience in exploration and early stage development of mineral properties. He served as Chief Mineralogist for Ashton Mining of Canada and for Stornoway Diamonds Corporation, and was directly involved in the discovery and assessment of the Renard diamond deposit, soon to be Quebec’s first diamond mine. Dr. McCandless is a member of the Association of Professional Geoscientists and Engineers and as such is a Qualified Person for reporting purposes. He is principal of MCC Geoscience Inc. (North Vancouver. B.C.) and provides advice to international companies including advice on budgets, greenfields and brownfields exploration programs, due diligence, and project audits. He is also Adjunct Professor of Geosciences at the University of Arizona and the University of Alberta. As a Professional Geoscientist (APEGBC) and Qualified Person under NI 43-101, Dr. McCandless will work with the rest of the management team to plan and execute a spring and summer work program.

 

Edward Stringer

Director

Edward has over forty four years of extensive experience in mining and mineral exploration and has held senior management positions in several private and public mining related companies. Edward is currently President and CEO of Colibri Resource Corporation.

Previously Edward has served as a director and Executive Chairman of Garson Gold Corp., as a director and CEO of Garson Resources Ltd., as CEO and a director of Falcon Gold Corp., and as a director of Landdrill International Inc. Edward is a permanent life member of the Prospectors and Developers Association of Canada.

 

JUDY BAKER,

BSc, MBA

Director

Judy has 25 years of experience in capital markets including equity analysis, restructuring, fund management, and mineral exploration and mining company activity. Ms. Baker serves on the board of directors of Nemaska Lithium, Star Gold and Arbitrage Exploration Inc.  Ms. Baker holds an Honours B.Sc. Geological Engineering in Mineral Resources Exploration from Queen’s University (1990) and an M.B.A. from Ivey Business School (1995).

From June 2011 to January 2014, Ms. Baker was the CEO, a director and the founder of Superior Copper where $3.5 M in capital was raised for copper exploration at the Coppercorp Mine Project in Ontario and the Rivière Doré Project in Quebec.  Previous to this, Ms. Baker was a consultant for American Lithium Minerals and was responsible for acquiring the large Borate Hills boron lithium project in Nevada and having Japan Oil (JOGMEC) invest $4 M to advance the 350 M ton project through the pre-feasibility stage.  From September 2007 to June 2009, Ms. Baker was the President, CEO, a director and the founder of Canada Lithium.  Ms. Baker was instrumental in restructuring the prior company debt, raising $8 M in capital and strategically positioning the company in lithium business; including acquiring the Quebec Lithium project and initiating lithium exploration in the Great Basin of the United States.

 

 

CONSULTING GEOLOGIST

 

Scot Halladay,

HBSc., P.Geo.

Scot Halladay, HBSc., P.Geo. is a Professional Geologist and member of the APGO with over 25 years of experience in exploration and mining having worked for major mining companies (Xstrata, Falconbridge, Kidd Creek, First Nickel) in the Sudbury and Timmins Mining Camps (9 underground Mines). As a Mine Geologist at Onaping and Craig Mines (Nickel, Copper, Cobalt PGEs) on deep drilling (>3000m) projects that involved upwards of 6 -10 drills and >50,000m programs. Also, contracted to many junior explores in Canada, Greenland and USA (Gold, Base metals – Ni, Cu, Co, PGE’s, Industrial Minerals – Graphite in Ontario and Quebec, Cement quarries in Pennsylvania, Maryland, Alabama). A senior level team member in discovering and delineating numerous zones and involved with Scoping, Environmental, Pre-Feas, and Feasibility Studies, and then mining of the deposit.

Supervised and managed staff of 10+ persons, some unionized, coinciding with upwards of 30 contractors in Shaft Sinking (TL Project), engineering, governmental agencies along with First Nations dealings and consultations.

 

 

Advisory Board

Green Swan’s Advisory Board advises the Directors and Management from time to time on specialized discrete complex issues.

 

Dr. Stephen Coutts

Dr. Coutts is a 25-year member of the Ontario College of Physicians and Surgeons. He is the Medical Director for three clinics in northeastern Ontario and, as a clinical physician co-ordinator, treats patients with chronic pain and addiction issues.

He graduated from The University of Western Ontario, following which he completed his post graduate training in Victoria, British Columbia. Dr. Coutts practiced Emergency Medicine in the United States for several years before returning to the role of Medical Director.

Further, Dr. Coutts was a registrant with an IIROC member firm for four years. He acts as a lecturer and consultant to major pharmaceutical companies on chronic musculoskeletal pain and novel pain therapies.

 

Mr. Jeffrey Robbins

Mr. Robbins is an attorney and practice head of the Entrepreneurial Services Group at Messerli & Kramer P.A. in Minneapolis, Minnesota. For over 30 years, he has represented entrepreneurs, early-stage investors, high-growth private enterprises, and publicly traded companies.

He is a member of various investor networks, a judge for the annual Minnesota Cup business plan competition and a regular adjunct lecturer at the Carlson School of Management (University of Minnesota). Mr. Robbins was named for 2011 as one of “200 Minnesotans You Should Know” by Twin Cities Business magazine.

NEWS

SITE VISIT AND EXPECTED DRILLING TIMELINE (PDF)

Green Swan Capital - July 14, 2016

Green Swan Capital Corp. (GSW: TSX-V) (“Green Swan”) announces continuation of its exploration on its 100% owned cobalt property in the world famous Sudbury Basin, Ontario including a recent site visit by management. Pictures of the site visit can be viewed at Green Swan’s website at www.greenswancapital.com/site-visit-july-2016.html. READ MORE

 

Green Swan Capital Corp. 4.5% Cobalt, 15 g/t Gold

Market Wired - June 20, 2016

Green Swan Capital Corp. (TSX VENTURE:GSW) ("Green Swan") announces the assay results from its technical due diligence review on its 100% owned Copper Prince property in the world-famous Sudbury Basin, Ontario.

In May, 2016 Green Swan took three solid rock grab samples from pre-1950's blasted rock from one historic pit. In addition, a metre-long chip sample was taken from a trench wall in the southeastern part of the property. READ MORE

 

Green Swan Capital Corp. ANNOUNCES INCREASE IN FLOWTHROUGH FINANCING

Stockhouse - June 15, 2016

Green Swan Capital Corp. (TSXV: GSW) ("Green Swan") announces that due to investor demand it has increased the maximum amount of the previously announced flowthrough financing, to $130,000, priced at $0.095 (nine points five cents) per Flowthrough Unit. Each Flowthrough Unit will comprise of one flowthrough share and one full 12-cent warrant with a 12-month term. This financing is subject to regulatory approval. Finder's fees might be paid with respect to this flowthrough financing and the previously announced hard dollar offering (see the June 14, 2016 press release). READ MORE

 

Green Swan Capital Corp. CLOSES ON SUDBURY BASIN COBALT ASSET AND ANNOUNCES FINANCING

Stockhouse - June 14, 2016

Green Swan Capital Corp. (TSXV: GSW) ("Green Swan") announces that it has closed the previously announced 100% acquisition of the Copper Prince property in Falconbridge Township in the Sudbury Mining Division, Ontario.

Green Swan intends to focus its exploration efforts on the historic cobalt indicators. READ MORE

 

Green Swan Capital Corp. PROVIDES CORPORATE UPDATE ON DIVERSIFICATION

Market Wired - August 29, 2014

Green Swan Capital Corp. (TSX VENTURE:GSW) ("Green Swan") announces an update to its growth and diversification plan previously announced on April 8, 2014. The Ontario Securities Commission (OSC) has requested that Green Swan clarify its activities with respect to its survey of opportunities in the medical marijuana sector. The April 8, 2014 news release contained certain disclosure deficiencies with respect to the risks and uncertainties associated with Green Swan's then proposed plan to invest in medical marijuana opportunities in Canada. Notwithstanding these deficiencies, Green Swan's initial search pursuant to the board's direction has enabled it to eliminate the prospect of any involvement (either by investment or otherwise) in the Canadian medical marijuana sector, including without limitation any investment in a Marijuana for Medical Purpose Regulations licensee/applicant. As a result, Green Swan does not plan to activate the separate corporate division focused on marijuana growers as mentioned in Green Swan's management information circular dated May 5, 2014.. READ MORE

PRESS

COBALT SUPPLY TIGHTENS AS BATTERY DEMAND LOOMS

Benchmark Mineral Intelligence - July 14, 2016

Political tensions amidst the wider slump in global commodity markets, look set to continue the onslaught on cobalt production in the Democratic Republic of Congo (DRC) moving into H2 2016. Cobalt production in the DRC, home to over 60% of the world’s mined output, is estimated to have fallen by over 20% in Q1 2016 in reaction to falling copper prices. READ MORE

 

Trouble Looming for Congo Miners

Jocelyn Aspa - July 7, 2016

Things aren’t looking good in the Democratic Republic of the Congo’s mining industry. In June, the country’s chamber of mines announced the loss of 3,000 direct and at least 10,000 subcontractor jobs. A mining conference in Lubumashi had government officials and mining CEOs rally together to figure out how to save a failed copper mine. So, what exactly is going on in the Congo? Last September, Glencore‘s (LSE:GLEN) Katanga copper mine, which is one of the Congo’s biggest, announced an 18-month suspension. It hasn’t even been a year yet, and analysts are already expecting an extension, according to Reuters. READ MORE

 

ALPHANORTH FUND REVIEW - GREEN SWAN CAPITAL (PDF)

AlphaNorth - June 30, 2016

Fund Review The Fund returned 4.4% in June. In comparison, the TSX Venture index and TSX Total Return index returned 7.7% and 0.3% respectively during the month. The strong gains for the TSX Venture index have been lead primarily by the precious metal sector which has rebounded strongly from very depressed levels. READ MORE

 

Power Up! Dundee's Lithium and Electric Metals Conference Lithium, Graphite, Cobalt and LeaD (PDF)

Dundee Capital Markets - June 28, 2016

Lithium, graphite, cobalt and lead are key components required for the emerging battery boom. Battery grade raw material supply lags demand and prices have started to rise in response, as demonstrated by the recent 47% surge in lithium prices over the last year. This supply/demand imbalance is set to intensify with construction of up to 12 new mega-factories which is forecasted to triple battery manufacturing capacity by 2020. As the supply shortage for raw materials persists, competition between manufacturers to secure supply should intensity. With little new lithium, graphite, cobalt and lead production on the horizon, emerging and near-term developers are well-positioned to benefit. READ MORE

 

Battery-conscious hedge funds buy cobalt metal, look for more

Metalbulletin - June 27, 2016

Hedge funds and other private investors have bought cobalt metal in anticipation of higher prices as a result of expected stronger demand for batteries for electric vehicles, which contain cobalt, physical traders told Metal Bulletin this week. READ MORE

 

Petersen critiques Tesla’s cobalt, lithium and graphite disclosure for EV batteries

InvestorIntel - May 20, 2016

It’s been a fascinating week as one of my readers forwarded copies of a May 12 Commodities Comment from Macquarie Wealth Management that focused on China’s recent efforts to shore up its cobalt supply chains and a May 16 report from Morgan Stanley that focused on expected growth in global demand for lithium, graphite, cobalt, and copper from the electric vehicle (EV) and lithium-ion battery sectors. READ MORE

 

China aggressively acquiring gold, copper and cobalt assets

InvestorIntel - May 16, 2016

China Molybdenum (CMOC) has long earned its reputation as a highly acquisitive company. In 2015, it made its intentions known that it would pump around $2bn into acquiring mining assets outside of China. Traditionally a molybdenum and tungsten producer, CMOC has targeted copper in recent years, paying $820m for Rio Tinto’s Northparkes copper mine in New South Wales in 2013 and bidding for Barrick’s Zadivar mine in 2015. READ MORE

 

Farquharson confirms coming cobalt deficit, outlines Formation’s mine timeline

InvestorIntel - May 5, 2016

Formation Metals Inc. (TSX: FCO | OTCQX: FMETF | FWB: FOQ) ) is a Canadian mineral exploration and mine development company that through its wholly owned subsidiaries has interests in base and precious metals and uranium projects in Canada, United States and Mexico. The company’s primary asset, located in the mining friendly state of Idaho, is the 100% owned, fully-permitted Idaho Cobalt Project which is comprised of the mine and mill near Salmon, Idaho, and the proposed Cobalt Production Facility for refining mine concentrate. The mine site is now prepared to commence underground development contingent on successful conclusion of mine financing. READ MORE

 

John Petersen on the cobalt crisis — and what is wrong with EVs and battery technology

InvestorIntel - April 27, 2016

Lithium-ion battery and battery storage expert John Petersen this year created something of a sensation on InvestorIntel by putting his finger on a critical problem: there is not enough cobalt available to meet the demand from the growing lithium-ion battery industry. The key point is that just 6% of cobalt comes from primary production, the rest coming as a by-product of nickel and copper mining. If those latter mines are mothballed due to low prices, consequently that cobalt by-product disappears. “Without cobalt they can’t make their batteries,” he says. READ MORE

 

Cheap Lithium-ion Batteries for EVs vs. The Cobalt Cliff

InvestorIntel - April 15, 2016

Since early March I’ve written five articles that focus on supply and demand dynamics in the cobalt mining sector and explain why I believe the lithium-ion battery industry is facing a raw materials shortage of epic proportions. Today I’ll drill down into market dynamics within the lithium-ion battery industry and explain why I believe cheap lithium-ion batteries for electric vehicles (EVs) will be the first casualties of the Cobalt Cliff. READ MORE

CONTACT US

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Peter M. Clausi

President, CEO and Director

416.890.1232

pclausi@greenswancapital.com

 

Brian Crawford

Chief Financial Officer and Director

905.691.0697

bcrawford@greenswancapital.com

 

For more information about Green Swan, please email info@greenswancapital.com

 

INNOVATION IN EXPLORATION

Green Swan is a natural resource issuer targeting cobalt in Ontario.

 

NEW! CLICK HERE TO VIEW PICTURES
FROM THE SITE VISIT JULY 2016

LOCATIONS

COPPER PRINCE

NEW! CLICK HERE TO VIEW PICTURES FROM THE SITE VISIT JULY 2016

Copper Prince is a block of 16 contiguous patented mining claims (260 hectares) in the Sudbury Basin, an area renowned for its world-class polymetallic sulphide ore deposits. They lie within the Huronian Gold Belt, a prolific zone of past gold producers that extends a distance of roughly 120 kilometers. Mining infrastructure, labour and knowledge are easily accessible in this mining-friendly jurisdiction.

Exploration work on Copper Prince has been carried out by various parties since the late 1880’s. Some historic data cannot be found. Green Swan has found two prior NI 43-101 reports on Copper Prince prepared for third parties and filed at SEDAR, which reports summarize the historic work carried out and some of the recent results obtained. These results have not been verified by Green Swan’s Qualified Person.

This report was prepared for and on behalf of third parties, and not under the supervision of Green Swan or its Qualified Persons. It was prepared prior to Green Swan owning the underlying asset. The data may not be relevant to the reader's use and may be out of date. Additional work may be needed to verify the results or opinions set out in this report.

A notable cobaltite-in-quartz zone is described in the September, 2008 technical report as being found in the southeast claims comprising a 30-40cm wide quartz vein on the contact of the Nipissing Diabase with coarse grained cobaltite.

One historic sample from Copper Prince, number A195883, assay by Bell White Laboratories in Haileybury, ON (October 1991), returned 3.26% Cobalt, with 14 g/t Gold. A second sample, number A195885 assayed 2.62% Cobalt (Co) and 0.88% Nickel (Ni). Both samples had traces of copper, silver and PGE.

There are three samples shown in the pictures below, each taken from the surface of the target property in May, 2016 by Green Swan’s field team as part of its technical due diligence.

The first picture shows two slices from the same grab sample taken from a historic blasted pit.

In situ the rock appears like a skarn with carbonate (white) and tremolite- actinolite thin blades (light greenish in colour).

The sample below in Picture 1 shows one large (> 4cm) cobaltite crystal, compared to typical mm to micron -sized cobaltite grains in the Sudbury Ni-Cu-PGE ores. This sample was cut with a rock saw and for presentation purposes one side was sprayed with a clear-coat lacquer to darken it. Green Swan management has this sample at head office.

The samples below in Picture 1 is another slice from that same rock, showing large cm-sized cobaltite crystals. This slice is back from analysis and the results are out. Read about the results here.

Picture 2 shows smaller cobaltite crystals along the rusty rim and the distinctive pinkish erythrite coating, a secondary alteration cobalt containing mineral. Green Swan management also has this sample at head office.

“Our team has been actively searching for a Canadian cobalt property for almost a year, as we believe there will soon be a global cobalt shortage,” said Peter M. Clausi, Green Swan’s CEO. “Cobalt is needed to create lithium ion batteries for handheld devices, power tools, laptops, and electric vehicles. It is estimated that each Model 3 to be sold by Tesla Motors will consume 15 kg of cobalt. Tesla intends to sell 500,000 Model 3’s by 2018, which results in 7,500,000 kg of additional cobalt demand driven only by the Model 3. Combining overall growth in the battery market with falling cobalt production out of the Democratic Republic of Congo should lead to a significant supply gap.”

RYLIEJACK

The Ryliejack tenure is one mining claim covering 108 ha. Ryliejack is entirely contained within the Brucejack Property (Pretium Resources Inc.), close to a regional access road. Ryliejack’s northwestly corner is 6 km from the Brucejack “Valley of the Kings” zone.

Indicated Resources at the Valley of the Kings currently total 4.9 million ounces of gold at an average grade of 17.3 g/t; and 10.4 million ounces of gold in the Inferred Resource Category at an average grade of 25.5 g/t (see Pretium’s April 3rd, 2012 Press Release titled ‘High-Grade Gold Mineral Resource Estimate Completed for Brucejack Project’). Ryliejack sits in an enviable location.

MIKAYLA

Mikayla is a higly prospective property in southeastern BC covering 1144 hectares. It is located in the Okanagan Valley in southeast British Columbia, roughly 15 km south of Xstrata Canada’s Brenda Mine, and close to the Crowrea and Empress properties (Nevada Clean Magnesium Inc. / Goldrea Resources Corp. joint venture). Phase 1 of exploration of Mikayla included an airborne magnetic survey over approximately 209 kilometres, flown at 100 metre line spacing.

The results from that survey are here.

GENEVA LAKE

Geneva Lake, north of Sudbury, Ontario, consists of four road-accessible claims in the Benny Greenstone Belt in Hess Township. The former Geneva Lake Mine (Pb-Zn-Ag) is located on these claims, which mine produced 80,588 tons of ore with a grade of 3.34% lead and 9.21% zinc from 1941 to 1944 (see OGS report 206, Geology of the Benny Area). Historic data from that period (which data is not NI 43-101 compliant and cannot be relied upon) suggests that high grade base metal mineralization (approximately 44% combined Pb + Zn) may be found there.

A later report on the Geneva Lake Polymetallic Deposit by Constable (1989) describes Geneva Lake’s mineralization as a stratabound massive sulfide deposit that, “… strikes southeasterly, dips south at 45º to 50º and rakes to the southeast at 45º. The sulfide zone is conformable to the stratigraphy and on surface has been traced along a 700 foot strike length. Sulfide widths vary from 2 to 20 feet with an average width of 5 feet”. Sulphide mineralization, having an average combined grade of 13%, was reported to be generally massive with distinct banding parallel to bedding planes in the host strata.

Green Swan has completed Phase 1 of its exploration here, the two main goals of which were to make an initial assessment of the claims, and in particular, of volcanogenic massive sulphide-style, base metal mineralization remaining underground in proximity to the historic underground workings, and to help locate such workings relative to surface. Phase 1 achieved these goals.

ELECTRIC VEHICLES, AIRCRAFT ENGINES & RENEWABLE ENERGY

Cobalt is a high strength magnetic metal with a diverse range of important uses in products from rechargeable batteries to aircraft engines, and it is expected to be at the leading edge of the search for alternative and renewable energy systems. This versatile metal has been recognized as strategically important by both the US and European Union has been trading on the London Metal Exchange (LME) since 2010.

Accounting for ~65% of global mine production, the Democrat Republic of the Congo is the main source of cobalt with refining primarily based in China. Significant cobalt is also mined from nickel-cobalt laterite deposits, which have higher capital and processing costs relative to sulphide deposits.

BATTERY DEMAND DRIVING GROWTH

Cobalt is critical for manufacturing high performance rechargeable batteries that are used in portable electronics, electric vehicles and stationary power storage applications. In the mid 1990’s, only 1% of cobalt demand was from its use in rechargeable batteries for electronics. However, the growing importance of lithium-ion and nickel metal hydride batteries in smartphones and other electronic devices contributed to the demand for cobalt in rechargeable batteries surpassing its use in superalloys sector for the first time in 2007. Rechargeable batteries have since been the largest end use of cobalt, accounting for 49% of cobalt demand in 2015.

Battery sector cobalt demand grew by 12% in 2015 and double digit growth is anticipated for the foreseeable future as major economies continue to diversify from carbon-based energy systems and vehicle electrification advances.

Cobalt sulphate is preferred by many battery manufacturers and usually receives a premium price to high grade cobalt metal.

METALLIC

Metallic uses include superalloys for the aerospace industry to make power and jet engine turbines, cutting tools and cemented carbides used to machine steel, and electromechanical devices such as magnets, electric motors, generators, transformers and magnetic storage tape and hard disks.

CHEMICAL

Chemical uses include sulphates for manufacturing rechargeable batteries, catalysts for petroleum refining and to manufacture plastics, and as pigments.

CLEAN AIR

Clean air uses include oil desulfurization, fuel cells, hybrid vehicles, gas/coal to liquid technologies.

RENEWABLE ENERGY

Renewable energy uses include solar power, wind turbines, geothermal power plants, gas turbines, conversion of biomass to hydrogen and hydrogen storage.

HEALTH

Health uses include it as a key component of Vitamin B12 which is essential for human health and necessary for neurological function, brain function and the formation of blood. Cobalt is also used in prosthetics, cancer treatments and food preservation.

BOARD AND MANAGEMENT

 

PETER M. CLAUSI,

BA, JD

President, CEO and Director

Mr. Clausi is an experienced investment banker, C-level executive and Ontario lawyer with extensive experience in mining finance, shareholder rights and corporate growth. As CEO of Green Swan Capital Corp, he is overseeing the exploration of Canada’s pre-eminent cobalt property, in the world-famous Sudbury Basin. With GTA Resources in 2016, he helped create an innovative mining finance model to access recent securities regulatory amendments. He is General Counsel of GTA Resources and Mining Inc. (TSXV), an independent director of Baja Mining Corp. (TSXV), and Interim CEO of Eastern Platinum Limited (TMX) after leading a successful proxy battle for control.

 

BRIAN CRAWFORD,

B. COM., CPA, CA

CFO and Director

Brian has over thirty years experience as a financial officer of private and public corporations. Brian is a chartered professional accountant and is currently chief financial officer and a director of several other Reporting Issuers including GTA Resources and Mining Inc., Falcon Gold Corp. and Tempus Capital Inc., CFO of a private company, and the CEO of a private corporate finance company.

 

DR. TOM E. MCCANDLESS,

M.Sc., PhD

Director

Dr. McCandless is an economic geologist with over 30 years of experience in exploration and early stage development of mineral properties. He served as Chief Mineralogist for Ashton Mining of Canada and for Stornoway Diamonds Corporation, and was directly involved in the discovery and assessment of the Renard diamond deposit, soon to be Quebec’s first diamond mine. Dr. McCandless is a member of the Association of Professional Geoscientists and Engineers and as such is a Qualified Person for reporting purposes. He is principal of MCC Geoscience Inc. (North Vancouver. B.C.) and provides advice to international companies including advice on budgets, greenfields and brownfields exploration programs, due diligence, and project audits. He is also Adjunct Professor of Geosciences at the University of Arizona and the University of Alberta. As a Professional Geoscientist (APEGBC) and Qualified Person under NI 43-101, Dr. McCandless will work with the rest of the management team to plan and execute a spring and summer work program.

 

EDWARD STRINGER

Director

Edward has over forty four years of extensive experience in mining and mineral exploration and has held senior management positions in several private and public mining related companies. Edward is currently President and CEO of Colibri Resource Corporation.

Previously Edward has served as a director and Executive Chairman of Garson Gold Corp., as a director and CEO of Garson Resources Ltd., as CEO and a director of Falcon Gold Corp., and as a director of Landdrill International Inc. Edward is a permanent life member of the Prospectors and Developers Association of Canada.

 

JUDY BAKER,

BSC, MBA

Director

Judy has 25 years of experience in capital markets including equity analysis, restructuring, fund management, and mineral exploration and mining company activity. Ms. Baker serves on the board of directors of Nemaska Lithium, Star Gold and Arbitrage Exploration Inc.  Ms. Baker holds an Honours B.Sc. Geological Engineering in Mineral Resources Exploration from Queen’s University (1990) and an M.B.A. from Ivey Business School (1995).

From June 2011 to January 2014, Ms. Baker was the CEO, a director and the founder of Superior Copper where $3.5 M in capital was raised for copper exploration at the Coppercorp Mine Project in Ontario and the Rivière Doré Project in Quebec.  Previous to this, Ms. Baker was a consultant for American Lithium Minerals and was responsible for acquiring the large Borate Hills boron lithium project in Nevada and having Japan Oil (JOGMEC) invest $4 M to advance the 350 M ton project through the pre-feasibility stage.  From September 2007 to June 2009, Ms. Baker was the President, CEO, a director and the founder of Canada Lithium.  Ms. Baker was instrumental in restructuring the prior company debt, raising $8 M in capital and strategically positioning the company in lithium business; including acquiring the Quebec Lithium project and initiating lithium exploration in the Great Basin of the United States.

 

 

CONSULTING GEOLOGIST

 

SCOT HALLADAY,

HBSC., P.GEO.

Scot Halladay, HBSc., P.Geo. is a Professional Geologist and member of the APGO with over 25 years of experience in exploration and mining having worked for major mining companies (Xstrata, Falconbridge, Kidd Creek, First Nickel) in the Sudbury and Timmins Mining Camps (9 underground Mines). As a Mine Geologist at Onaping and Craig Mines (Nickel, Copper, Cobalt PGEs) on deep drilling (>3000m) projects that involved upwards of 6 -10 drills and >50,000m programs. Also, contracted to many junior explores in Canada, Greenland and USA (Gold, Base metals – Ni, Cu, Co, PGE’s, Industrial Minerals – Graphite in Ontario and Quebec, Cement quarries in Pennsylvania, Maryland, Alabama). A senior level team member in discovering and delineating numerous zones and involved with Scoping, Environmental, Pre-Feas, and Feasibility Studies, and then mining of the deposit.

Supervised and managed staff of 10+ persons, some unionized, coinciding with upwards of 30 contractors in Shaft Sinking (TL Project), engineering, governmental agencies along with First Nations dealings and consultations.

 

 

ADVISORY BOARD

Green Swan’s Advisory Board advises the Directors and Management from time to time on specialized discrete complex issues.

 

DR. STEPHEN COUTTS

Dr. Coutts is a 25-year member of the Ontario College of Physicians and Surgeons. He is the Medical Director for three clinics in northeastern Ontario and, as a clinical physician co-ordinator, treats patients with chronic pain and addiction issues.

He graduated from The University of Western Ontario, following which he completed his post graduate training in Victoria, British Columbia. Dr. Coutts practiced Emergency Medicine in the United States for several years before returning to the role of Medical Director.

Further, Dr. Coutts was a registrant with an IIROC member firm for four years. He acts as a lecturer and consultant to major pharmaceutical companies on chronic musculoskeletal pain and novel pain therapies.

 

MR. JEFFREY ROBBINS

Mr. Robbins is an attorney and practice head of the Entrepreneurial Services Group at Messerli & Kramer P.A. in Minneapolis, Minnesota. For over 30 years, he has represented entrepreneurs, early-stage investors, high-growth private enterprises, and publicly traded companies.

He is a member of various investor networks, a judge for the annual Minnesota Cup business plan competition and a regular adjunct lecturer at the Carlson School of Management (University of Minnesota). Mr. Robbins was named for 2011 as one of “200 Minnesotans You Should Know” by Twin Cities Business magazine.

NEWS

SITE VISIT AND EXPECTED DRILLING TIMELINE (PDF)

Green Swan Capital - July 14, 2016

Green Swan Capital Corp. (GSW: TSX-V) (“Green Swan”) announces continuation of its exploration on its 100% owned cobalt property in the world famous Sudbury Basin, Ontario including a recent site visit by management. Pictures of the site visit can be viewed at Green Swan’s website at www.greenswancapital.com/site-visit-july-2016.html. READ MORE

 

Green Swan Capital Corp. 4.5% Cobalt, 15 g/t Gold

Market Wired - June 20, 2016

Green Swan Capital Corp. (TSX VENTURE:GSW) ("Green Swan") announces the assay results from its technical due diligence review on its 100% owned Copper Prince property in the world-famous Sudbury Basin, Ontario.

In May, 2016 Green Swan took three solid rock grab samples from pre-1950's blasted rock from one historic pit. In addition, a metre-long chip sample was taken from a trench wall in the southeastern part of the property. READ MORE

 

Green Swan Capital Corp. ANNOUNCES INCREASE IN FLOWTHROUGH FINANCING

Stockhouse - June 15, 2016

Green Swan Capital Corp. (TSXV: GSW) ("Green Swan") announces that due to investor demand it has increased the maximum amount of the previously announced flowthrough financing, to $130,000, priced at $0.095 (nine points five cents) per Flowthrough Unit. Each Flowthrough Unit will comprise of one flowthrough share and one full 12-cent warrant with a 12-month term. This financing is subject to regulatory approval. Finder's fees might be paid with respect to this flowthrough financing and the previously announced hard dollar offering (see the June 14, 2016 press release). READ MORE

 

Green Swan Capital Corp. CLOSES ON SUDBURY BASIN COBALT ASSET AND ANNOUNCES FINANCING

Stockhouse - June 14, 2016

Green Swan Capital Corp. (TSXV: GSW) ("Green Swan") announces that it has closed the previously announced 100% acquisition of the Copper Prince property in Falconbridge Township in the Sudbury Mining Division, Ontario.

Green Swan intends to focus its exploration efforts on the historic cobalt indicators. READ MORE

 

Green Swan Capital Corp. PROVIDES CORPORATE UPDATE ON DIVERSIFICATION

Market Wired - August 29, 2014

Green Swan Capital Corp. (TSX VENTURE:GSW) ("Green Swan") announces an update to its growth and diversification plan previously announced on April 8, 2014. The Ontario Securities Commission (OSC) has requested that Green Swan clarify its activities with respect to its survey of opportunities in the medical marijuana sector. The April 8, 2014 news release contained certain disclosure deficiencies with respect to the risks and uncertainties associated with Green Swan's then proposed plan to invest in medical marijuana opportunities in Canada. Notwithstanding these deficiencies, Green Swan's initial search pursuant to the board's direction has enabled it to eliminate the prospect of any involvement (either by investment or otherwise) in the Canadian medical marijuana sector, including without limitation any investment in a Marijuana for Medical Purpose Regulations licensee/applicant. As a result, Green Swan does not plan to activate the separate corporate division focused on marijuana growers as mentioned in Green Swan's management information circular dated May 5, 2014.. READ MORE

PRESS

COBALT SUPPLY TIGHTENS AS BATTERY DEMAND LOOMS

Benchmark Mineral Intelligence - July 14, 2016

Political tensions amidst the wider slump in global commodity markets, look set to continue the onslaught on cobalt production in the Democratic Republic of Congo (DRC) moving into H2 2016. Cobalt production in the DRC, home to over 60% of the world’s mined output, is estimated to have fallen by over 20% in Q1 2016 in reaction to falling copper prices. READ MORE

 

Trouble Looming for Congo Miners

Jocelyn Aspa - July 7, 2016

Things aren’t looking good in the Democratic Republic of the Congo’s mining industry. In June, the country’s chamber of mines announced the loss of 3,000 direct and at least 10,000 subcontractor jobs. A mining conference in Lubumashi had government officials and mining CEOs rally together to figure out how to save a failed copper mine. So, what exactly is going on in the Congo? Last September, Glencore‘s (LSE:GLEN) Katanga copper mine, which is one of the Congo’s biggest, announced an 18-month suspension. It hasn’t even been a year yet, and analysts are already expecting an extension, according to Reuters. READ MORE

 

ALPHANORTH FUND REVIEW - GREEN SWAN CAPITAL (PDF)

AlphaNorth - June 30, 2016

Fund Review The Fund returned 4.4% in June. In comparison, the TSX Venture index and TSX Total Return index returned 7.7% and 0.3% respectively during the month. The strong gains for the TSX Venture index have been lead primarily by the precious metal sector which has rebounded strongly from very depressed levels. READ MORE

 

Power Up! Dundee's Lithium and Electric Metals Conference Lithium, Graphite, Cobalt and LeaD (PDF)

Dundee Capital Markets - June 28, 2016

Lithium, graphite, cobalt and lead are key components required for the emerging battery boom. Battery grade raw material supply lags demand and prices have started to rise in response, as demonstrated by the recent 47% surge in lithium prices over the last year. This supply/demand imbalance is set to intensify with construction of up to 12 new mega-factories which is forecasted to triple battery manufacturing capacity by 2020. As the supply shortage for raw materials persists, competition between manufacturers to secure supply should intensity. With little new lithium, graphite, cobalt and lead production on the horizon, emerging and near-term developers are well-positioned to benefit. READ MORE

 

Battery-conscious hedge funds buy cobalt metal, look for more

Metalbulletin - June 27, 2016

Hedge funds and other private investors have bought cobalt metal in anticipation of higher prices as a result of expected stronger demand for batteries for electric vehicles, which contain cobalt, physical traders told Metal Bulletin this week. READ MORE

 

Petersen critiques Tesla’s cobalt, lithium and graphite disclosure for EV batteries

InvestorIntel - May 20, 2016

It’s been a fascinating week as one of my readers forwarded copies of a May 12 Commodities Comment from Macquarie Wealth Management that focused on China’s recent efforts to shore up its cobalt supply chains and a May 16 report from Morgan Stanley that focused on expected growth in global demand for lithium, graphite, cobalt, and copper from the electric vehicle (EV) and lithium-ion battery sectors. READ MORE

 

China aggressively acquiring gold, copper and cobalt assets

InvestorIntel - May 16, 2016

China Molybdenum (CMOC) has long earned its reputation as a highly acquisitive company. In 2015, it made its intentions known that it would pump around $2bn into acquiring mining assets outside of China. Traditionally a molybdenum and tungsten producer, CMOC has targeted copper in recent years, paying $820m for Rio Tinto’s Northparkes copper mine in New South Wales in 2013 and bidding for Barrick’s Zadivar mine in 2015. READ MORE

 

Farquharson confirms coming cobalt deficit, outlines Formation’s mine timeline

InvestorIntel - May 5, 2016

Formation Metals Inc. (TSX: FCO | OTCQX: FMETF | FWB: FOQ) ) is a Canadian mineral exploration and mine development company that through its wholly owned subsidiaries has interests in base and precious metals and uranium projects in Canada, United States and Mexico. The company’s primary asset, located in the mining friendly state of Idaho, is the 100% owned, fully-permitted Idaho Cobalt Project which is comprised of the mine and mill near Salmon, Idaho, and the proposed Cobalt Production Facility for refining mine concentrate. The mine site is now prepared to commence underground development contingent on successful conclusion of mine financing. READ MORE

 

John Petersen on the cobalt crisis — and what is wrong with EVs and battery technology

InvestorIntel - April 27, 2016

Lithium-ion battery and battery storage expert John Petersen this year created something of a sensation on InvestorIntel by putting his finger on a critical problem: there is not enough cobalt available to meet the demand from the growing lithium-ion battery industry. The key point is that just 6% of cobalt comes from primary production, the rest coming as a by-product of nickel and copper mining. If those latter mines are mothballed due to low prices, consequently that cobalt by-product disappears. “Without cobalt they can’t make their batteries,” he says. READ MORE

 

Cheap Lithium-ion Batteries for EVs vs. The Cobalt Cliff

InvestorIntel - April 15, 2016

Since early March I’ve written five articles that focus on supply and demand dynamics in the cobalt mining sector and explain why I believe the lithium-ion battery industry is facing a raw materials shortage of epic proportions. Today I’ll drill down into market dynamics within the lithium-ion battery industry and explain why I believe cheap lithium-ion batteries for electric vehicles (EVs) will be the first casualties of the Cobalt Cliff. READ MORE

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Peter M. Clausi

President, CEO and Director

416.890.1232

pclausi@greenswancapital.com

 

Brian Crawford

Chief Financial Officer and Director

905.691.0697

bcrawford@greenswancapital.com

 

For more information about Green Swan, please email info@greenswancapital.com

CONTACT