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Corporate: Financing – Private Placement

• On July 23, 2024, Global Atomic announced a non-brokered private placement (the "Offering") for gross proceeds of up to C$15 million from the sale of up to 11,111,111 units of the Company (each, a "Unit") at a price of C$1.35 per Unit.

• On July 24, 2024, the Company increased the maximum gross proceeds of the Offering from C$15 million to C$20 million. Under the revised Offering, the Company sold 14,814,815 Units at a price of C$1.35 per Unit.

• Each Unit consists of one common share of the Company (each, a "Common Share") and one Common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of C$1.80 for a period of 24 months following the issue date.

• The Warrants are subject to an acceleration clause whereby if (i) the 10-day volume weighted average price of the Common Shares is above C$2.50 and, (ii) within a period of 5 trading days following the date the Company provides a notice via widely disseminated press release, the expiry date of the Warrants shall be accelerated to the date that is 30 days from the date of the aforementioned press release.

• The Company intends to use the net proceeds from the Offering for the advancement of the Company's Dasa Project and for general working capital purposes.

• The Offering closed on July 31, 2024.

Corporate

• Global Atomic received $305,000 in quarterly management fees and monthly sales commissions from the Turkish JV ($202,000 in Q2 2023), helping to offset corporate overhead costs.

• The cash balance as of June 30, 2024, was $1.9 million. Subsequent to the end of the quarter, the Company raised C$20 million of gross proceeds under a private placement.

Global Atomic President and CEO, Stephen G. Roman commented, "We continue to make significant progress at our Dasa Uranium Project, currently employing over 450 people at site and expecting to increase that number to 900 once plant construction is in full swing.  We have an excellent relationship with the government and have the support of their entire cabinet, as they appreciate the jobs and economic benefit that Dasa will create for Niger."

"As for project financing, the recent C$20 million private placement has allowed continued advancement of the project while the U.S. development bank moves our debt financing facility through its approval process.   Although the bank postponed their July presentation of our Project to their credit committee, we remain confident that the bank will eventually approve our Project.  Should the bank further delay their approval, we will move to finalize other financing discussions, which include minority JV partners and pre-payments tied to uranium offtake."

"The Dasa Project is unique as the highest-grade uranium project in Africa and the only greenfield uranium project being actively developed today.  With an IRR of 57% at a uranium price of $75 per pound, this project is compelling, and the economic returns will only improve as we move closer to production in 2026.  This project will get funded and will get built."

OUTLOOK

Dasa Uranium Project

• Continue development of the underground ore access drifts and ramp to lower levels to remain on schedule to supply uranium ore to the processing plant from the end of 2025.

• Scheduled additions to the in-country construction team will increase the site complement from 450 to approximately 900 workers.

• In Q3 2024, our Bank Syndicate is expected to approve the Debt Financing facility for the construction of the Dasa Project. In the event of potential further delays in the approval of this facility, the Company is actively considering funding options and advancing several options in parallel to determine the preferred funding structure.

• Complete final engineering, site development and civil works for the Dasa processing plant and begin installation of equipment.

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

Turkish Zinc Joint Venture

• The Company anticipates operations at its Turkish JV will be profitable in 2024 due to a return to usual local steel mill production levels, a recovery in zinc prices this past quarter and lower input prices.

COMPARATIVE RESULTS

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

 

The condensed interim 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.

Uranium Business

Niger Mining Company

On December 23, 2020, GAFC was granted a Mining Permit for the Dasa Project on behalf of a Niger mining company to be incorporated. The Mining Permit is valid for an initial term of 10 years and is renewable for successive five-year terms until the resource is depleted. The Company's Niger mining subsidiary, Société Minière de DASA S.A. ("SOMIDA") was incorporated on August 11, 2022. In accordance with the mining agreement signed by GAFC and the Republic of Niger on September 25, 2007, the latter received a 10% free carried interest in the mining subsidiary and exercised its right to subscribe for an additional 10%, resulting in a total ownership of 20% of the shares of SOMIDA. 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.

Niger Political Situation

With the exception of logistics delays, project development has not been affected by the political developments since July 2023. The government is very supportive and at a recent site visit, the Mines Minister; Commissaire Colonel Ousmane Abarchi stated "We came here, we visited the mine, and we launched the earth breaking operations for the mill construction. Dasa is a reality everyone can see.  We thank you all. We are supportive of the SOMIDA team and Global Atomic. This project is very important for us; as a government and as a shareholder. We want Dasa to be the start of new Niger mining practice with expectations on State Income, Employment and Environment management."

Project Development Schedule

Mine development activities at the Dasa Project have been underway since November 2022. The current mine plan has been developed to coincide with the start-up of the processing plant at the beginning of 2026, with a target surface stockpile of 2 to 3 months production available for the processing plant at any time. Long lead equipment purchases have been made and detailed engineering is well advanced. Although some earthworks projects have been undertaken by SOMIDA and its staff over the past year, full-scale earthworks have been contracted out and commenced in May. Civils works will follow, and processing plant equipment will begin arriving at site in Q4 2024. Erection of the processing plant and site infrastructure will take place from Q4 2024 through Q4 2025, with hot commissioning completed by January 2026. Processing of ore through the plant is expected to begin in January 2026.

Project Financing

The Company has been advancing Project Financing. On October 10, 2023, the Company announced that because of the Coup d'Etat designation of the situation in Niger by the U.S. Government, the U.S. development bank would temporarily put the project financing on hold. The Company was subsequently advised that the U.S. Government expressed support for the Dasa Project, and the U.S. development bank was authorized to re-engage with the Company. The review and finalization of credit committee documentation is on-going with target credit committee approval and final Board approval in Q4 2024 and documentation thereafter. It is expected that the project financing will provide 60% of the total project costs plus 50% of the cost overrun facility.

The Company is also in discussions with alternative financing sources that are available. Such parallel discussions will continue so that alternative financing is available in case the banks further delay their approval process or choose not to proceed.

Turkish Zinc JV EAFD Operations

Global Atomic holds a 49% interest in Befesa Silvermet Turkey, S.L. ("BST" or the "Turkish JV") which owns and operates an EAFD processing plant in Iskenderun, Türkiye. The plant processes EAFD containing 25% to 30% zinc that is obtained from electric arc steel mills, and produces a zinc concentrate grading 65% to 68% zinc that is then sold to zinc smelters. The Company's investment is accounted for using the equity basis of accounting.  Under this basis of accounting, the Company's share of the BST's earnings is shown as a single line in its Consolidated Statements of Income (Loss).

The following table summarizes comparative results for three and six months ended June 30, 2024 and 2023 of the Turkish JV at 100%:

The Turkish JV realized significant growth in revenues during three and six months ended June 2024 compared to 2023. Operations in H1 2023 were adversely affected by significant earthquakes in Türkiye.  In H1 2024, the Turkish JV sold 16.6 million pounds of zinc concentrate, increase from the 13.7 million pounds sold in the corresponding period last year. Despite a decline in the average monthly LME zinc price, which decreased to US$1.21 per pound in H1 2024 from US$1.29 per pound in H1 2023, the profit margin experienced a positive impact primarily attributed to reduced unit costs in EAFD and coking coal, resulting in a favorable EBITDA.

The cash balance of the Turkish Zinc JV was US$5.1 million at June 30, 2024.

The following table summarizes comparative operational metrics of the Iskenderun facility.

Qualified Person

The scientific and technical disclosures in this Management's Discussion and Analysis have been extracted from the 2024 Feasibility Study, which was reviewed and approved by Dmitry Pertel, M.Sc., MAIG, John Edwards, B.Sc. Hons., FSAIMM, Andrew Pooley, B. Eng (Hons)., FSAIMM who are "qualified persons" under National Instrument 43-101 – Standards of Disclosure for Mineral Properties.

About Global Atomic

Global Atomic Corporation (www.globalatomiccorp.com) is a publicly listed company that provides a unique combination of high-grade uranium mine development and cash-flowing zinc concentrate production.

The Company's Uranium Division is currently developing the fully permitted, large, high grade Dasa Deposit, discovered in 2010 by Global Atomic geologists through grassroots field exploration. The "First Blast Ceremony" occurred on November 5, 2022, and commissioning of the processing plant is scheduled for Q1, 2026. Global Atomic has also identified 3 additional uranium deposits in Niger that will be advanced with further assessment work.

Global Atomic's Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a modern zinc recycling plant, located in Iskenderun, Türkiye. The plant recovers zinc from Electric Arc Furnace Dust (EAFD) to produce a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company's joint venture partner, Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the operator of the BST Joint Venture. Befesa is a market leader in EAFD recycling, with approximately 50% of the European EAFD market and facilities located throughout Europe, Asia and the United States of America.

The information in this release may contain forward-looking information under applicable securities laws.  Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomics' development potential and timetable of its operations, development and exploration assets; Global Atomics' ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; cost of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks.   Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "is expected", "estimates", variations of such words and  phrases or statements that certain actions, events or results "could", "would", "might", "will be taken", "will begin", "will include", "are expected", "occur" or "be achieved".  All information contained in this news release, other than statements of current or historical fact, is forward-looking information.   Statements of forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.

Forward-looking statements are based on the opinions and estimates of management at the date such statements are made.  Although management of Global Atomic has attempted to identify important factors that could cause actual results to be materially different from those forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance upon forward-looking statements.  Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities law.  Readers should also review the risks and uncertainties sections of Global Atomics' annual and interim MD&As.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release.

SOURCE Global Atomic Corporation

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