GEMC.V · 2020-02-27 12:00:00

Powered BY Cobalt … Driven BY Demand Global Energy Metals Secures Significant Endorsement of Australian Proejcts Through Non-Dilutive Financing from Sale of Royalties to Electric Royalties Ltd.

Financings Royalties & Streams

TSX.V GEMC 

www.globalenergymetals.com

Suite 1501,

Sun Tower

128 West Pender St. Vancouver,

V6B 1R8

T +1.604.688.4219

TwiGer @EnergyMetals

GLOBAL ENERGY METALS SECURES SIGNIFICANT

ENDORSEMENT OF AUSTRALIAN PROEJCTS THROUGH

NON-DILUTIVE FINANCING FROM SALE OF ROYALTIES

TO ELECTRIC ROYALTIES LTD.

Vancouver, BC / TheNewswire / February 27, 2020 / Global Energy

Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 (“Global

Energy Metals”, the “Company” and/or "GEMC") is pleased to

announce that it has entered into a leGer of intent (“LOI”) with Electric

RoyalUes Ltd. (“Electric RoyalUes”) for the sale of royalUes on Global Energy’s

100% owned Millennium Cobalt Project, the Mt. Dorothy Cobalt Project and

the Cobalt Ridge Project (the “Royalty Por[olio”) located in Queensland,

Australia (the “NSR Sale”).

President & CEO, Mitchell Smith commented:

“This commitment by Electric Royalties is a signiﬁcant endorsement of

the Millennium and Mount Isa projects by a mine ﬁnance ﬁrm focused

on minerals core to the new energy economy. This royalty sales pro-

vides Global Energy Metals with an attractive form of ﬁnancing and

short term investments equal to our market cap through the spin-out of

a small royalty on a portion of our Australian projects. It also provides

an option to fund future development at Millennium in a non-dilutive

manner to the company and create an opportunity for cross marketing

promotion with a strong royalty partner.”

Electric Royalties CEO & Director, Brendan Yurik said:

“We are pleased to have the opportunity to collaborate with Global En-

ergy Metals on the development of the Millennium and Mount Isa

Projects and the royalties will be an excellent addition to our diversiﬁed

portfolio of battery mineral royalties. The acquisition of this package is

consistent with Electric Royalties’ objective in establishing a new royalty

company with the potential to add considerable value for its sharehold-

ers. As this represents our ﬁrst cobalt royalties we are extremely en-

couraged by the potential Millennium has in becoming a source of criti-

cal material needed to feed the electric revolution.”

Initial Royalty

Pursuant to the terms of the LOI, in consideraUon for a 0.5% gross metal

royalty (the “Royalty”) on Millennium and the Mount Isa Projects, Electric

RoyalUes will issue to Global Energy Metals 1.15 million shares (the

“ConsideraUon Shares”) in Electric RoyalUes and make a CAD $150,000 cash

payment on the date of compleUon of the TransacUon as mutually agreed to

by the parUes (the “Closing Date”). The ConsideraUon shares will be escrowed

and have a staged vesUng period over eighteen months.

Additional Royalties Option

ERL, will also be granted a call opUon (“First OpUon”), exercisable at any Ume,

for a period of two years from the EﬀecUve Date, to acquire a 0.5% royalty on

the Net Smelter Returns from the Millennium Cobalt Project (the “Millennium

NSR”), by paying C$500,000 to Global, payable up to 25% in shares of ERL, at

ERL’s elecUon.

Upon exercise of the First OpUon, ERL will have a call opUon, exercisable on

the earlier of: (i) the third anniversary of the Closing Date and (ii) six months

from the date that a preliminary economic analysis or similar study on the

Millennium Project is provided to ERL, to increase the Millennium NSR by a

further 1%, by paying C$1,000,000 to Global, payable up to 25% in shares of

ERL, at the elecUon of ERL.

CompleUon of the NSR Sale is subject to the saUsfacUon of certain closing

condiUons.

ABOUT ELECTRIC ROYALTIES LTD.

Electric RoyalUes is a royalty company set to take advantage of the demand

for a wide range of commodiUes (lithium, vanadium, manganese, Un,

graphite, cobalt, nickel & copper) that will beneﬁt from the drive to

electriﬁcaUon (cars, rechargeable baGeries, large scale energy storage,

renewable energy generaUon and other applicaUons).

Electric vehicle, baGery producUon capacity and renewable energy generaUon

is slated to increase signiﬁcantly over the next several years and with it the

demand for target commodiUes. This creates a unique opportunity to invest in

and acquire royalUes over the mines and projects that will supply the

materials needed to feed the electric revoluUon

Electric RoyalUes currently has a por[olio of 6 royalUes under binding leGer of

intent and plans to focus predominantly on acquiring royalUes on advanced

stage projects as well as operaUng projects to build a diversiﬁed por[olio

located in jurisdicUons with low geopoliUcal risk.

(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)

Global Energy Metals provides investors and partners with exposure to the

immediate need for metals criUcal to the new energy economy by building a

diversiﬁed global por[olio of cobalt and baGery metals rich projects in top-

Uer mining jurisdicUons with exploraUon & development upside to become a

supply chain soluUon to safe and reliable cobalt for downstream partners.

Global Energy Metals holds 100% of the Millennium Cobalt Project and two

neighbouring discovery stage exploraUon-stage cobalt assets in Mt. Isa,

Australia. It also currently owns 70% of the Werner Lake Cobalt Mine in

Ontario, Canada and has entered into an agreement to acquire an 85%

interest in two cobalt-nickel-copper exploraUon projects in Nevada, 150km

East of the Tesla Gigafactory.

For Further Information:

Global Energy Metals CorporaUon

#1501-128 West Pender Street

Vancouver, BC, V6B 1R8

Email: [email protected]

t. + 1 (604) 688-4219 extensions 236/237

TwiGer: @EnergyMetals

Cautionary Statement on Forward-Looking Information:

Certain information in this release may constitute forward-looking

statements under applicable securities laws and necessarily involve

risks associated with regulatory approvals and timelines. Although

Global Energy Metals believes the expectations expressed in such

forward-looking statements are based on reasonable assumptions,

such statements are not guarantees of future performance and actual

results or developments may differ materially from those in the forward-

looking statements. Except as required by law, the Company

undertakes no obligation to update these forward-looking statements in

the event that management’s beliefs, estimates or opinions, or other

factors, should change. For more information on Global Energy and

the risks and challenges of their businesses, investors should review

the ﬁlings that are available at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as

that term is deﬁned in the policies of the TSX Venture Exchange)

accepts responsibility for the adequacy or accuracy of this release.

We seek safe harbour.

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