February 16, 2017

Report #4Cobalt-Nickel-Copper in Newfoundland & Labradorand Québec, Canada

Escalating cobalt prices lead King‘s Bay to acquire Trump Islands propertyWhile there are dozens of buildings, businesses and ritzy resorts around the globe that carry the name of US President Trump, it’s unlikely there’s any connection between him and the Trump Islands, south of Twillingate in north-central Newfoundland and Labrador.

A folklore professor from Memorial University, Philip Hiscock, has done the research but says origin is still a mystery. However, he believes that the most likely explanation is related to the discovery of a copper vein on North Trump Island, the reason why people started living there.

“If the name only appears once they discovered the copper, then trump also had a meeting of lucky find and a real kind of pay dirt kind of thing, a windfall, so it could be the people who started operating a copper mine … maybe they called it Trump because they were going to make a killing,” said Hiscock.

And they did, but only for 10 years, Hiscock said.

Today, King’s Bay announced the 100% acquisition of the North Trump Island Copper-Cobalt Property (2 km2), located 7 km south of Twillingate. CEO Kevin Bottomley commented:

“The Trump Island acquisition fits in with our commitment to advancing high grade copper-cobalt properties in Newfoundland & Labrador. The fact that there has been historical mining on the island adds a new dimension to our property portfolio.”

After a successful initial exploration pro-gram (sampling from the historic mine shaft, mapping and electromagnetics), King’s Bay intends to start drilling on North Trump Island this summer.

Last week, King’s Bay acquired 3 cobalt-copper properties in Québec, all of which provide an excellent opportunity to make a discovery by following up on promising historic exploration that did not include drilling. King’s Bay also owns the Lynx Lake Copper-Cobalt Property in Newfoundland, where exploration will start soon to identify drill targets.

Company Details

King‘s Bay Gold Corp.Suite 1450 – 789 West Pender StreetVancouver, B.C. V6C 1H2 CanadaPhone: +1 604 681 1568 Email: brad@kingsbayres.comwww.kingsbayres.comShares Issued & Outstanding: 41,006,423

Canadian Symbol (TSX.V): KBGCurrent Price: $0.185 CAD (02/15/2017)Market Capitalization: $8 Million CAD

German Symbol / WKN: KGB1 / A2AN0E Current Price: €0.135 EUR (02/15/2017)Market Capitalization: €6 Million EUR

Chart Canada (TSX.V)

Chart Germany (Frankfurt)

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revious coverage on King’s Baynoted that the year 2017 is poised to become a breakout

year for cobalt prices. Having assembleda quality portfolio of 5 prospective cobalt exploration projects in Newfoundland and Québec, King’s Bay has an early mover advantage in the cobalt space.

The Trump Island Project

Today, King’s Bay acquired this cobalt-copper prospective property, which almost completely covers North Trump Island near Twillingate in Newfoundland.

In 1863, Nicholas Clymo, a miner of Cornwall (UK) visited North Trump Island and sunk a shaft to follow a 0.9 m wide mineralized zone of massive chalcopyrite.

It was reported that the mineralized quartz vein expands at the bottom of the shaft, which was only 6 m long. Due to limited technology at that time, no further excavation could be safely continued. Clymo reported that some high-grade copper-cobalt ore was shipped to Swansea in England.

In 1953, J. Kalliokoski of the Newfound-land Geologic Survey conducted a mapping and prospecting program for Newmont in the area, but no sample assays were reported.

In 1999, limited rock and soil grab sampling by G. Lewis, an experienced local prospector, revealed mineralization assaying up to 0.3% cobalt, 3.8% copper, 2.9 g/t gold and 10.9 g/t silver near the old Clymo mine shaft.

The compilation of his work suggests that a more detailed exploration program is warranted.

To date, North Trump Island has never been drill tested.

King’s Bay plans to start a drill program this summer, in case a prior exploration program (prospecting, mapping, sampling from the historic shaft area, local-scale electromagnetics) proves successful in identifying drill targets.

Local Geology

The property claims cover the majority of North Trump Island and includes mainly Sleepy Cove mafic pillow basalts and breccias which have been retro-metamorphosed to chlorite-sericite-epidote schist foliated subparallel with the contact with the Twillingate granitoid.

Mineralisation, as is currently known, occurs as chalcopyrite, pyrite, and pyrrhotite in quartz vein networks and high-sulphide lenses (Clymo Shaft).

Regional Geology

The Trump Island Group lies near the southeast boundary of the Notre Dame Subzone of the Dunnage Zone in the Central Mobile Belt, locally marked by the Chanceport Fault.

The Central Mobile Belt represents the boundary of Laurentia and Gondwanaland at the start of the Appalachian-Caledonian Orogeny. The oldest unit in the Twillingate area is the Cambrian Sleepy Cove Formation

mafic pillow flows and breccias mixed with minor silicic volcaniclastics. The Twillingate Granitoid, a high-soda trondjhemite characteristic of ophiolite assemblages intruded the mafic formation. Zircon age-dates place the granitoid as Late Cambrian (510 my). Amphibolite dykes intrude the granitoid and mafic units with Lower Ordovician zircon ages.

The ophiolite assemblages in the Notre Dame Subzone host a number of copper-rich deposits that have been mined in west-central Newfoundland.

Previous Coverage

Report #3: “Advancing a cobalt-rich portfolio of discovery-ready exploration projects in Canada” (February 6, 2017)

Report #2: “Cobalt Crunch Time” (January 20, 2017)

Report #1: “Potential for a Massive Discovery of Cobalt, Copper and High-Tech Metals” (October 27, 2016)

Report #4 | King‘s Bay Gold Corp.

Although the North Trump Island Property appears remotely located in the north-central parts of Newfound in Canada, a potential mining operation would benefit from relatively easy access, near-by towns with workers, and direct shipping of ore and/or concentrates to smelters in Canada or abroad. (Above map from Google; see also “Once Upon A Mine“)

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than statements of historical fact should be con-sidered forward-looking statements. Much of this report is comprised of statements of projection. Statements in this report that are forward looking include that King’s Bay Gold Corp. or any other company or market will perform as expected; that King’s Bay Gold Corp. will complete the recently announced transaction(s); that the company will acquire more projects; that King’s Bay Gold Corp. will form joint ventures; that exploration and drilling will start soon; that extensive potential for multiple deposits is seen by King’s Bay; that exploration will start once weather conditions permit; that exploration has been or will be successful; that the company can raise suffi-cient funds for a transaction, exploration and corporate matters; that any of the mentioned plans, comparisons with other companies, regions or numbers are valid or economic. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these for-ward-looking statements. Risks and uncertain-ties respecting gold and resource companies are generally disclosed in the annual financial or other filing documents of King’s Bay Gold Corp. and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to King’s Bay Gold Corp., a number of risks relate to any statement of projection or forward statements, including among other risks: the receipt of all necessary approvals and permits; the ability to conclude a transaction to start or continue exploration; uncertainty of future market regulations, capital expenditures and other costs; finan-cings and additional capital requirements for exploration, development, construction, and operating of a project; the receipt in a timely fashion of further permitting for its legislative, political, social or economic developments in the jurisdictions in which King’s Bay Gold Corp. carries on business; operating or technical difficulties in connection with production or development activities; the ability to keep key employees, joint-venture partner(s), and oper-ations financed. There can be no assurance that such statements will prove to be accur-ate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking

information. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report.Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities men-tioned. Rockstone, its owners and the author of this report are not registered broker-deal-ers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-deal-er. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu Capital Corp. is to research and report on companies in which Zimtu Capital Corp. has an investment. So while the author of this report is not paid directly by King’s Bay Gold Corp., the author’s employer Zimtu Capital Corp. will benefit from appreciation of King’s Bay Gold Corp.’s stock price. The author also own shares of King’s Bay Gold Corp.., as well as shares of Zimtu Capital Corp., and thus would also benefit from volume and price appreci-ation of its stocks. Hence, multiple conflicts of interests exist. Therefore, the information provided herewithin should not be construed as a financial analysis or recommendation but as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independ-ently and has received, which the author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. King’s Bay Gold Corp. has not reviewed all of the content of this report prior to publication. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into ef-fect. Please read the entire Disclaimer careful-ly. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information pro-vided is educational and general in nature.

Author Profile & Contact

Stephan Bogner (Dipl. Kfm. FH)Rockstone Research 8050 Zurich, Switzerland+41-44-5862323sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London) and the University of Queensland

(Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller (“Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

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Report #4 | King‘s Bay Gold Corp.