Mr. Stephen Roman reports

GLOBAL ATOMIC UPDATES ITS DASA PROJECT FEASIBILITY STUDY AND ANNOUNCES OFF-TAKE AGREEMENT

Global Atomic Corp. has released the results of the updated Dasa project feasibility study replacing the previous phase 1 feasibility study.

All monetary amounts are in U.S. dollars, unless otherwise indicated.

The 2024 Study has extended the Dasa Mine Life from 12 to 23 years, Mineral Reserves have increased by 50 per cent to 73 million pounds U3O8, and uranium production from Dasa has increased by 55 per cent to 68.1 million pounds.

Highlights

Table1 below compares the metrics of the 2024 Study to the Phase 1 Study:

Stephen G. Roman, President and CEO commented, "The 2024 Study has identified significant improvements in the Dasa Project from the Phase 1 Feasibility Study including a 50 per cent increase in Mineable Reserves and a near doubling of the mine life. The payback period estimated in the 2024 Study is expected to be 2.5 years, including recovery of amounts already spent."

"With several layers of contingency built into the 2024 Study, we believe that the estimated returns are conservative providing numerous opportunities to add value. For example, there are 51.4 million pounds of Inferred Resources grading at 5,243 ppm in the Dasa deposit that could be converted to the Indicated category and brought into the mine plan. We expect to have full project financing in place soon and are on track for plant construction to commence in the second half of 2024 and plant commissioning to occur at the end of 2025."

The Dasa Project is defined in three Phases, with the Phase 1 comprising the shallow high-grade Fank Zone, Phase 2 comprising several ore bearing zones at lower depths and the Phase 3 surface mineralization that could be mined as an open pit. See figure 1 below.

The 16,000-meter drill program conducted during 2021/22 resulted in significant resource conversion from Inferred to Indicated. The previous 2019 MRE had been based on both an open pit and underground mine, while the current MRE is based solely on an underground mine. The MRE was revised in a news release dated May 23, 2023.

Figure 2 below shows the resource categories delineated by the 2023 MRE, which includes results of the 16,000 metres of drilling, most of which was infill and at a 1,500-ppm cutoff grade increased Indicated Resources by 50 per cent from the 2019 MRE.

In figure 2 above, Inferred Resources are delineated in yellow and represent 51.4 million pounds which will be targeted in future drilling programs with the intention of converting these to Indicated Resources and converted to Mineral Reserves in the next feasibility study. The Dasa ore body also remains open down dip and along strike. The company has delineated three other deposits in Niger which could eventually feed the Dasa processing plant.

The new MRE was calculated by AMC Consultants, ("AMC"), of Perth, Western Australia.

The 2024 Study has estimated the current reserves for the Dasa Project to be:

Economics

The 2024 Study was completed by METC Engineering Pty Ltd. ("METC"), who also completed the Phase 1 Study.

The economic analysis for the 2024 Study was done with a discounted cash flow ("DCF") model based on a uranium price of $75 per pound U3O8. Sensitivity analysis was applied at intervals from $60 per pound to $105 per pound, as shown in Table 4 below.

The DCF includes the current tax regime and royalty requirements in Niger. Net present value ("NPV") figures are calculated using a range of discount rates as shown in Table 5. The discount rate used for the base-case analysis is 8 per cent ("NPV8"). NPV is based on discounting to commissioning date, January 1, 2026, less undiscounted remaining capital costs.

Processing

The process plant has been designed for a throughput of 1,200 tonnes per day. Long lead equipment has been purchased with delivery expected late summer through the fall of 2024. In view of the on-site construction schedule, cold commissioning is expected to be complete in Q4 2025 and hot commissioning beginning in early 2026. Procurement and construction of supporting infrastructure is underway. The processing plant recovery is forecast to be 94.15 per cent in steady state.

Additional Project Costs

In the Phase 1 Study, development and commissioning of the mine and processing plant were projected over 16 and 19 months, respectively, with costs integrated into the ongoing capital. The 2024 Study revises this timeline, extending mine development from 2022 through the end of 2025, a total of 48 months, to align with the processing plant's commissioning schedule. This adjustment results in more comprehensive development work and, consequently, an increase in cumulative costs, including a rise in owners' and indirect expenses due to the extended development phase.

Some of the key capital cost increases are due to the following:

Extended support for site and Niamey staff over 48 months, a $22 million increase.

Prolonged mine development period contributing an additional $36 million.

Enhanced EPCM and project team expenses due to increased complexity and extended duration, for an extra $12 million.

Shift from a power purchase agreement to a grid connection with Dasa having its own power station, adding $20 million in upfront capital.

A larger mine camp increases costs by $8 million.

Additional site support buildings necessary for an extended mine life, adding $21 million.

Contingencies

The 2024 Feasibility Study incorporates a range of contingencies to address potential risks and uncertainties. These provisions ensure the project's resilience and flexibility, safeguarding against unforeseen events and enabling adaptive responses to market fluctuations and operational challenges. By proactively integrating these measures, the study underscores our commitment to project viability and stakeholder confidence.

Due to slower transport via the port of Lome in Togo through Burkina Faso, project timelines have been extended by 1.5 months. Utilizing the Cotonou route will eliminate additional site and Niamey costs and advance the Project delivery timelines.

Power costs are carried at an average cost of $0.26/kwh over the production period. As power requirements ramp up over the first 5 years, the power source mix of grid connection and our own power station should result in lower costs.

Local contractors have been identified for site development and construction. The 2024 Study assumes international construction contractors for all site work which would result in higher costs.

Reagent costs for the mill are assumed to be transported through the Togo - Burkina Faso rather than the traditional route via the port of Cotonou in Benin.

Initial capital costs include a general contingency provision of 12 per cent for the mill and infrastructure.

A 15 per cent contingency has been included for all mine development and capital costs.

The mill has been designed for 1,200 tonnes per day throughput, however cash flows for the 2014 Study are based on 1,000 tonnes per day. If plant availability is 92 per cent, similar to the experience of other Niger uranium mills, fixed costs for the mill and infrastructure will be reduced.

Mine dilution has been increased to 10 per cent in the 2024 Study compared to 5 per cent in the Phase 1 Study. The additional tonnes are therefore processed at cost of $210/tonne.

Value Opportunities

Global Atomic is poised to enhance the Dasa Project's value through strategic infill drilling targeting the 51.4 million pounds of high-grade Inferred Resources. This initiative, set to commence in Q3 2024 from both underground and surface positions, aims to elevate mineable grades post-2038 and extend the mine's operational life beyond 2048. Additionally, exploration drilling will seek to expand the deposit further, leveraging its open at depth and on - strike potential.

Power costs account for 28 per cent of cash costs, up from 22 per cent in the Phase 1 Study. Cash costs during the first 12 years have increased from $15.72/lb to $20.34/lb. The cost of a kilowatt of power has increased by 50 per cent since the Phase 1 Study, accounting for $2.12/lb of the increase in cash costs during this period. Once operational, a potential investment in solar and battery storage or other power generation alternatives will be assessed to reduce power costs.

Once Dasa has achieved commercial production of U3O8, the company will conduct a third-party review of the plant processes to optimize operating rate and plant efficiency that would result in higher production volume and lower costs.

Based on growing global demand for uranium, Global Atomic is planning to complete a pre-liminary feasibility study in the early years of the mine plan for a plant expansion to 2,000 tonnes per day and incorporate additional drilling results.

The mine is already designed for higher production. Additional capital requirements are expected to be minimal and primarily used to expand the mining fleet and increase mill throughput. The current mine plan is based on throughput of 1,000 tonnes per day, the plant has been designed to handle up to 1,200 tonnes per day, with most equipment sized by 20 per cent more than this. At 92 per cent availability, throughput could be increased to 1,325 tonnes per day with minimal additional investment.

Technical Report

A NI 43-101 compliant technical report related to the 2024 Study will be filed on SEDAR and posted to the company website (www.globalatomiccorp.com) within 45-days of today's news release.

QP Statement

The scientific and technical disclosures in this news release have been reviewed and approved by Andrew Pooley and John Edwards. Andrew Pooley is the Chairman of Bara Consulting. He has obtained a B.Eng (Hons) in Mining Engineering from Nottingham University in the UK and has over 29 years of experience in the mining industry. He is a Fellow of the South African Institute of Mining and Metallurgy John Edwards is a Professional Metallurgist and is the Chief Metallurgist at METC Engineering (Pty) Ltd. having graduated with a BSc Hons in Mineral Processing Technology in 1985 from Camborne School of Mines, UK. He is a Fellow of the South African Institute of Mining and Metallurgy with over 35 years of experience as a metallurgist.

Off-take Agreements

Global Atomic has finalized a Letter of Intent ("LOI") for the sale of uranium from the company's Dasa Project in the Republic of Niger to a strategic Europe-based nuclear power utility. The LOI is subject to the successful conclusion of a purchase-sale contract, which the company will now progress.

The LOI represents the supply of 260,000 pounds U3O8 over a three-year delivery window beginning in 2026 and is characterized as representing "starter volume". This is the fourth such agreement signed by the company and brings the company's total current committed volume up to 9.5 million pounds U3O8, representing revenue of up to US$770 million at current market levels.

This LOI is priced close to current term market prices escalating each year, reflecting the company's continued strategy of layering in sales contracts in support of Tier 1 global utilities at volumes sufficient to underwrite debt financing, thereby limiting equity dilution as the Dasa operation moves into production.

Niger Update

On February 24, 2024, Niger's neighboring ECOWAS nations lifted the sanctions imposed on Niger subsequent to the July 2023 change in government, including re-opening Niger's historic primary trade route to ocean shipping channels through the port of Cotonou in Benin. During the sanction period, Global Atomic continued to open up underground ore access and development of mine infrastructure, as well as site preparation for the processing plant. Supplies for these activities used an alternate shipping route through Togo and Burkina Faso.

The Government of Niger places great value on the local, regional and national economic potential of the Dasa Mine through their 20 per cent ownership, corporate taxes and mining royalties, and more importantly the creation of hundreds of jobs and many business opportunities for local suppliers to help build and maintain the Dasa Mine.

The Government sees the Dasa Mine as playing a significant role in revitalizing the central Agadez region of Niger. Recent changes in the Niger Government's cabinet, have split the Mining portfolio away from the Petroleum and Energy portfolios, thus enabling improved access to the Mines Minister.

Project Financing Update

Financing for the construction of the processing plant continues to advance as the company anticipates that the 60 per cent debt portion of the project financing is expected to be satisfied in Q2 2024 in the form a debt facility from Export Development Canada and a US development bank.

The 40 per cent equity portion of the financing cost will be partially satisfied by the $73.4 million invested to date in the Dasa Project by Global Atomic and cash on hand. Any remaining equity required may be raised in the form of pre-payments on future uranium sales agreements, which would be put in place following banks' board approval of the debt facility. The current estimate for capital required by Dasa to commence production is as follows:

About Global Atomic

Global Atomic Corporation (https://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 has identified three additional deposits in Niger additional to 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. Mine excavation began in Q1 2022, and commissioning of the processing plant is expected at the end of 2025/ beginning 2026.

Global Atomic's Base Metals Division holds a 49 per cent interest in the Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a modern zinc production plant, located in Iskenderun, Turkiye. 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 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 of America.

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