Global Atomic Announces Positive PEA Results FOR Dasa

PRESS RELEASE

GLOBAL ATOMIC ANNOUNCES POSITIVE PEA RESULTS FOR DASA

Toronto, ON, October 23, 2018: Global Atomic C orporation (“Global Atomic” or the “Company”), (TSX-V: GLO,

FRANKFURT: G12) is pleased to announce the results of the Preliminary Economic Assessment (“PEA”) on the

DASA Project (“DASA” or the “Project”), located in the Republic of Niger.

A summary of the PEA is provided below, including opportunities being explored through an alternate mining

strategy to accelerate development of the Project for early mining. All figures are stated in U.S. dollars, unless

otherwise stated.

HIGHLIGHTS

 The objective of the PEA was to study the DASA Project as an integrated underground mining operation,

processing mineralized material through an on -site mill (the “ DASA Standalone Scenario”) initially

operating at 2,500 tpd and ramping up to 3,000 tpd. Highlights include:

o High grade resource: 69 million lbs U3O8 recovered at an average grade of 2,380 ppm U3O8 over

a 15 year mine life.

o Scalable production: Annual production sustained from 4 Mlb to 7 Mlb U3O8 over the mine life.

o Low cost operation: All-in sustaining cost (“AISC”) of US$28.51/lb U3O8.

o Initial CAPEX: US$320 million, including US$141 million for an on -site mill; US$467 million with

sustaining capital and reclamation.

o Significant NPV and project return at expected long-term uranium price:

NPV and IRR – DASA Standalone Scenario

Unit Uranium Price (US$/lb U3O8)

$45.00 $50.00 $55.00

Pre-Tax

NPV @ 8% US$ M $342 $539 $735

IRR (100% Equity) 27% 37% 46%

Post-Tax

NPV @ 8% US$ M $172 $299 $437

IRR (100% Equity) 18% 25% 32%

The PEA was completed in accordance with NI 43-101, Canadian Institute of Mining, Milling and Petroleum (“CIM”)

standards. The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative

geologically to have economic considerations applied to them that would enable them to be categorized as

Mineral Reserves. There is no certainty that PEA results will be realized. Mineral Reso urces are not Mineral

Reserves and do not have demonstrated economic viability.

 An alternate mine plan scenario, the “Alternate Mining Strategy”, based on the July 2017 MOU signed

with Orano Mining (“Orano”), in which high grade mineralized material is sold to Orano targeting early

cash flow, identified a significant value opportunity. Highlights include:

o Fast track to cash flow: Accelerated underground development with minimal infrastructure.

o Reduced initial capital: US$35 million to start mining, no mill required.

o High grade material: Potential to ship 360,000 tonnes annually for the 5 year contract containing

on average 2.8 million lbs U3O8 grading 3,698 ppm

o Low cost mining: Minimizing operating costs, US$10.94 per lb U3O8 before transport and

processing, indicates this is potentially profitable at low uranium prices.

 The Company expects it could permit the Alternate Mining Strategy by Q4, 2019, with ramp development

beginning as early as 2020.

 Management also identified the following additional value o pportunities which are currently being

explored to improve overall project economics:

o Improve modelled uranium recovery with further metallurgical test work.

o Mine plan optimizations to reduce dilution and minimize underground development.

o Improve grade and increase Mineral Resources with further infill drilling.

o Value opportunities currently being explored are expected to be reflected in a n updated

Feasibility Study targeted for 2019.

Stephen G. Roman, President and CEO of Global Atomic, commented, “The DAS A uranium project is a Tier 1

project in a proven uranium mining jurisdiction where accelerated permitting is possible. The PEA demonstrates

the economic potential of the Project and our agreement with Orano allows us to pursue ways to fast track the

Project to early mining at current commodity prices.”

PEA SUMMARY

The PEA was completed by CSA Global Pty. Ltd. (“CSA Global”) with the objective to assess the economic and

technical viability of uranium production at DASA as an integrated operating facility to mine and recover a uranium

concentrate on the property, referred to as the DASA Standalone Scenario in this news release.

As a “value opportunity”, Global Atomic also requested CSA Global to study the Alternative Mining Strategy,

whereby the Company could achieve positive cash flow with minimal up front capital by selling mineralized rock

directly to Orano as per a Memorandum of Understanding the Company has with Orano and the Company

believes it represents a compelling case at current uranium prices.

Price Assumptions

A uranium price of US$50/lb U 3O8 was chosen for the PEA, consistent with the consensus long -term spot price

estimate as reported by industry analysts.

PEA Summary – DASA Standalone Scenario

Input Unit Value

Mineralized Material Processed Million tonnes 15.9

Extraction Ratio 85%

Dilution 34%

Mill Head Grade ppm 2,380

Mill Recovery 84.3%

Total Recovered Uranium Million lbs 69.1

Mine Life Years 15

Annual Tonnage (Phase 1 – First 6 Years) Ktpa 900

Average Annual Production (Phase 1) m lbs U3O8 7.0

Average Annual Production (Phase 2) m lbs U3O8 4.0

Capital Cost

Mine Development US$ M $49.5

Mill US$ M $141.2

Surface Infrastructure US$ M $45.4

Owner's Cost US$ M $8.7

Indirects/EPCM US$ M $11.1

Contingency (25%) US$ M $64.0

Total Construction Costs Incl. Contingency US$ M $319.9

Sustaining Capital Costs US$ M $137.2

Reclamation US$ M $10.0

Total Capital Costs US$ M $467.1

Operating Cost

Mining US$/lb $12.26

Processing US$/lb $10.80

Transport and Marketing US$/lb $1.50

G&A US$/lb $1.91

Total Operating Cost US$/lb $26.52

Sustaining Capital US$/lb $1.99

All In Sustaining Cost US$/lb $28.51

MINERAL RESOURCE

Deposit Overview

DASA is a high grade uranium deposit located in the Tim Mersoi Basin of Niger, a sedimentary basin host to a large

number of uranium deposits including Orano’s COMINAK and SOMAIR mines, which combined have produced

over 240 million pounds of historical production . Uranium mineralization in Niger is located exclusively in the

sandstone formations of the basin, however concentration and tonnage vary widely by deposit. DASA is unique

in that it contains significantly higher concentrations of uranium making it the highest grade project in the basin

and one of the highest grade deposits in the world.

Mineral Resource Estimate

A NI 43-101 Mineral Resource Estimate was prepared by CSA Global dated June 30, 2018 and filed on SEDAR.

Block modelling was based on the idea DASA would be mined as open pit to start , transitioning to underground

mining in subsequent years. During the PEA process , it was determined a more optimal approach was to start

ramping underground to the mineralized material. Opportunity exists to further refine the resource model that

could potentially improve the underground mining assumptions.

Mineral Resource Estimate

Category

Tonnes eU3O8 Contained

metal

Mt ppm Mlb

Indicated – Pit Constrained 7.08 3,251 50.8

Indicated – Underground 2.5 2,553 14.1

Total Indicated 9.59 3,068 64.8

Inferred – Pit Constrained 0.26 1,135 0.7

Inferred – Underground 8.18 2,647 47.7

Total Inferred 8.44 2,600 48.4

* These results are based on chemical assays and gamma probing using an Electomind DIL 1125 gamma

probe. Additional results will be released once chemical assaying is completed on the Fl ank Zone drill

holes currently at ALS Global in Vancouver, Canada.

1. Mineral Resources are based on CIM definitions and is reported as at 1st June 2018.

2. Mineral Resources for pit constrained resources are estimated within the limits of an ultimate pit shell

3. Mineral Resources for underground resources are estimated outside the limits of ultimate pit shell.

4. A cut-off grade of 320 ppm eU3O8 has been applied for pit constrained resources.

5. A cut-off grade of 1200 ppm eU3O8 has been applied for underground resources.

6. A bulk density of 2.36t/m3 has been applied for all model cells.

7. Rows and columns may not add up exactly due to rounding.

Grades were calculated using a comprehensive suite of chemical assays for all diamond core intervals above a cut-

off of 100 ppm (pre 2014) or 300 ppm (post 2014) as measured in down hole logging. This was calibrated against

the results of the down hole logging (which occurs in all drill holes) and found to have a very good correlation.

Based on this correlation representative cor rective adjustments were made in areas of the high grades where

sections of drill core were “saturated”. Chemical assays are currently being conducted at ALS Global in Vancouver,

British Columbia on the recently drilled Flank Zone holes which account for less than 10% of total drilling on the

project and will form part of the updated NI 43-101 resource to be published in a later technical report.

MINE PLAN

DASA Standalone Scenario

The PEA proposes the development of an underground mine using a sub-level bl ast-hole retreat and backfill

mining method. The mining method proposed includes the trackless short-hole development of the main decline,

ramps, strike and crosscut drives as primary and secondary accesses to mineralized material on a 24 metre sub-

level spacing and a 20 metre collection drive spacing. Standard trackless underground mining equipment is

proposed and will comprise electro -hydraulic face drilling rigs and support drilling rigs. Proposed material

handling equipment will comprise diesel powered 7 tonne loaders and 33 tonne trucks. Ancillary equipment will

consist of diesel powered modified charge -up vehicles, utility vehicles and other light vehicles . The long-hole

stoping operation proposed will utilise an electro -hydraulic long -hole produc tion jumbo capable of drilling

accurate holes up to 35 metres in a ring fired pattern and will be developed on a retreat basis. Blasted material

will be mucked using a tele -remote capable 7 tonne loader and loaded into either 33 tonne haul trucks or a

mucking bay. It is proposed that the depleted stopes will be backfilled using a combination of waste rock from

development, classified tailings and binding agents. Broken material will be transported via the ramp and main

decline system to surface in 33 tonne haul trucks for dumping at either ROM Pad crusher feed bin, surface

stockpile or waste dump storage facility.

The PEA considered spatial distribution of the mining areas based on grade distribution and determined a two

stage phased approach is optimal for mining the DASA resource:

 Stage 1 (Years 1 to 6): Optimize to grade by accessing high grade areas of the deposit as early as possible,

maintaining high grade, 4,000 ppm U3O8 feed, at 900 Ktpa mining rate. Blending of mineralized material

will be managed from stockpiles during this period to control feed grade to the processing plant.

 Stage 2 (Years 7+): Based on the current modelled resource, grades will be blended to provide a target

feed grade of 1,800 ppm U3O8 at a mining rate of 1,200 Ktpa to the process plant. As additional drilling is

completed, high grades areas may continue on strike and down dip.

Mineralization not included in the mine plan schedule is highlighted in grey in the following illustration. These

areas could be economic at a lower cu t-off grade and may be included as potentially mineable mineralization in

the future.

Mine Plan Schedule – 900 ppm Cut-Off

Considerations for the Alternate Mining Strategy Value Opportunity

In this scenario mining throughput is significantly reduced and the highest-grade stopes are mined first. Average

mining output is approximately 360 Ktpa and grade is similar to Stage 1 of mining in the DASA Standalone Scenario.

The initial ramp infrastructure to access the first stopes is the same as the PEA mine plan.

Comparison of Mine Throughput and Costs

Unit

Alternate

Mining

Strategy

DASA

Standalone

Stage 1

DASA

Standalone

Stage 2

Annual Mining Tonnage tonnes 360,000 900,000 1,200,000

Grade Mined ppm 3,698 3,790 1,784

ROM Annual Contained Uranium Mlbs U3O8 2.8 7.5 4.7

PROCESSING AND RECOVERY

The metallurgical work stream to support the PEA included comminution work, leach characteristics, settling tests

and mineralogy. Based on the work completed on the samples selected from the mineralized material and the

review of the performance during vario us tests and conditions, an acid leach/ resin-in-pulp flowsheet has been

suggested for the processing of the DASA deposit. The process plant has been sized to process 1.2 million tonnes

annually (3,500 tpd) and to recover up to 8 million lbs U 3O8 on an annual basis. The plant will be run from grid

power and will require 7 MW of installed capacity. Material processed in Stage 1 production (years 1 to 6) will be

limited to 900,000 tpa to support ~7 million lbs U3O8 product annually. Mineralised material processed in Stage 2

production (year 7 onward) will be limited to 1,200,000 tpa to support ~4 million lbs U3O8 product annually.

Mineralized material from the mine is crushed to 200mm and then milled to a particle size of 106um using a semi-

autogenous grinding mill (SAG). The slurry is pumped to a series of leach tanks where sulphuric acid is mixed with

the slurry to leach the uranium. The slurry is then pumped to the resin tanks w here the uranium in solution is

adsorbed onto the resin beads. Once the uranium has been adsorb ed onto the resin , the barren slurry is then

neutralized with lime and pumped to a tailings dam for storage.

The slurry resin mixture is then screened so the loaded resin can be collected into an elution column where the

uranium is removed or eluted off the resin using sulphuric acid. The acidic uranium rich solution is now pumped

to the refining stage where hydrogen peroxide is used to precipitate the uranium as final uranyl peroxide (UO4)

or ‘yellowcake’ product. The mixture is filtered, dried and packaged in drums for export.

Acid will be generated on site; an acid consumption rate of 120 Kg/t of material treated is assumed. Water will

be supplied by local boreholes.

Overall process recovery is modelled at 84.3% and is expected to improve with additional test work during the

Feasibility Study.

Process Flowsheet

CAPITAL COSTS

DASA Standalone Scenario

Mine development includes a 3,778 m long x 6.5 m wide x 4.5 m high ramp as the main decline. The ramp has

been sized to potentially support a future conveying system alongside vehicle access. If no conveying system is

needed, ramp dimensions will be reduced, a value opportunity that will be explored.

Power will be provided through exis ting electricity infrastructure. A cost of US$4.5 million is assumed for

connection to the grid which currently supplies power to Orano’s operations in Arlit.

Other surface infrastructure includes basic infrastructure (US$15.9 million), acid plant (US$10. 0 million), water

purification (US$5 million) and tailings facility (US$8.5 million).

A 25% contingency (US$64 million) was added to Total Construction Costs.

Total construction costs in the DASA Standalone Scenario are US$319.9 million, including contingencies.

Sustaining capital of US$137 million is added for provisioning of major equipment replacement and refurbishment.

These items will include mechanised mining equipment and major processing plant equipment components.

Alternate Mining Strategy, Mine Only

Capital costs reduce significantly to US$ 34.8 million, supporting a mine camp and critical surface infrastructure

required to begin mineralized rock shipments off-site. Mine development is assumed to be completed by contract

mining and allocated as an operating expense.

The following table provides a comparison of costs under each scenario:

Capital Costs Alternate Mining Strategy Vs. DASA Standalone Scenario

Alternate Mining

Strategy (M US$)

DASA Standalone

Scenario (M US$)

Mine Development(1) $16.0 $49.5

Mill $0.0 $141.2

Surface Infrastructure $14.9 $45.4

Owner's Cost $0.3 $8.7

Indirects/EPCM $0.4 $11.1

Contingency $3.1 $64.0

Total Construction Costs $34.8 $319.9

Sustaining Capital Costs $2.5 $137.2

Reclamation Costs - $10.0

Total Capital Costs $37.3 $467.1

(1) Under the Alternate Mining Strategy, all mine development costs are expensed as incurred after the initial

year. Approximately $16 million such development costs are incurred prior to mining.

OPERATING COSTS

DASA Standalone Scenario

Mining costs of US$12.2 6 per lb U 3O8 (US$53.25/t) are based on an owner operator model . Ramp and access

development is capitalized prior to initial production and expensed as a component of operating costs thereafter.

Process costs are calculated to be $10.80 /lb based on US$46.92 per tonne of material treated with the largest

consumable being reagents. The processing facility will be operated and maintained by a staff of 150 people and

work on 2 x 12 hour shifts, 365 days a year.

Processing Cost Breakdown

Costs for G&A include a 150 person camp and facilities.

Cash operating cost totals US$26.52/lb U3O8 (US$114.96/t). Including sustaining capital, AISC totals US$28.51/lb

U3O8 (US$123.59/t).

Labour

4% Power

11%

Reagents

66%

Maintenance

allowance

13%

Laboratory

1%

Miscellaneou

s

2%

Acid Plant

Operation

3%