Chilean Cobalt Corp.

We believe that these locations are suitable and adequate for our current operations.

• Our planned production development efforts are complex projects that will require significant capital expenditures and are subject to significant risks and uncertainties.
• We may make future acquisitions which may be difficult to integrate, divert management and financial resources and result in unanticipated costs.
• The development and adoption of new battery technologies that rely on inputs other than cobalt compounds could significantly impact our prospects and future revenues.
• Risks Related to Our Operations
• We have substantial international operations, and the risks of doing business in foreign countries could adversely affect our business, financial condition and results of operations.
• Our planned cobalt and copper extraction and planned production operations in Chile will expose us to specific political, financial and operational risks.
• Our planned operations will be subject to hazards and other disruptions, which could adversely affect our reputation and results of operations.
• We may not satisfy prospective customers’ or governments’ quality standards, and we could be subject to damages based on claims brought against us or lose customers as a result of the failure of our planned products to meet certain quality standards.
• Fluctuations in the price of energy and certain raw materials, and our inability to obtain raw materials and products under contract sourcing arrangements, could have an adverse effect on the margins of our planned products, our business, financial condition and our results of operations.
• We depend on our senior management team and the loss of one or more key personnel may impair our ability to grow our business.
• Our success depends upon our ability to attract and retain key employees and the identification and development of talent to succeed senior management.
• Some of our employees may be unionized or could be employed subject to local laws that are less favorable to employers than the laws of the United States.
• Our business and operations could suffer in the event of cybersecurity breaches or disruptions to our information technology environment.
• Theft of our intellectual property rights could have a material adverse effect on our business, financial condition and results of operations.
• We have not established “proven” or “probable” reserves, as defined by the SEC under Industry Guide 7, through the completion of a feasibility study for the minerals that we intend to produce.
• Our reliance on third-party contractors and consultants to conduct our exploration and development projects exposes us to risks.
• A shortage of equipment and supplies and/or the time it takes such items to arrive at our projects could adversely affect our ability to operate our business.
• Mining development and processing operations pose inherent risks and costs that may negatively impact our business.
• Failure to adequately manage our growth may seriously harm our business.
• If we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork and focus that contribute crucially to our business.
• Our future operating results may fluctuate, which makes our results difficult to predict and could cause our results to fall short of expectations.
• If we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decline.
• The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members.
• We are an emerging growth company and subject to less rigorous public reporting requirements and cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.
• We are a smaller reporting company and will be exempt from certain disclosure requirements, which could make our common stock less attractive to potential investors.
• As a result of becoming a public company, we are obligated to develop and maintain proper and effective internal control over financial reporting. We may not complete our analysis of our internal control over financial reporting in a timely manner, or these internal controls may not be determined to be effective, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
• As an emerging growth company, our auditor is not required to attest to the effectiveness of our internal controls.
• Members of our board of directors and our executive officers will have other business interests and obligations to other entities.
• Our business could be adversely affected by natural disasters, public health crises, political crises or other unexpected events for which we may not be sufficiently insured.
• Risks Related to Environmental Factors
• We, our future operations, planned facilities, prospective products and raw materials are subject to environmental, health and safety laws and regulations, and costs to comply with, and liabilities related to, these laws and regulations could adversely affect our business.
• Environmental regulations could require us to make significant expenditures or expose us to potential liability.
• Climate-related transition risks, including evolving regulatory, market and customer requirements, could materially increase our costs, restrict our access to markets, or impair the commercial viability of our future products.
• Our ability to secure and maintain adequate water rights and comply with water-use and water-quality regulations may materially affect our operations.
• We may be subject to significant liabilities associated with tailings, waste-rock management, or legacy environmental conditions at or near our project sites.
• Our operations may be adversely affected by energy-price volatility, grid reliability issues, or requirements to use renewable energy.
• The technical and environmental performance of potential processing technologies, including bioleaching, remains uncertain and may not be commercially viable at scale.
• Risks Related to Social and Community Factors
• We may face community opposition, social-license challenges, or obligations to consult with indigenous or local communities, any of which could delay or prevent project development.
• We may be required to engage in formal consultation processes with Indigenous or local communities, and failure to do so could result in delays, legal challenges, or reputational harm.
• We may face challenges in recruiting, training, and retaining a skilled workforce, and our reliance on contractors may expose us to additional safety and compliance risks.
• We may be subject to emerging human-rights due-diligence laws that impose obligations on our operations and supply chain.
• Risks Related to Governance, Regulatory and Financing Factors
• Our business and financial results may be adversely affected by various legal and regulatory proceedings.
• We are subject to numerous governmental permits that are difficult to obtain and we may not be able to obtain or renew all of the permits we require, or such permits may not be timely obtained or renewed.
• Evolving ESG-related regulations, responsible-sourcing requirements, and due-diligence expectations may impose significant costs on our business and could limit our ability to access certain markets or financing sources.
• Failure to meet responsible-sourcing, traceability, or ESG-performance requirements imposed by customers or supply-chain partners could limit our ability to sell our future products.
• Unanticipated changes in our tax provisions, variability of our effective tax rate, the adoption of new tax legislation or exposure to additional tax liabilities could impact our financial performance.
• Our participation in ESG assurance frameworks may expose us to additional scrutiny, costs, and reputational risks.
• Our governance systems, ESG processes, and internal controls are still being developed and may not be sufficient to support future operational or regulatory requirements.
• ESG-related concerns may delay or limit our ability to obtain financing or increase our cost of capital.
• Changes in Chilean mining law, tax regimes, regulatory requirements, or political conditions could materially affect our operations.
• We may face risks related to transportation infrastructure, port capacity, fuel availability, or labor disruptions that could delay or increase the cost of delivering our products.
• Risks Related to Ownership of Our Common Stock and Lack of Liquidity
• An active trading market for our common stock may not develop and you may not be able to resell your shares at or above the price that you paid.
• Our stock price may be volatile.
• If securities or industry analysts do not publish research or reports about our business, or they publish negative reports about our business, our share price and trading volume could decline.
• Our common stock is currently deemed to be “penny stock”, which makes it more difficult for investors to sell their shares.
• FINRA sales practice requirements may limit a stockholder’s ability to buy and sell our stock.
• Our securities holders may face significant restrictions on the resale of our securities due to state “Blue Sky” laws.
• Substantial future sales of shares of our common stock could cause the market price of our common stock to decline.
• We do not intend to pay dividends for the foreseeable future.
• Stockholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through issuance of additional shares of our common stock.
• If we fail to maintain effective internal control over financial reporting, the price of our securities may be adversely affected.
• Shares eligible for future sale may adversely affect the market.
• Because we may not be subject to compliance with rules requiring the adoption of certain corporate governance measures, our stockholders have limited protection against interested director transactions, conflicts of interest and similar matters.
• Our Articles of Incorporation and our bylaws provide that the state and federal courts of the State of Nevada will be the sole and exclusive forum for substantially all disputes between us and our shareholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.