The Dasa Uranium Project New PEA Phase 1 Mine Plan€¦ · This presentation contains...

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


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.


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


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


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


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


Dasa in the heart of a world-class uranium district

Maps


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


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


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 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


Map of Turkish steel production centres

Turkey


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


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


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)


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


8 King St E, Suite 1700

Toronto, ON M5C 1B5

Tel: +1 416 368 3949

[email protected]

Globalatomiccorp.com

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