Mr. Stephen Roman reports

GLOBAL ATOMIC ANNOUNCES Q3 2023 RESULTS, PROVIDES CORPORATE UPDATE AND RE-ENGAGEMENT BY DEVELOPMENT BANKS

Global Atomic Corp. has released its operating and financial results for the three and nine months ended Sept. 30, 2023.

Stephen G. Roman, Global Atomic's president and chief executive officer, commented: "Further to our Q2 2023 update regarding the Republic of Niger, a transition government is in place and includes a new prime minister and cabinet, as well as the previous experienced staff in the government ministries. The government of Niger is a 20-per-cent owner of the Dasa project, and recognizes that the Dasa mine will benefit the Republic of Niger by generating royalty and tax revenue, creating new jobs and opportunities for local business, and revitalize the northern region of the country. The government has offered its positive support for the development of the Dasa project.

"The continued closure of Niger's border with Benin has impacted operations at Dasa. We have, however, successfully initiated an alternate supply route through the port of Lome in Togo and then through neighbouring Burkina Faso. Once assurance of mine supplies is deemed reliable we will resume underground development.

"Relating to the project financing, and pursuant to our news release dated Oct. 10, 2023, the official designation by the U.S. government of the change of government in July as a coup would put a temporary hold on U.S. Development Bank financing, pending visibility of a return to democratic elections. We are pleased to report that the U.S. government has expressed support for the project financing to proceed, and both development banks have been authorized to re-engage with the company and finalize funding arrangements. At the same time, we are actively assessing viable alternatives to both the supply issue and the project funding.

"The nuclear renaissance continues, with more countries signing on to build reactors, including many orders for small modular reactors (SMRs). Uranium supply growth will continue to be limited to a small number of restarts, a few in situ leach (ISL) projects and Dasa, which is the only greenfield uranium mine currently under development. The company's existing Yellowcake offtake agreements remain firmly in place. Dasa's orebody is the highest-grade uranium deposit in Africa, and, based on our recently announced increase in our mineral resource estimate, we are revising Dasa's mine plan and phase 1 feasibility study, which is expected to significantly increase minable reserves and further improve the economics of the project."

Highlights and outlook

Dasa uranium project

Niger political situation:

• The Niger military initiated a change in government on July 26, 2023.
• The initial reaction included the closure of surrounding borders and Niger air space, as well as discussion of military intervention by the Economic Community of African States (ECOWAS), which has not occurred and is considered unlikely.
• Niger air space reopened, with international flights resuming operations.
• All land borders have been reopened except for Benin and Nigeria.
• The government of Niger has confirmed its support of the Dasa project and for SOMIDA to proceed on schedule.
• On Oct. 10, 2023, the United States formally recognized the coup d'etat, which designation restricts funding of the interim government to certain humanitarian aid.
• Since then, the U.S. Senate voted overwhelmingly to support continued U.S. military presence in Niger.
• Recently, 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, which is suggested to be within two years.

Dasa -- financing:

• The company estimates it requires an additional $250-million (U.S.) to $275-million (U.S.) financing to complete the Dasa project construction and commissioning, excluding financing costs.
• The company has been working with Export Development Canada and a United States development bank to put a project financing in place.
• With the change of government designated a coup d'etat by the U.S. in October, the company was advised the project financing would be placed on hold, pending a resolution of the Niger political situation.
• Subsequently, the U.S. government has expressed support for the project financing and both banks are continuing to proceed.
• The company is well advanced in negotiating a term sheet and expects this to be concluded shortly.
• With the re-engagement of the development banks, the schedule for project financing is targeted for credit committee approval in January, followed by final approval in March, 2024.
• In view of the uncertainties about the timing of completion of a project financing, the company has commenced a process to review alternative financing options.
• The ability to achieve the target project completion date of the end of 2025 depends on the company's ability to raise sufficient financing over time to keep the project moving forward on this schedule.
• In the alternative scenario in which no financing is available from any source, the company has developed near-term objectives, which include completion of procurement of equipment and service contracts, obtaining engineering from selected vendors, completing detailed engineering with vendor engineering information, and completing an updated feasibility study using its existing cash.
• Management will continue to work toward a completion of the debt facility, while evaluating alternative financing options that support a financing decision in the best interests of shareholders.

Dasa -- mining:

• Ramp development has been under way since the beginning of 2023, with over 600 metres completed as of the end of July, 2023, to reach the top of the orebody.
• In August, 2023, the company suspended mine development due to the interruptions of supply chains and depletion of certain consumables.
• The closure of the Benin border has interrupted the normal supply route from the Port of Cotonou through Benin to Niger.
• The Niger government has been working with the Burkina Faso government to establish regular convoys of trucks to deliver supplies from the port of Lome in Togo, and overland through Burkina Faso.
• The company is currently utilizing this logistics route and will restart underground mine development once assurance of mine supplies is deemed reliable.
• The company is also exploring the potential logistics route from the Mediterranean through Algeria.
• Although mine development is on temporary hold, the company remains on schedule to supply uranium ore to the processing plant from the end of 2025 onward.
• The company's engineering team is nearing completion of a new mine plan that will integrate the recently updated MRE (mineral resource estimate), and updated capital and operating costs.
• In view of the significant increase in indicated resources (50 per cent at a 1,500 parts per million (ppm) cut-off), it is expected that the reserves previously reported in the feasibility study of 2021 and the life of mine (LOM) will increase significantly.
• The company is undertaking an updated feasibility study to be completed in H1 2024, so that such increases can be defined and reported to shareholders and investors.

Dasa -- team:

• The company added two key members to the Dasa management team: John Wheeler, director of operations and site general manager, and Daniele Valentino, deputy director of operations and assistant general manager.
• Mr. Wheeler is a member of Engineers Australia, having spent the past 13 years in the mining industry in project management roles and, most recently, as general manager of Resolute Mining's Syama mine sites in Mali. Prior to this, Mr. Wheeler spent 18 years in the Royal Australian Navy and defence industry.
• Ms. Valentino is a PhD engineer with a specialty in rock mechanics, having spent the past five years working for Orano Mining (previously known as Areva), including the position of deputy production manager and underground mine manager at the Cominak mine in Niger prior to its closure. Before that, Ms. Valentino had spent 18 years in the mining industry in Italy.

Offtake agreements:

• In January, 2023, the company formalized an agreement with a major North American utility for the procurement of Dasa's uranium, representing the supply of 2.4 million pounds U3O8 (triuranium octoxide) over a six-year period commencing in 2025.
• On May 8, 2023, the company formalized its June, 2022, letter of intent by signing a definitive agreement with a second major North American utility for its procurement of up to 2.1 million pounds U3O8 from Dasa within a multiyear delivery window beginning in 2025.
• On Oct. 2, 2023, the company received a letter of intent for the procurement of uranium from the company's Dasa project, representing the supply of up to 3.5 million pounds U3O8 within a multiyear delivery window beginning in 2026.
• Offtake agreements now total 1.3 million pounds U3O8 per year for the first five years of mining, providing the company with the ability to repay project construction loans while maintaining leverage to a firming U3O8 price.

Ore sales arrangement:

• The company signed a letter of intent with Orano in 2017, regarding delivery of Dasa ore to the Somair plant in Arlit.
• The intent was to develop the underground mine rapidly so that ore could be shipped to Orano's Somair processing plant according to a schedule proposed by Orano.
• The company has concluded that a final agreement with Orano is not forthcoming and, accordingly, has excluded early ore shipments from its current planning.

Project development schedule:

• The company has experienced delays in logistics due to the political situation in Niger.
• Combined with certain delays experienced with engineering and procurement, the commissioning date of the process plant is now forecast for the end of 2025.
• The mine plan is currently being updated to incorporate additional indicated resources pursuant to the company's updated mineral resource estimate of May, 2023.
• The current plan is to provide ore to the processing plant from the end of 2025.

Turkish zinc joint venture:

• The Turkish zinc joint venture (BST) plant processed 21,197 tonnes EAFD (electric arc furnace dust) in Q3 2023, as it resumed operations following the significant earthquakes earlier in the year.
• The zinc contained in concentrate shipments was 4.1 million pounds and the average monthly LME (London Metal Exchange) zinc price was $1.10 (U.S.)/lb (pound) in Q3 2023.
• The company's share of the Turkish JV EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $1.9-million in Q3 2023 ($1.7-million loss in Q3 2022).
• The revolving credit facility of the Turkish JV was $11.8-million (U.S.) as of the end of Q3 2023 (Global Atomic share -- $5.8-million (U.S.)).
• The cash balance of the Turkish JV was $1.5-million (U.S.) as of the end of Q3 2023.
• It is expected that the Turkish JV will operate at full capacity through to the end of 2023.
• It is also expected that the Turkish JV will return to profitability in 2024, with the normalization of the cost of the EAFD and coking coal used to produce the zinc oxide concentrate.

Corporate:

• Global Atomic continues to receive quarterly management fees and monthly sales commissions from the Turkish JV ($166,000 in Q3 2023, compared with $209,000 in Q3 2022), helping to offset corporate overhead costs.
• Cash balance as of Sept. 30, 2023, was $23.5-million.

Global Atomic comparative results

The associated table summarizes comparative results of operations of the company.

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.

About Global Atomic Corp.

Global Atomic 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 includes four deposits with the flagship project being the large, high-grade Dasa project, discovered in 2010 by Global Atomic geologists through grassroots field exploration. With the issuance of the Dasa mining permit and an environmental compliance certificate by the Republic of Niger, the Dasa project is fully permitted for commercial production. The phase 1 feasibility study for Dasa was filed in December, 2021, and estimates yellowcake delivery to utilities to commence in 2025. Mine excavation began in Q1 2022.

Global Atomic's base metals division holds a 49-per-cent interest in the Befesa Silvermet Turkey SL (BST) joint venture, which operates a modern zinc production plant, located in Iskenderun, Turkey. The plant recovers zinc from electric arc furnace dust 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 SAU, holds a 51-per-cent interest in and is the operator of the BST joint venture. Befesa is a market leader in EAFD recycling, with approximately 50 per cent of the European EAFD market and facilities located throughout Europe, Asia and the United States.

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