GLO.TO · 2023-08-10 12:00:00

Global Atomic Announces Q2 2023 Results and Provides Republic of Niger Update

Financials

NEWS RELEASE

Global Atomic Announces Q2 2023 Results and

Provides Republic of Niger Update

Toronto, ON, August 10, 2023: Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX:

GLO, OTCQX: GLATF, FRANKFURT: G12) announced today its operating and financial results for the

three and six months ended June 30, 2023.

Global Atomic President and CEO, Stephen G. Roman commented “During Q2 2023, we took significant

strides to advance the Dasa Project towards production. The mining team has extended the access ramp

to reach the Dasa orebody as laid out in the Feasibility Study. Detailed engineering is nearing completion

and long-lead equipment was ordered. Site preparation for the installation of this equipment began during

the quarter.”

“Subsequent to the end of the quarter, on July 26, 2023, the military in Niger placed President Mohamed

Bazoum under house arrest and have assumed day -to-day operation of the Government. While the

situation in Niger remains fluid, the Country remains relatively calm. Importantly, our people remain safe

and normal business is being conducted at our offices and development of the Dasa Project continues.”

“Positive developments today include the appointment of a new civilian-military coalition cabinet and all

the new Ministers who will run the Government. A new Prime Minister, Mr. Ali Mahaman Lamine Zeine,

was announced this week. Mr. Zeine w as formerly the Minister of Finance for Niger and also served as

the resident representative of the African Development Bank (AfDB) in Chad, Côte d’Ivoire, and Gabon.”

“The newly appointed Energy, Mines and Petroleum Minister, Mr. Mahaman Moustapha Barké, who was

formerly the head of the Niger Uranium company, SOPAMIN, was appointed today. This will now enable

SOMIDA personnel to resume dialogue with the Mines Ministry to confirm their support for the Dasa

Project. In addition, land borders are reopening. We expect the movement of goods and services will

resume in due course. The Head of ECO WAS has also announced diplomatic discussions would

continue to resolve issues and use of military force would be a last resort.”

“Our Banking Syndicate are continuing to work on finalising the Project Financing Term Sheet. We are

reviewing our development schedule in light of current circumstances and conserving cash in the interim

while maintaining essential engineering work on the Dasa Project.”

HIGHLIGHTS

Dasa Uranium Project

 Ramp development has been underway since the beginning of 2023, with over 600 metres completed

as of the end of July 2023. Excavation of mining level access has begun as part of the Phase 1 Mine

Plan.

 Additional mining equipment has arrived in Niger and is being shipped to the project site.

 Surface and underground mine infrastructure including mine dry, ventilation infrastructure, electrical

and plumbing installations are currently underway.

 To prepare for civil engineering and the pouring of cement related to the Processing Plant, earthworks

began in Q2 2023.

 On May 8, 2023, the Company formalized its June 2022 Letter of Intent by signing a D efinitive

Agreement with a second major North American utility for their procurement of up to 2.1 million

pounds U3O8 from Dasa within a multi-year delivery window beginning in 2025.

Turkish Zinc Joint Venture

 The Turkish Zinc Joint Venture (“BST” or the “Turkish JV”) plant processed 17,233 tonnes EAFD in

Q2 2023 as it resumed operations following the significant earthquakes earlier in the year.

 The zinc contained in concentrate shipments was 10.1 million pounds and the average monthly LME

zinc price was US$1.15/lb in Q2 2023.

 The Company’s share of the Turkish JV EBITDA was a loss of $1.4 million in Q2 2023 ($2.5 million

gain in Q2 2022).

 The revolving credit facility of the Turkish JV was US$12.2 million as of the end of Q2 2023 (Global

Atomic share – US$6 million).

 The cash balance of the Turkish JV was US$1.6 million as of the end of Q2 2023.

Corporate

 Global Atomic continues to receive quarterly management fees and monthly sales commissions from

the Turkish JV ($202,000 in Q2 2023 compared to $398,000 in Q2 2022), helping to offset corporate

overhead costs.

 Cash balance as of June 30, 2023, was $35.4 million.

SUBSEQUENT EVENTS

On July 26, 2023, the Presidential Guard division of the Niger military placed the President of Niger under

house arrest and have assumed day-to-day operation of the Government. As of the date hereof, a new

cabinet has been appointed comprised of both civilian and military personnel. The country’s borders were

closed temporarily. Certain land borders have now reopened. SOMIDA’s operations in Niamey and at

the Dasa Mine site have not been impacted to date, except for delays in receipt of mine consumable

supplies and other shipments from outside Niger.

In view of current circumstances in Niger, the Company has assessed project development options to

conserve cash until the political situation stabilizes and full-scale operations can resume. The Company

has developed a contingency plan to include the completion of detailed engineering and procurement

contracts as well as an updated Feasibility Study based on the results from the May 2023 Mineral

Resource Estimate (“MRE”), an updated mine plan using current U308 pricing.

At present, the Company estimates the contingency plan could delay commissioning of the P rocessing

Plant by 6 to 12 months. To match the delivery of ore from mining activities with startup of the Processing

Plant, the Company would defer continued development of the underground mine workings which are

now ahead of schedule. The plan will be to have an ore stockpile on surface prior to mill commissioning.

OUTLOOK

Dasa Uranium Project

Given the current political situation in Niger, the construction schedule of the Dasa Project is under review

with the Company’s business partners and banking syndicate. The outcome of that review may impact

timelines to construct the Processing Plant at the Dasa Mine. Further details will be provided once the

review is complete.

Turkish Zinc Joint Venture

 The Electric Arc Furnace Dust (“EAFD”) recycling plant is expected to operate at full capacity through

to the end of Q3 2023 and the Turkish JV is expected to return to profitability in Q4 of this year.

GLOBAL ATOMIC CORPORATION COMPARATIVE RESULTS

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

(all amounts in C$) 2023 2022 2023 2022

Revenues 202,273$ 397,862$ 333,114$ 829,978$

General and administration 1,806,321 1,856,994 4,639,152 5,033,228

Share of equity loss (earnings) 3,547,248 (1,095,964) 4,935,522 (2,529,301)

Other expense - (15,076) - 591,635

Finance income (533,660) (13,321) (605,128) (43,138)

Foreign exchange loss 1,603,390 (113,508) 2,814,106 67,413

Net loss (6,221,026)$ (221,263)$ (11,450,538)$ (2,289,859)$

Net loss attributable to:

Shareholders of the Company (6,238,148) (221,263) (11,475,811) (2,289,859)

Non-controlling interests 17,122 - 25,273 -

Other comprehensive income (loss) (5,517,775)$ (2,287,301)$ (2,798,999)$ (4,535,985)$

Comprehensive loss (11,738,801)$ (2,508,564)$ (14,249,537)$ (6,825,844)$

Comprehensive loss attributable to:

Shareholders of the Company (11,737,518) (2,508,564) (14,255,736) (6,825,844)

Non-controlling interests (1,283) - 6,199 -

Basic and diluted net loss per share ($0.03) ($0.00) ($0.06) ($0.01)

Basic weighted-average

number of shares outstanding 202,128,857 177, 036,594 193,404,462 175,963,295

Diluted weighted-average

number of shares outstanding 202,128,857 177, 036,594 193,404,462 175,963,295

June 30, December 31,

2023 2022

Cash 35,373,754$ 8,400,008$

Property, plant and equipment 110,104,741 82,234,716

Exploration & evaluation assets 1,206,821 1,115,983

Investment in joint venture 8,791,236 16,387,040

Other assets 4,450,555 2,118,258

Total assets 159,927,107$ 110,256,005$

Total liabilities 17,394,635$ 8,746,681$

Total equity 142,532,472$ 101,509,324$

Three months ended June 30, Six months ended June 30,

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. See also the commentary above under “Turkish Zinc EAFD Operations.”

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.

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

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

fees, audit, legal, accounting, tax and consultants’ costs, 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 JV. In view of limited production, lower zinc prices in 2023, significant increases in expenses,

devaluation of the Turkish Lira resulting in a negative equity income of $3.5 million in Q2 2023 and $4.9

million in H1 2023.

URANIUM BUSINESS

On May 23, 2023, the Company announced an updated mineral resource estimate for the Dasa Project.

The new mineral resource estimate incorporates drill, probe and chemical assay data compiled from an

extensive 16,000-meter drill program initiated in September 2021 that focused on infill drilling to upgrade

Inferred Resources to the higher resource classification of Indicated to allow these resources to be

included in an updated mine plan and mineral reserve. In addition, all geotechnical data derived from

drill core was incorporated. The current basis for production plans at the Dasa Project, remains the

mineral reserve disclosed in the 2021 Dasa Technical Report . The Company plans to update the

Technical Report with the new resource information and will disclose any revisions to that mineral reserve

or to the mine plan, including in a material change report.

Unlike the 2019 mineral resource estimate, as set out in the Dasa Technical Report, the new mineral

resource estimate is focused solely on an underground mine model and does not include open pit

modelling of near surface mineralization. As shown in the table below, this had the effect of increasing

tonnage with varying impact on grade depending upon the applied cut-off grade. The Indicated Resource

using a cut-off grade of 1,500 ppm eU3O8, has increased by 50%:

May 2023 Revised Estimate July 2019 Estimate % Change

Cut-Off

Grade