Mr. Stephen Roman reports

GLOBAL ATOMIC ANNOUNCES 2023 RESULTS AND PUBLISHES DASA URANIUM PROJECT FEASIBILITY STUDY

Global Atomic Corp. has released its operating and financial results for the year ended Dec. 31, 2023.

Highlights

Dasa uranium project -- mineral resource estimate:

• On May 23, 2023, the company announced the completion of an updated mineral resource estimate for the Dasa project. The MRE includes the results of a 16,000-metre drill program that was designed to convert inferred resources to indicated resources, and resulted in a 50-per-cent increase in indicated resources at a 1,500-part-per-million cut-off grade.

Dasa uranium project -- offtake agreements:

• In 2023, the company formalized three offtake agreements with major North American utilities for the delivery of 1.4-million pounds triuranium octoxide per year for the first five years of mining. These offtake agreements represent a small percentage of the current 68.1-million pounds of production in the new 23.75-year mine plan and provide the company with the ability to repay the debt financing facility, while maintaining leverage to a tightening uranium market.

Dasa uranium project -- mining:

• Ramp development has been under way since the beginning of 2023, with over 950 metres completed. Mine development is continuing downdip in the footwall of the orebody.
• In August, 2023, the closure of the Benin border interrupted the usual supply route from the Port of Cotonou through Benin to Niger. The company suspended mine development due to interruptions of its supply chain and depletion of certain consumables until the company established an alternative shipping route through Togo and Burkina Faso. Using this alternative route, underground mine development resumed in December, 2023.
• As of the date hereof, the Dasa mine, operated by Somida and overseen by Global Atomic, achieved 595 days without a lost-time injury. This achievement is a testament to management's dedication to create a safe work environment and the team's success in implementing effective safety measures.

Dasa uranium project -- financing:

• The company is engaged with a Canadian export credit agency and a U.S. development bank to establish a debt facility to finance 60 per cent of Dasa's development costs. The company has been advised by this banking syndicate that credit committee approval may occur in April, 2024, followed by final approval by the board of directors in June, 2024.
• Management continues to work toward the completion of this debt facility; however, the company is also involved in discussions with other financing entities and will continue to evaluate alternative financing options that support a financing decision in the best interests of shareholders.

Dasa uranium project -- team:

• In 2023, 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. Both individuals have substantial West African mining experience, and it welcomes them to the Somida operating team.

Niger political situation:

• On Feb. 14, 2023, the company announced that a local court in Agadez, Niger, had issued orders against the government of Niger and the company's subsidiary in Niger, Somida, in response to historical concerns raised by certain local organizations. On Feb. 24, 2023, the ruling was overturned and annulled as having no merit. Somida continued mine development operations throughout the court proceedings.
• On July 26, 2023, the Niger military initiated a change in government. The new government of Niger subsequently confirmed its support of the Dasa project and encouraged Somida to proceed on schedule. The Economic Community of African States imposed wide-ranging sanctions on Niger, which were subsequently removed in early 2024. The Niger-Benin border is the only border that remains closed; however, it is expected to open soon.
• On Oct. 10, 2023, the United States formally recognized the events of July 26, 2023, as a coup d'etat, which temporarily halted U.S. Development Bank's work on its debt financing facility for the Dasa development.
• In November, 2023, the U.S. Senate voted overwhelmingly to support continued U.S. military presence in Niger. The U.S. undersecretary for African affairs stated that the United States stands ready to support Niger in a successful transition to democratic rule, and U.S. Development Bank resumed its work on the debt facility for Dasa.

Turkish zinc joint venture:

• Operations were impacted by major earthquakes which occurred in Turkey during first quarter 2023. Local steel mills, which supply the Turkish zinc joint venture with electric arc furnace dust, ceased operations for a period of time before resuming operations.
• The Turkish joint venture processed over 66,000 tonnes EAFD to produce 27.2-million pounds of zinc in concentrate at an average realized price of $1.20 (U.S.) per pound.
• The company's share of the Turkish JV earnings before interest, taxes, depreciation and amortization a loss of $2.4-million in 2023 (a gain of $4.2-million in 2022).
• The revolving credit facility of the Turkish JV was $12-million (U.S.) at the end of 2023 (Global Atomic share: $5.9-million (U.S.)).
• The cash balance of the Turkish JV was $1.9-million (U.S.) at the end of 2023.

Corporate:

• On March 17, 2023, the company completed a bought deal prospectus offering of 18,666,667 units at a price of $3 per unit for gross proceeds of approximately $56-million. Each unit comprised one common share and one-half warrant exercisable at $4 per common share for a period of 18 months from closing.
• On Nov. 21, 2023, the company filed a short form prospectus for up to $350-million, which amount includes up to $50-million that may be raised under an at-the-market equity program as per the supplemental prospectus filed Dec. 6, 2023, over the ensuing 25-month period.
• On Dec. 22, 2023, the company completed a private placement of nine million units at a price of $2.50 per unit for gross proceeds of $15-million. Units comprised one common share and one-half common share purchase warrant. Each full warrant could be exercisable at $3 per share for a period of 12 months from closing subject to accelerated expiry should the price of the common shares exceed a volume-weighted average price of $3.50 for five consecutive trading days. The acceleration clause was activated in January, 2024, and all warrants exercised for gross proceeds of $9-million.
• Global Atomic continues to receive quarterly management fees and monthly sales commissions from the Turkish JV ($690,000 in 2023 compared with $1,149,000 in 2022), helping to offset corporate overhead costs.
• Cash balance as of Dec. 31, 2023, was $24.9-million.

Subsequent events:

• In January, 2024, the Niger government suspended the approval of new and/or renewed mineral exploration permits, including renewals recently received by the company. This suspension was initiated to conduct an audit of recently issued exploration permits and related to undisclosed gold shipments. This announcement had no impact on the mining permits or operations at the Dasa project, and the company expects its exploration permits to be renewed shortly.
• On March 5, 2024, the company released the results of its Dasa uranium project 2024 feasibility study as an update to its 2021 phase 1 feasibility study, which confirmed an extension of the mine plan from 12 years to 23.75 years (2026 to 2049), a 50-per-cent increase in mineral reserves to 73 million pounds U3O8 and an increase in total production by 55 per cent to 68.1 million pounds U3O8. Using an average uranium price of $75 per pound U3O8, the FS shows a net present value discounted at 8 per cent of $917-million (U.S.), an internal rate of return of 57 per cent and a payback period of 2.2 years.
• On March 5, 2024, the company announced that it had signed a letter of intent from a European nuclear power utility to purchase U3O8 from Dasa, representing its fourth offtake agreement for deliveries starting in 2026.
• On March 16, 2024, Niger announced its intention to terminate its military co-operation agreement with the United States. Global Atomic understands the two countries are in discussions to reach a mutually acceptable resolution.
• On March 27, 2024, the company published the full Dasa uranium project feasibility study. The FS is available at the Global Atomic website and at SEDAR+.

Global Atomic president and chief executive officer Stephen G. Roman commented: "I congratulate the entire team at Global Atomic, including those at our Niger subsidiaries and those JV employees in Turkey, for their perseverance and dedication amidst many external challenges in 2023, both geopolitical and geophysical. I also thank our investors who maintained their support and confidence through these challenging times. The strategic nature of the Dasa deposit, the quality of our team and the world need for clean, reliable, nuclear power are the fundamental drivers for our business.

"We proved the impressive scope of Dasa early in 2023, when we published a revised mineral resource estimate, which converted inferred resources into 50 per cent more indicated resources. We also delineated another 51.4 million pounds in the inferred category that could eventually be brought into our next technical update. In early 2024, we announced a new feasibility study that extended the Dasa mine plan from 12 to 23 years, increased mineral reserves by 50 per cent to 73 million pounds and uranium production by 55 per cent to 68.1 million pounds. Using a conservative uranium base price of $75 per pound and very conservative cost assumptions that include several layers of contingencies, the study forecasts a very attractive after-tax NPV and an impressive after-tax IRR.

"The current roster of 275 employees at the Dasa project are continuing with underground and surface development to prepare for the processing plant erection planned to start later this year. The construction crews will begin arriving as the expanded camp is completed midyear.

"I look forward to bringing further updates to shareholders as we continue to advance the Dasa project to first Yellowcake production in [first quarter] 2026."

Outlook

Dasa uranium project:

• Continue development of the underground ramp and site infrastructure to remain on schedule to supply uranium ore to the processing plant from the end of 2025;
• Addition of an in-country construction team, bringing the site complement from 275 to approximately 500;
• In second quarter 2024, its bank syndicate is expected to approve the debt financing facility for the development of the Dasa project;
• 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 offtake agreements.

Turkish zinc joint venture:

• The company anticipates operations at its Turkish JV will be profitable in 2024 as local steel mills normalize production.

Comparative results

An attached summarizes comparative results of operations of the company.

Mineral resources

Since 2011, GAFC's exploration activities have been primarily focused on the Dasa deposit. In 2018, GAFC began a drill program at an area identified as the Flank zone to assess the potential for near-surface high-grade mineralization, as well as testing strike extensions of the deeper mineralization at depth. The company was successful with both programs. The drilling identified significant amounts of high-grade mineralization in the Flank zone and in several new zones along strike and downdip. This information guided the location of the 16,000-metre infill drilling program in 2021 and 2022, when the company drilled a further 28 diamond drill holes for a total of 16,368 metres, targeting areas of inferred resources, so they could be upgraded to the indicated category. Using these new data, AMC Consultants was engaged to prepare an updated mineral resource estimate, which it reported on with an effective date of May 12, 2023.

Highlights from the 2023 MRE included a grade-tonnage report at varying cut-off grades and are summarized herein.

The 2023 MRE concluded on the mineral resource statement herein.

Reserves

Following the updated MRE, the company has updated the previous phase 1 feasibility study. The updated feasibility study was reported with an effective date of Feb. 28, 2024, and the full feasibility study was filed on SEDAR+ on March 27, 2024.

The 2024 feasibility study estimated the following mineral reserves.

Reserve expansion

Enhancement of throughput and possible mill expansions will be investigated to improve and maintain the processing plant output. Achieving increased throughput will significantly lower the unit operating costs over time. Additional infill drilling is expected to upgrade inferred resources to the indicated resource category so these can be included in subsequent mine plans.

2024 feasibility study results

2024 feasibility study on the Dasa deposit was completed using a uranium price of $75 (U.S.) per pound U3O8. Key economic and production statistics are set out herein.

The economic analysis for the study was done through a discounted cash flow model based on the mining inventory from the 2024 feasibility study mine plan at a price of $75 (U.S.) per pound of U3O8. Sensitivity analysis was carried out at price intervals from $60 (U.S.) per pound to $105 (U.S.) per pound, as shown herein. The DCF includes an assessment of the current tax regime and royalty requirements in Niger. Net present value figures are calculated using a range of discount rates. The discount rate used for the base-case analysis is 8 per cent. NPV has been calculated by discounting net cash flows to the start of operations, Jan. 1, 2026, and deducting undiscounted remaining initial capital costs therefrom.

The 2024 feasibility study is based on a plant throughput of 1,000 tonnes per day or 365,000 tonnes per year. The plant equipment has been designed for 1,200 t/d throughput, but the 2024 feasibility study assumes plant availability of 86 per cent (1,200 t/d times 86 per cent equals 1,032 t/d). The Arlit processing plants achieve 92-per-cent availability by comparison. If Somida has a similar experience, throughput would increase to about 1,104 t/d (1,200 t/d times 92 per cent equals 1,104 t/d). The plant layout has been optimized to enable the addition of more processing lines in the future. Much of the equipment has been oversized by 20 per cent, so minimal capital costs would be required to achieve throughput of 1,325 t/d (1,200 t/d times 1.2 times 0.92 equals 1,325 t/d). Fixed mining, processing and site costs are significant, so increases in throughput would have a significant impact on reducing unit costs.

As shown herein, the mining grades are higher in the initial years than later; however, further drilling to include high-grade inferred resources is expected to smooth the grade profile. The current mine plan grade profile is shown herein.

Accordingly, ore processed will also vary in grade and impact cash cost in various periods.

Capital costs for the production period were estimated in the feasibility study.

Offtake agreements

In 2023, the company executed three uranium offtake agreements for sales to North American utilities. These agreements total between 6.9 million and 8.4 million pounds U3O8 over six years beginning in 2026. The higher amount assumes the exercise of options available to the buyers. On March 5, 2024, the company announced that it had received a letter of intent for the sale of uranium to a strategic European nuclear power utility for up to 780,000 pounds U3O8 over three years beginning in 2026. These offtake agreements provide the company with the ability to repay project construction loans while maintaining leverage to a firming U3O8 price.

Niger political situation

On July 26, 2023, the military in Niger placed the President under house arrest and assumed day-to-day operation of the government. This move was widely condemned by the international community. The Economic Community of West African States imposed sanctions on Niger, resulting in the closure of Niger's borders and airspace. Many ECOWAS countries did not support the border closures imposed by ECOWAS, and all borders remained open to economic and human traffic, except Nigeria and Benin. The Benin route from the Port of Cotonou has historically been the main supply route for Niger, so its border closure has disrupted the company's supply chain, which resulted in the company discontinuing mine development activities in August. An alternative supply route through the Port of Lome Togo and through Burkina Faso developed, and with the replenishment of mining supplies, Somida was able to resume mine development activities in December.

On Feb. 24, 2024, ECOWAS removed all sanctions. Although ECOWAS no longer restricts border crossings, the Niger-Benin border remains closed from the Niger side but is expected to open soon.

Project development schedule

Mine development activities at the Dasa project have been under way 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 two- to three-month 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 and will get under way in April. Civil works will follow, and processing plant equipment will begin arriving at site in fourth quarter 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. The project financing is being negotiated with a Canadian export credit agency and a U.S. development bank. On Oct. 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 banks are continuing their review and finalization of credit committee documentation, with target credit committee approval in April, 2024, final board approval in June and documentation thereafter. It is expected that the project financing will provide 60 per cent of the total project costs plus 50 per cent 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 choose not to proceed.

Turkish zinc JV EAFD operations

The company's Turkish EAFD business operates through a joint venture with Befesa Zinc SAU, an industry-leading Spanish company that operates a number of Waelz kilns throughout Europe, North America and Asia. On Oct. 27, 2010, Global Atomic and Befesa established a joint venture, known as Befesa Silvermet Turkey SL, to operate an existing plant and develop the EAFD recycling business in Turkey. BST is held 51 per cent by Befesa and 49 per cent by Global Atomic. A shareholder agreement governs the relationship between the parties. Under the terms of the shareholder agreement, management fees and sales commissions are distributed pro rata to Befesa and Global Atomic. Net income earned each year in Turkey, less funds needed to finance operations, must be distributed to the partners annually, following the BST annual meeting, which is usually held in the second quarter of the following year.

BST owns and operates an EAFD processing plant in Iskenderun, Turkey. The plant processes EAFD containing 25 per cent to 30 per cent zinc that is obtained from electric arc steel mills, and produces a zinc concentrate grading 65 per cent to 68 per cent zinc that is then sold to zinc smelters.

Global Atomic holds a 49-per-cent interest in the Turkish JV, and, as such, the 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).

An attached table summarizes comparative operational metrics of the Iskenderun facility.

Global steel production held steady in both 2022 and 2023, maintaining a total output of 1,888 million tons. However, regional performances varied, Chinese production remained unchanged, India saw a notable increase of 11.8 per cent, the European Union experienced a decline of 7.4 per cent, and North America and Turkey saw decreases of 1.3 per cent and 4 per cent, respectively.

In October, 2023, the World Steel Association released its short-term forecast for demand, anticipating a 1.8-per-cent increase in global demand for the year and a subsequent growth of 1.9 per cent in 2024. The decline in construction activities resulting from the devaluation of the Turkish lira and soaring inflation rates contributed to a reduction in steel demand in 2022. However, Turkish steel demand is expected to record very high growth, where the construction sector is expected to grow by 15 per cent due to the rebuilding and reinforcing efforts in high earthquake risk areas.

The impact of the Ukrainian conflict on global steel markets is uncertain; however as exports from Russia and Ukraine have historically accounted for 10 per cent of global steel exports, it is likely a material percentage of this supply will be replaced by increased production in other countries.

An attached table summarizes comparative results for 2023 and 2022 of the Turkish zinc JV at 100 per cent.

All the financial statement line items included in the Turkish zinc JV consolidated statements of loss include the impact of hyperinflation accounting for the years ended Dec. 31, 2023, and 2022. Non-monetary assets and liabilities which are not carried at amounts current at the balance sheet date and components of shareholders equity are restated by applying the relevant conversion factors. All items in the statement of income are restated by applying the relevant (monthly) conversion factors.

The Turkish zinc JV experienced lower revenues in 2023 compared with 2022 due to processing less EAFD and lower zinc prices. Fortunately, the plant was under a scheduled maintenance shutdown in January, 2023. Due to the earthquake on Feb. 6, 2023, the plant eventually resumed operation following a thorough inspection in March, 2023. Revenues were also negatively impacted by the zinc price. The average monthly LME zinc price declined to $1.20 (U.S.) per pound in 2023 from $1.58 (U.S.) per pound in 2022.

The Turkish zinc JV incurred increased expenses in 2023. The Ukrainian conflict, post-COVID demand increases, raw material shortages and global logistics challenges resulted in substantial inflationary pressures on all costs. Moreover, the Turkish zinc JV also incurred extraordinary expenses related to the massive earthquakes, such as fixed costs incurred due to the unplanned stoppage. The Turkish zinc JV also realized negative impact of EAFD purchase contracts that were entered into when zinc prices were much higher. Combined with the negative impact of hyperinflation accounting on operating costs, the overall result was a negative EBITDA during 2023.

The cash balance of the Turkish zinc JV was $1.2-million (U.S.) at Dec. 31, 2023.

The local Turkish revolving credit facility balance was $12.0-million (U.S.) at Dec. 31, 2023 (Dec. 31, 2022: $8.3-million (U.S.), and bears interest at 11 per cent. The Turkish revolving credit facility can be rolled forward.

The loans are denominated in U.S. dollars but converted to Turkish lira for functional currency accounting purposes. For presentation purposes, the equity interests are then converted to Canadian dollars. The foreign exchange loss for the 12 months ended Dec. 31, 2023, related to the Turkish JV debt and cash balances, was $6.3-million (loss of $3.8-million in 2022).

The foreign exchange loss is an unrealized loss and largely relates to the devaluation of the Turkish lira relative to the U.S. dollar from 18.7 on Dec. 31, 2022, to 29.5 at Dec. 31, 2023. In economic terms, all revenues are received in U.S. dollars, and these will be used to pay down the U.S. denominated debt, so no exchange gains/losses will be realized in U.S.-dollar terms.

The increase in tax recovery in 2023 is mostly related to the timing differences of application of financial reporting in hyperinflationary economies between the international financial reporting standard financial statements and the statutory tax financial statements. The Turkish zinc JV's IFRS financial statements applied international accounting standard 29 in 2022, whereas financial reporting in hyperinflationary economies was applied in 2023 to the statutory financial statements.

Over all, the company's share of EBITDA was a loss of $2.4-million in 2023 ($4.1-million at 100 per cent). After deduction of management fees, sales commissions, and interest expense, depreciation, foreign exchange losses, other income and taxes, the company's share of net loss was $4.1-million for 2023 ($8.4-million at 100 per cent).

Qualified person statement

The scientific and technical disclosures in this news release have been extracted from the 2024 feasibility study, which was reviewed and approved by Dmitry Pertel, MSc, MAIG, John Edwards, BSc honours, FSAIMM, Andrew Pooley, BEng (honours), FSAIMM, who are qualified persons under National Instrument 43-101 (Standards of Disclosure for Mineral Properties).

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 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 Nov. 5, 2022, and commissioning of the processing plant is scheduled for first quarter 2026. Global Atomic has also identified three additional uranium deposits in Niger that will be advanced with further assessment work.

Global Atomic's base metals division holds a 49-per-cent interest in the Befesa Silvermet Turkey joint venture, which operates a modern zinc recycling 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 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.

We seek Safe Harbor.