Gravelle as its Interim President and CEO by its Board of Directors as the
Company reviews its strategic options. Mr. Gravelle was elected to the Company’s Board of Directors at its last AGM as an independent director. He is
currently the Chair of Colt’s Audit Committee. Mr. Gravelle has extensive
experience working with mining companies in a professional services capacity.
As a result of this he has built a strong network of relationships with senior
executives and board members of public and private mining companies. The
Company intends to work closely with its former President, CEO and Company co-founder, Mr. Nikolas Perrault, in some form of executive or consulting capacity during this transitional time. Terms and conditions of his role
are currently under negotiation.
 There had been no prior indications from Colt or otherwise
that its president, CEO and co-founder Perrault had any intention of stepping down.
 The December 2016 Press Release stated that either
Gravelle or Jaffrey could be contacted for “for more information”
about the contents of the press release.
 Following the December 2016 Press Release, the last traded
price of Colt shares dropped 22 per cent from the December 20,
2016 share price of $0.045 to $0.035 at the end of the day on
December 21, 2016.
d) The January 2017 Press Release
 On January 31, 2017, Colt issued a press release in which
it disclosed that Perrault had made the Turcolt Investment and
had not been authorized to do so. Gravelle and Jaffrey were the
listed contact people for readers who sought more information.
( i) “In 2016, Nikolas Perrault, the former President and CEO,
made the decision to incorporate and invest ;500,000 in the
Turkish company [Turcolt], with ;250,000 of the funds pro-
vided from Colt’s cash resources and the additional ;250,000
borrowed from a shareholder of Colt”;
( ii) “While the incorporation of and investment in the Turkish
company and the borrowing of funds all required Colt board
of directors approval, the former President and CEO did not
seek board approval and did not inform the board of these
actions when they were done”;
( iii) Colt had determined that the “;500,000 it had invested in
[Turcolt] has been removed from [Turcolt’s] bank account
without Colt’s authorization”;
( iv) “The Company is in the process of determining the impact of
these removed funds on its financial statements for the third