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The Dasa Uranium Project New PEA
Phase 1 Mine Plan
GLOBAL ATOMIC CORPORATION
Corporate PresentationQ2 2020
This presentation has been prepared by the Global Atomic Corporation (“Global Atomic” or the “Company”) and includes information from sources believed by management to be reliable. No representation or warranty, expressed or implied, is made as to the accuracy of the information set forth herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice.
This presentation contains forward-looking statements, estimates and projections with respect to the anticipated future performance of the company that may be deemed to be “forward-looking statements.” These statements, estimates and projections reflect various assumptions made by the Company concerning anticipated results, which may or may not prove to be correct.
All statements contained in the presentation that address operating performance, future direction, management and control of the Company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control.
Figures as of 14 April 2020
Disclaimer
1Corporate Presentation Q2 2020
Uranium development underpinned by cash flow from zinc production
Company Overview
2
Uranium development,
Niger (100% GLO)
Dasa Uranium, NigerStand alone, high grade, high margin,
underground operation, in Phase 1 plan
2020Q3: apply for Mine Permit
Leveraged upside, protected
downside
C$63 M
Market Cap
Bringing Uranium to
market
Cash flow from recycling,
Turkey(49% GLO)
BST, Iskenderun, TurkeyNew kiln commissioned to produce zinc oxide
from EAFD (110,000tpa capacity)
2020Steady state
production
Corporate Presentation Q2 2020
Tight shareholder structure, dilution protected by cash flow
TSX: GLO | OTCQX: GLATF | FRA: G12
Capital Structure
3
Shares Issued (M) 145.6
Options 14.4
Warrants 0.4
Fully Diluted 160.4
Major Shareholders
C$63 MMarket Capitalisation
C$3.8 MCash 31 Dec 2019
43cShare Price
145.6 MShares issued
Stephen G. Roman (10%)
Frame Group (7%)
Sachem Cove (7%)
Befesa (4%)
Canaccord (4%)
Deutsche Rostoff (3%)
Others (66%)
52 week High
56c52 week Low
28c
Corporate Presentation Q1 2020
Experienced team of mine development and uranium veteransStephen G. Roman -- Chairman, President and CEOFormer director of Denison Mines. Founded, managed and sold Gold Eagle Mines to Goldcorp Inc for $1.5 B. Won “Prospector of the Year”, “Bill Dennis Award” from the PDAC in 2016. Founder of Harte Gold Corp.
Board and Management
4
George Flach, P.Geo -- Vice Chairman, VP ExplorationTrack record of discovery (approximately 35 Moz gold, 250 Mlbs uranium) over 35 years of exploration history
Paul Cronin -- Non-executive DirectorCEO of Adriatic Metals and Executive Director of Black Dragon Gold, former CEO of Anatolia Energy. 20 years banking experience, former Vice President of RMB Resources
Richard Faucher -- Non-executive DirectorMetallurgical Engineer, former President & GM of Falconbridge Dominicana, COO of Princeton Mining, VP Brunswick Mining and Smelting for Noranda Inc
Derek Rance -- Non-executive DirectorProfessional Engineer and principal of Behre Dolbear & Company Inc. Former: President and COO of Iron Ore Company of Canada, Mine Manager of Dickenson Mine, President and CEO of Cape Breton Development Corp.
Asier Zarraonandia Ayo -- Non-executive DirectorCEO of Befesa Zinc S.A.U. a world leader in electric arc furnace dust recycling since 2006. Former CFO Befesa Aluminium, previously senior manager, auditor and consultant, with Arthur Andersen
Merlin Marr-Johnson, BSc, MSc, DIC – Exec. Vice President25 years’ experience in the minerals sector. Former: exploration geologist for Rio Tinto, analyst for HSBC, portfolio manager for Blakeney Management, CEO of Palladex plc and Erris Resources plc. Director of Salazar Resources Ltd
Rein Lehari, CPA -- CFOAccountant, previously CFO of Silvermet prior to its merger with Global Atomic in 2017. Ex partner at PricewaterhouseCoopers
Fergus Kerr, BSc, P Eng, ARSM – Mining ConsultantRegistered Professional Engineer in the Province of Ontario with >40 years experience in the mining industry mostly senior management in Canadian underground mines
Peter Wollenberg, BSc, MSc, PhD -- Director of Exploration and Resource Development>38 years of experience in uranium exploration and mining. Former VP Exploration for Urangesellschaft, and senior mine geologist at the Cluff Lake uranium mine (COGEMA), and as exploration manager both in Australia and Niger
Tim Campbell -- Vice President and Corporate Secretary>25 years’ experience in the mining sector focusing on corporate finance, regulatory compliance, government relations and permitting, local community and aboriginal consulting.
Corporate Presentation Q2 2020
Ron Halas, P.Eng – Chief Operating Officer30 years of open pit and underground mining with Kinross, IAMGOLD, Vale, PT Freeport Indonesia, Placer Dome, and Cominco. Mine feasibility, development, and operational experience in Canada, Indonesia, New Caledonia, Suriname, Brazil, and Mauritania.
Corporate Presentation Q2 2020 5
Uranium projects, Niger (100% GLO)
New PEA for Dasa projectOptimized Phase 1 Mine Plan
Mine permit application H2 2020
Phase 1 plan is a low Capex development targeting profitable production over a twelve year mine life
Corporate Presentation Q2 2020
Optimized PEA Highlights (1)
6
US$211 MNPV8 (post tax) at US$35/lb
27%IRR (post tax) at US$35/lb
4 yearsPayback at US$35/lb
5,396 ppm U3O8Average LOM grade
US$16.72/lbC1 Cost
US$203 MInitial CapEx
44 Mlbs U3O8LOM uranium produced
4.4 Mlbs U3O8Average annual steady-state
uranium production
US$18.39/lbAISC Cost
12 yearsMine life
Strong base case economics improve significantly using long-term uranium prices
Corporate Presentation Q2 2020
Optimized PEA Highlights (2)
7
Economic sensitivity with varying uranium prices(1)
Uranium price (per pound) $25/lb $30/lb $35/lb $40/lb $45/lb $50/lb
Before-tax NPV8 $41 M $139 M $260 M $365 M $485 M $601 M
After-tax NPV8 $34 M $113 M $211 M $294 M $391 M $485 M
After-tax IRR 11.5% 18.5% 26.6% 32.6% 39.7% 46.3%
Economic sensitivity with varying discount rates using base-case uranium price $35/lb
Discount rate (%) 5% 8% 10% 12%
Before-tax NPV $341 M $260 M $215 M $177 M
After-tax NPV $279 M $211 M $173 M $141 M
1 Sensitivities used the base case mining model at US$35 per pound uranium
Phase 1 plan focused on 12 year mine life at Flank Zone
Dasa, longitudinal section
8
Schematic long-section and hypothetical underground infrastructure
Corporate Presentation Q2 2020
4.4 Mlb average annual steady state production, 1000tpd, sub-level retreat and fill
Phase 1 mine plan
9
Schematic mine development and underground infrastructure
August 2023 December 2025 September 2032
Corporate Presentation Q2 2020
Dasa in the heart of a world-class uranium district
Maps
10Corporate Presentation Q2 2020
A uranium country, a strategic country
11
Somaïropened 1971
Niger - Uranium Production since 1971Orano (ex-Areva)
Cominak closing March 2021
Cominakopened 1978
EU, French, US military support
Sahel stability
A stable Niger is key to regional stabilityElections in April 2021
Oil DiscoveriesAgadem Basin
Sirte Basin
Strategic IndustryFourth largest global uranium producer
2006New Mining
Code
Republic of Niger
Corporate Presentation Q2 2020
13 years, 6 licences, 4 discoveries, 1 MoU
Active in Niger since 2005
Global Atomic in Niger
12
2007
2008
2009
2010-19
2020
Tin Negouran, 8.8 Mlbs @ 170 ppm, (non-NI 43-101 compliant resource)
Dajy Prospect, 16.6 Mlbs @ 689 ppm, (non-NI 43-101 compliant resource)
Isakanan, 33 Mlbs @ 896 ppm, (non-NI 43-101 compliant resource)
Dasa, >250 Mlbs, 1028 drill holes, five NI 43-101 compliant mineral resource updates
PEA, Final Technical Report, and Application for Exploitation Permit
MoU with Orano signed 2017
Corporate Presentation Q2 2020
Large, high grade, strategic asset
Dasa uranium project, Niger
13
Grade / Tonnage Report at Varying Cut-Off Grades
Cut-Off(eU3O8, ppm)
Category Tonnes(Mt)
eU3O8(ppm)
Contained eU3O8(Mlb)
100Indicated 81.6 718 129.1
Inferred 96.1 606 128.4
320Indicated 32.0 1,530 108.0
Inferred 35.0 1,333 102.7
1,200Indicated 7.9 4,483 78.0
Inferred 8.4 3,783 69.9
2,500Indicated 3.6 7,849 61.9
Inferred 3.4 6,838 51.4
10,000Indicated 0.6 24,401 31.1
Inferred 0.8 14,598 25.3
Corporate Presentation Q2 2020
Corporate Presentation Q2 2020 14
Befesa Silvermet Turkey (BST)(49% GLO)
110,000 tpa EAFD capacityCash flow from zinc production
Home of a robust steel industry
Turkey
15
World’s 8th
largest steel producer
52 Mtpa
capacity
80% secondary
(scrap)
4 main steel production
clusters
23Electric Arc Furnaces
5 Induction Furnaces3
Blast Furnaces
Electric Arc Furnace Dust
(EAFD)
Waste Recycling
BST in Mediterranean
Cluster
Sustainable feedstock
Corporate Presentation Q2 2020
Map of Turkish steel production centres
Turkey
16Corporate Presentation Q2 2020
New efficient kiln doubles capacity
BST, Iskenderun, Turkey (49% Global Atomic)
17
• 51% and operator• market leader in EAFD recycling
2018 60,000 tpa• 33 Mlbs zinc produced• Attributable GLO EBITDA US$10.0 M
2019 Expansion completed and plant commissioned
• US$27 M rebuild funded out of cash flow
2020 110,000 tpa capacity
• Modern plant• Steady state operation• Expected 2 year payback given current
zinc market
Corporate Presentation Q2 2020
Significant near-term value catalysts
Timeline
18
Das
a, N
iger
(100
%)
BST,
Tur
key (
49%
)
H1 2020 H2 2020 2021
Apply for Mining PermitComplete technical
studies to advance Dasato a production decision
Steady state operations (coronavirus permitting)
Gradual retirement of project level debt
Finalise debt repayment, target full capacity
(110,000tpa)
Robust PEA released, drill water wells, prepare
application for Mining Permit
Corporate Presentation Q2 2020
Strategic uranium assets backed by positive cash flow
Investment Case
19
Niger pro-mining
• 50 years of continuous uranium production
• Rapid permitting
• High grade underground mine
• Mine Permit Application in 2020
Tier 1 DasaUranium
Tight equity structure
• Mkt cap C$63 M• 110,000 tpa capacity• Cash flow from zinc
productionBST
(49% GLO)
Corporate Presentation Q2 2020
Supply / Demand deficit continues to grow
Suspension: Covid-19 related suspensions in Canada, Kazakhstan, Namibia. Overall idled capacity insufficient to meet future demand
Depletion: 3 top--ten mines forecast to close before 2030 (Rossing, Cominak, Ranger)
Long lead-times for new production: 9 year bear market = underinvestment in exploration & development. Permitting is a key risk
Capacity shortfall: Significant production increase needed to meet future demand
Uranium Market
20
SUPPLY -30% since 2015
50 nuclear reactors under construction in 15 countries
• Currently 450 operating reactors in 30 countries
• Installed capacity 400 Gigawatts
• >10% of world's electricity
Short-term demand increase ~20 reactors scheduled for start-up within 1 year
Baseload demand unaffected by Covid-19
Producers buying in spot market to meet supply contract obligations
DEMAND +49% by 2040
Corporate Presentation Q2 2020
8 King St E, Suite 1700
Toronto, ON M5C 1B5
Tel: +1 416 368 3949
info@globalatomiccorp.com
Globalatomiccorp.com
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