Mr. David Christie reports

GLOBEX ENTERS OPTION AGREEMENT ON ITS RAMP/MAUDE LAKE GOLD PROPERTY IN ONTARIO

Globex Mining Enterprises Inc. has entered an option agreement with 1001565486 Ontario Inc. ((Ontario Inc.) private) on Globex's Ramp/Maude Lake gold property, located southeast of the Timmins, Ont., area (see Globex news release dated May 31, 2016, for information on the Ramp/Maude Lake property). Ontario Inc. will pay $4.7-million in cash payments and $1.05-million in Ontario Inc. shares, and complete $6.0-million in exploration work expenditures on the Ramp/Maude Lake property over four years. At the end of the option agreement, Globex will retain a 3-per-cent gross metal royalty (GMR) with a buydown to 2-per-cent GMR for $1.5-million, applicable to the property and an area of influence of one kilometre (km) around the property boundaries.

In order for Ontario Inc. to earn 100 per cent of the Ramp/Maude Lake property the, following terms must be fulfilled:

• On May 11, 2026, Ontario Inc. must pay $500,000 cash and complete work expenditures on the property of $500,000 before the first anniversary.
• On May 11, 2027 (first anniversary), Ontario Inc. must pay $600,000 in cash and $250,000 in Ontario Inc. shares, and complete work expenditures on the property of $1-million by the second anniversary.
• On May 11, 2028 (second anniversary), Ontario Inc. must pay $600,000 in cash and $250,000 in Ontario Inc. shares, and complete additional work expenditures on the property of $1.5-million by the third anniversary.
• On May 11, 2029 (third anniversary), Ontario Inc. must pay $1.25-million in cash and $250,000 in Ontario Inc. shares, and complete additional work expenditures on the property of $3-million by the fourth anniversary.
• On May 11, 2030 (fourth anniversary), Ontario Inc. must pay $1.75-million in cash and $300,000 in Ontario Inc. shares.

Milestone payments (subject to inflation):

• If Ontario Inc. reports a compliant resource estimate of more than 300,000 ounces of gold (including measured, indicated and inferred resources), it shall make a one-time cash payment to Globex of $1-million within 30 days;
• Within 30 days of cumulative production of gold from the property exceeding 100,000 ounces, payment of $1.1-million to Globex by Ontario Inc.;
• Within 30 days of cumulative production of gold from the property exceeding 250,000 ounces, payment of $1-million to Globex by Ontario Inc.;
• Within 30 days of cumulative gold production of more than 500,000 ounces, an additional payment of $1.5-million to Globex.

Advanced royalty (dollar amounts subject to inflation):

• Ontario Inc. shall pay a first advance royalty payment within 30 days of the sixth anniversary date of the option agreement and each year thereafter. Each advance royalty payment shall be in an amount equal to the higher dollar value of 60 ounces of gold or $300,000, on the seventh anniversary the higher dollar value of 75 ounces of gold or $400,000, and each year thereafter increased by 15 ounces of gold or $100,000, whichever has the higher dollar value using the gold reference price as calculated on that day. All advance royalty payments are fully creditable against the royalty payments owed to Globex under the agreement.

The Ramp/Maude Lake property

The Ramp property consists of mining rights comprised of 66 unpatented mining claims (69,16-hectare (ha) units), 14 patented mining claims (34,16 ha units) and three mining leases (9,16 ha units) totalling 1,792 ha; seven parcels of patented and leased surface rights totalling approximately 208 ha are also included in the package. The property is owned 100 per cent by Globex Mining Enterprises.

The Ramp property is located in northeastern Beatty, northeastern Carr, southwestern Coulson and southeastern Wilkie townships, Larder Lake mining district, Ontario (NTS 42 A/9), and is approximately 12 km north-northeast of the town of Matheson. The principal gold deposit is located in northwestern Beatty township.

Highway 101 passes approximately eight km to the south and is connected to the property by the gravel all-weather Beatty township road No. 6. The Lady Maude Lake all-season gravel road extends from road No. 6 and an eastern branch of the road ends at the Ramp property No. 5 zone open-pit area.

The Maude Lake gold property has been the subject of a considerable amount of prior work, through the 1980s, 1990s and early 2000s, consisting of approximately $11-million of expenditures, which included over 49,000 metres (m) of drilling, stripping for an open-pit, portal and ramp development along with underground drilling.

The property has seen exploration starting with the discovery of gold in 1917 and 1919, when Hill Gold and Premier Gold Mining sank a shaft to a 62 m depth and did 114 m of lateral development on the shaft vein. Work continued over the years leading to the discovery of the No. 5 zone. Mapping, stripping and drilling, metallurgical work, and bulk sampling were undertaken. In 1987, Equinox Resources Ltd. started a ramp into the No. 5 zone and completed underground work to evaluate the zone, and calculated a non-National Instrument 43-101 mining resource of 175,000 tons grading 0.184 ounce per ton (oz/t) gold to the 140 m level.

Gold mineralization on the Maude Lake property is found in two structural settings. The most common of these host structures are northeast-southwest-trending quartz veins. They include the shaft vein and the ramp vein, as well as numerous other similar veins. These veins are best developed in the basalt lava unit and pinch out when approaching a komatiitic unit. The veins range from a few centimetres to five metres in width and can be traced for hundreds of metres. They dip steeply toward the north. The other host structure on the property is an east-west-trending swarm of quartz and silicified breccia zones that are developed within a highly sheared and altered volcanic sequence. Alteration consists of carbonate, silica, sericite and pyrite. The gold mineralization in the No. 5 zone is the best-known deposit of this type on the property. The No. 5 zone was stripped and a bulk sample taken from a 200 m by 150 m shallow open pit. A ramp was collared in the north side of the pit and driven northward to explore and sample the ramp vein.

In 1994, R.A. Bennett was engaged by Maude Lake Gold Mines Ltd. to complete a compilation of the property and complete what is now a non-NI 43-101 resource estimate. Mr. Bennett estimated a proven, probable and possible reserve (historical and non-NI 43-101 compliant) to the 220 m level of 510,116 tons grading 0.248 oz/t gold and a deep reserve of 283,358 tons grading 0.22 oz/t gold for a total geological ore reserve in all categories of 793,474 tons grading 0.235 oz/t gold (191,284 contained ounces of gold).

In 2016 to 2017, after compiling historical drilling and drilling four additional holes, open-pit modelling was completed by RJK Explorations Ltd. The open-pit model used a $1,200-per-ounce gold price and it resulted in an estimate of 270,000 tonnes at 3.5 grams per tonne (g/t) gold or 41,000 ounces of gold (historical and non-NI 43 101 resource). There has not been any work completed on the property since 2017. Results from the 2017 RJK drilling are provided in table 1.

This news release was written by David Christie, PGeo, president and chief operating officer of Globex, in his capacity as a qualified person (QP) under NI 43-101.

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