GLO.TO · 2024-03-27 12:00:00

Global Atomic Announces 2023 Results and publishes Dasa Uranium Project Feasibility Study Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026

Economic Studies

NEWS RELEASE

Global Atomic Announces 2023 Results

and publishes Dasa Uranium Project Feasibility Study

Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026

Toronto, ON, March 27, 2024: Global Atomic Corporation (“Global Atomic” or the “Company”),

(TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced today its operating and financial

results for the year ended December 31, 2023.

HIGHLIGHTS

Dasa Uranium Project - Mineral Resource Estimate

¾ On May 23, 2023, the Company announced the completion of an updated Mineral Resource

Estimate (“MRE”) for the Dasa Project. The MRE includes the results of a 16,000-meter drill

program that was designed to convert Inferred Resources to Indicated Resources and

resulted in a 50% increase in Indicated Resources at a 1,500-ppm cut-off grade.

Dasa Uranium Project - Off-take Agreements

¾ In 2023, the Company formalized three off-take agreements with major North American

utilities for the delivery of 1.4 million pounds U 3O8 per year for the first five years of mining.

These off-take agreements represent a small percentage of the current 68.1 million pounds

of production in the new 23.75-year Mine Plan and provide the Company with the ability to

repay the debt financing facility, while maintaining leverage to a tightening uranium market.

Dasa Uranium Project - Mining

¾ Ramp development has been underway since the beginning of 2023, with over 950 meters

completed. Mine development is now continuing down dip in the footwall of the orebody.

¾ In August 2023, the closure of the Benin border interrupted the usual supply route from the

Port of Cotonou through Benin to Niger. The Company suspended mine development due to

interruptions of its supply chain and depletion of certain consumables until the Company

established an alternate shipping route through Togo and Burkina Faso. Using this alternate

route, underground mine development resumed in December 2023.

¾ As of the date hereof, the Dasa Mine, operated by SOMIDA, and overseen by Global Atomic

Corporation, achieved 595 days without a Lost Time Injury (“LTI”). This achievement is a

testament to management’s dedication to create a safe work environment and the team’s

success in implementing effective safety measures.

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Dasa Uranium Project – Financing

¾ The Company is engaged with a Canadian export credit agency and a U.S. development bank

to establish a debt facility to finance 60% of Dasa’s development costs. The Company has

been advised by this banking syndicate that Cr edit Committee approval may occur in April

2024, followed by final approval by the Board of Directors in June 2024.

¾ Management continues to work towards the completion of this debt facility, however, the

Company is also involved in discussions with other funding entities and will continue to

evaluate alternative funding options that support a financing decision in the best interests of

shareholders.

Dasa Uranium Project –Team

¾ In 2023, the Company added two key members to the Dasa management team: John

Wheeler, Director of Operations and Site G eneral Manager and Daniele Valentino, Deputy

Director of Operations & Assistant General Manager. Both individuals have substantial West

African mining experience and we welcome them to the SOMIDA operating team.

Niger Political Situation

¾ On February 14, 2023, the Company announced that a local court in Agadez, Niger, had

issued orders against the Government of Niger and the Company’s subsidiary in Niger,

SOMIDA, in response to historical concerns raised by certain local organizations. On February

24, 2023, the ruling was overturned and annulled as having no merit. SOMIDA continued mine

development operations throughout the court proceedings.

¾ On July 26, 2023, the Niger military initiated a change in government. The new Government

of Niger subsequently confirmed its support of the Dasa Project and encouraged SOMIDA to

proceed on schedule. The Economic Community of African States (“ECOWAS”) imposed

wide-ranging sanctions on Niger, which were subsequently removed in early 2024. The Niger-

Benin border is the only border that remains closed, however is expected to open soon.

¾ On October 10, 2023, the United States formally recognized the events of July 26, 2023, as a

“Coup d’Etat”, which temporarily halted the U.S. Development Bank’s work on their debt

financing facility for the Dasa development.

¾ In November 2023, the U.S. Senate voted overwhelmingly to support continued U.S. military

presence in Niger. The U.S. Under Secretary for African Affairs stated that the U.S. stands

ready to support Niger in a successful transition to democratic rule and the U.S. Development

Bank resumed its work on the debt facility for Dasa.

Turkish Zinc Joint Venture

¾ Operations were impacted by major earthquakes which occurred in Türkiye during Q1 2023.

Local steel mills, which supply the Turkish Zinc Joint Venture (“BST” or the “Turkish JV”) with

Electric Arc Furnace Dust (“EAFD”), ceased operations for a period of time before resuming

operations.

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¾ The Turkish JV processed over 66,000 tonnes EAFD to produce 27.2 million pounds of zinc

in concentrate at an average realized price of US$1.20/lb.

¾ The Company’s share of the Turkish JV EBITDA was a loss of $2.4 million in 2023 (a gain of

$4.2 million in 2022).

¾ The revolving credit facility of the Turkish JV was US$12 million at the end of 2023 (Global

Atomic share – US$5.9 million).

¾ The cash balance of the Turkish JV was US$1.9 million at the end of 2023.

Corporate

¾ On March 17, 2023, the Company completed a Bought Deal Prospectus Offering of

18,666,667 Units at a price of $3.00 per Unit for gross proceeds of approximately $56 million.

Each Unit comprised one common share and one-half warrant exercisable at $4.00 per

common share for a period of 18-months from closing.

¾ On November 21, 2023, the Company filed a Short Form Prospectus for up to $350 million

which amount includes up to $50 million that may be raised under an At-the-Market (“ATM”)

equity program as per the supplemental prospectus filed December 6, 2023, over the ensuing

25-month period.

¾ On December 22, 2023, the Company completed a private placement of 9,000,000 Units at a

price of $2.50 per Unit for gross proceeds of $15 million. Units comprised one common share

and one-half common share purchase warrant. Each full warrant could be exercisable at $3.00

per share for a period of 12 months from closing subject to accelerated expiry should the price

of the common shares exceed a volume weighted average price (“VWAP”) of $3.50 for 5

consecutive trading days. The acceleration clause was activated in January 2024 and all

warrants exercised for gross proceeds of $9 million.

¾ Global Atomic continues to receive quarterly management fees and monthly sales

commissions from the Turkish JV ($690,000 in 2023 compared to $1,149,000 in 2022),

helping to offset corporate overhead costs.

¾ Cash balance as of December 31, 2023, was $24.9 million.

Subsequent Events

¾ In January 2024, the Niger Government suspended the approval of new and/or renewed

mineral exploration permits, including renewals recently received by the Company. This

suspension was initiated to conduct an audit of recently issued exploration permits and related

to undisclosed gold shipments. This announcement had no impact on the mining permits or

operations at the Dasa Project and the Company expects its exploration permits to be

renewed shortly.

¾ On March 5, 2024, the Company released the results of its Dasa Uranium Project 2024

Feasibility Study (“FS”) as an update to its 2021 Phase 1 Feasibility Study which confirmed

an extension of the Mine Plan from 12 years to 23.75 years (2026-2049), a 50% increase in

Mineral Reserves to 73 million pounds U 3O8 and an increase in total production by 55% to

68.1 million pounds U3O8. Using an average uranium price of $75/lb U3O8, the FS shows an

NPV8 of US$917 million, an IRR of 57% and a payback period of 2.2 years.

Page 4 of 18

¾ On March 5, 2024, the Company announced that it had signed a Letter of Intent from a

European nuclear power utility to purchase U 3O8 from Dasa, representing its fourth off-take

agreement for deliveries starting in 2026.

¾ On March 16, 2024, Niger announced its intention to terminate its military cooperation

agreement with the United Sates. Global Atomic understands the two countries are in

discussions to reach a mutually acceptable resolution.

¾ On March 27, 2024, the Company published the full Dasa Uranium Project Feasibility Study

(“FS”), details of which are discussed in the “Uranium Business” section below. The FS is

available at the Global Atomic web site and at www.sedarplus.ca.

Global Atomic President and CEO, Stephen G. Roman commented, “ I congratulate the entire

team at Global Atomic, including those at our Niger subsidiaries and those JV employees in

Türkiye for their perseverance and dedication amidst many external challenges in 2023 both

geopolitical and geophysical. I also thank our investors who maintained their support and

confidence through these challenging times. The strategic nature of the Dasa deposit, the quality

of our team, and the world need for clean, reliable, nuclear power are the fundamental drivers for

our business.”

“We proved the impressive scope of Dasa early in 2023, when we published a revised Mineral

Resource Estimate which converted Inferred Resources into 50% more Indicated Resources. We

also delineated another 51.4 million pounds in the Inferred category that could eventually be

brought into our next technical update. In early 2024, we announced a new Feasibility Study that

extended the Dasa Mine Plan from 12 to 23 years, increased Mineral Reserves by 50% to 73

million pounds and uranium production by 55% to 68.1 million pounds. Using a conservative

uranium base price of $75 per pound and very conservative cost assumptions that include several

layers of contingencies, the Study forecasts a very attractive after-tax NPV and an impressive

after-tax IRR.”

“The current roster of 275 employees at the Dasa Project, are continuing with underground and

surface development to prepare for the processing plant erection planned to start later this year.

The construction crews will begin arriving as the expanded camp is completed mid-year. I look

forward to bringing further updates to shareholders as we continue to advance the Dasa Project

to first Yellowcake production in Q1, 2026.”

OUTLOOK

Dasa Uranium Project

¾ Continue development of the underground ramp and site infrastructure to remain on schedule

to supply uranium ore to the processing plant from the end of 2025.

¾ Addition of an in-country construction team, bringing the site complement from 275 to

approximately 500.

¾ In Q2 2024, our Bank Syndicate is expected to approve the Debt Financing facility for the

development of the Dasa Project.

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¾ Complete final engineering, site development and civil works for the Dasa processing plant

and begin installation of equipment.

¾ Continue marketing efforts to secure additional uranium off-take agreements.

Turkish Zinc Joint Venture

¾ The Company anticipates operations at its Turkish JV will be profitable in 2024 as local steel

mills normalise production.

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COMPARATIVE RESULTS

The following table summarizes comparative results of operations of the Company:

(all amounts in C$) 2023 2022

Revenues 689,996 $ 1,149,494 $

General and administration 10,275,282 10,265,688

Share of equity loss 4,128,171 287,779

Other expense - 583,246

Finance income, net (1,159,471) (155,142)

Foreign exchange loss 4,032,344 2,666,330

Net loss (16,586,330) $ (12,498,407) $

Net income (loss) attributable to:

Shareholders of the Company (16,603,680) (12,475,109)

Non-controlling interests 17,350 (23,298)

Other comprehensive income 913,394 $ 901,107 $

Comprehensive loss (15,672,936) $ (11,597,300) $

Comprehensive gain (loss) attributable to:

Shareholders of the Company (15,670,449) (11,630,229)

Non-controlling interests (2,487) 32,929

Basic and diluted net loss per share ($0.08) ($0.07)

Basic weighted-average

number of shares outstanding 198,082,525 177,647,065

Diluted weighted-average

number of shares outstanding 198,082,525 177,647,065

December 31, December 31,

2023 2022

Cash and cash equivalents 24,857,915$ 8,400,008 $

Property, plant and equipment 129,986,343 82,234,716

Exploration & evaluation assets 1,370,358 1,115,983

Investment in joint venture 12,628,251 16,387,040

Other assets 8,755,878 2,118,258

Total assets 177,598,745 $ 110,256,005 $

Total liabilities 19, 412,976$ 8,746,681 $

Total equity 158,185,769 $ 101,509,324 $

Year ended December 31,

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The consolidated financial statements reflect the equity method of accounting for Global Atomic’s

interest in the Turkish JV. The Company’s share of net earnings and net assets are disclosed in

the notes to the financial statements.

Revenues include management fees and sales commissions received from the joint venture.

These are based on joint venture revenues generated and zinc concentrate tonnes sold.

Revenues in 2023 have decreased due to lower zinc prices and sales in the Turkish Zinc JV.

General and administration costs at the corporate level include general office and management

expenses, stock option awards, costs related to maintaining a public listing, professional fees,

audit, legal, accounting, tax and consultants’ co sts, insurance, travel, and other miscellaneous

office expenses.

Share of net earnings from joint venture represents Global Atomic’s equity share of net

earnings from the Turkish Zinc JV.

Finance income includes interest earned from the short-term bank deposits. Finance income

increased significantly in 2023, representing higher interest rates and higher cash balances on

hand since the Company’s March 2023 equity raise.

Foreign exchange loss represents realized and unrealized exchange losses that arise from the

translation of foreign currency denominated assets and liabilities to local currency. For the year

ended December 31, 2023, devaluation of the United States dollar relative to the West African

Franc (“CFA”) and Canadian dollar resulted in $4 million foreign exchange loss.

Uranium Business

Niger Mining Company

Under Niger’s Mining Code, a Niger mining company must be incorporated to carry out mining

activities. Société Minière de Dasa S.A. (“SOMIDA”) was incorporated on August 11, 2022. The

Republic of Niger received its 10% free carried interest in the shares of SOMIDA and elected to

subscribe for an additional 10%, resulting in a total ownership of 20% of the shares. Under the

terms of the Company’s Mining Agreement, the Republic of Niger commits to fund its

proportionate share of capital costs and operating deficits for the additional 10% interest. The

Republic of Niger has no further option to increase its ownership.

Mineral Resources

Since 2011, GAFC’s exploration activities have been primarily focused on the Dasa deposit. In

2018, GAFC began a drill program at an area identified as the “Flank Zone” to assess the potential

for near-surface high-grade mineralization, as well as testing strike extensions of the deeper

mineralization at depth. The Company was successful with both programs. The drilling identified

significant amounts of high-grade mineralization in the Flank Zone and in several new zones along

strike and down dip. This information guided the location of the 16,000-meter infill drilling program

Page 8 of 18

in 2021 and 2022 when the Company drilled a further 28 diamond drill holes for a total of 16,368

meters, targeting areas of Inferred Resources, so they could be upgraded to the Indicated

category. Using this new data, AMC Consultants, (“AMC”), was engaged to prepare an updated

Mineral Resource Estimate (“2023 MRE”) which they reported on with an effective date of May

12, 2023.

Highlights from the 2023 MRE included a grade-tonnage report at varying cut-off grades and are

summarized in the following table:

Grade-Tonnage report, highlights from 2023 MRE

Cut-Off Category Tonnes eU3O8

Contained

metal

eU3O8,

ppm Mt ppm Mlb

100 Indicated 103.6 803 183.5

Inferred 71.0 636 99.5

320 Indicated 44.9 1,602 158.5

Inferred 25.4 1,435 80.4

1,200 Indicated 12.6 4,201 117.1

Inferred 5.9 4,320 56.1

1,500 Indicated 10.1 4,926 109.6

Inferred 4.4 5,349 51.5

2,500 Indicated 5.7 7,258 91.0

Inferred 2.4 8,211 43.2

10,000 Indicated 0.9 22,185 43.5

Inferred 0.6 18,362 25.3

The 2023 MRE concluded on the following Mineral Resource Statement: