Global Atomic Provides Financing Update for Dasa Uranium Project

• Global Atomic Corporation is advancing its Dasa Uranium Project in Niger, with project financing discussions progressing through multiple channels including a potential U.S. Development Bank debt facility and minority joint venture opportunities.
• The company has completed the ramp to the orebody at Dasa and is advancing underground development, while plant construction continues with earthworks nearing completion and civil works underway.
• Global Atomic's 2024 Feasibility Study projects production of 68.1 million pounds of U₃O₈ over a 23-year mine life, with commercial production scheduled for 2026.
• The Dasa Project is positioned to be a lowest quartile producer with an after-tax NPV8% of $917 million and IRR of 57% at a base uranium price of $75/lb.
• The company is exploring multiple financing options to minimize equity dilution, with CEO Stephen Roman indicating discussions with a uranium industry group and Nigerien suppliers who have expressed interest in the project.

Global Atomic Corporation (TSX:GLO) is a publicly listed company providing a unique combination of high-grade uranium mine development with its Dasa Project in Niger and cash-flowing zinc concentrate production through a joint venture in Turkey. The company is progressing on multiple fronts to secure financing for its flagship Dasa Uranium Project, which is described as the only greenfield uranium project under development today and the highest-grade uranium deposit in Africa.

In a news release, President & CEO of Global Atomic Stephen G. Roman, shared the company's sentiments on the operational and corporate developments:

"I recently returned from my latest trip to Niger, where I witnessed the impressive work of the mining team and the plant construction at the Dasa Project. We are in discussions with a well-known uranium industry group regarding a limited, non-equity investment. I also had productive meetings with a number of Dasa's key Nigerien suppliers of materials and services, including some who have confirmed their interest in investing in the Dasa Project."

Financing Progress

Global Atomic is exploring multiple financing avenues to complete the Dasa Project without significant shareholder dilution. The U.S. Development Bank has confirmed that their internal process to advance approval of a debt facility for the Dasa Project is proceeding and expected to occur in the current quarter. Once approved by the Credit Committee, the project loan would then move to the Investment Committee and Board of Directors for final approval.

The company is also engaged in discussions regarding a potential minority project-level joint venture, which could provide an alternative to finance 100% of remaining project development costs. This investment would be based on the intrinsic value of the Dasa Project as per the company's most current Feasibility Study, plus investments made by the company to advance the project since that date.

Additionally, the company is in discussions with a uranium industry group regarding a limited, non-equity investment and with key Nigerien suppliers who have expressed interest in investing in the project. These potential transactions could eliminate the need for a near-term equity financing.

"These potential transactions could eliminate the need for a near term equity financing, allowing the Bank and potential JV partner sufficient time to complete their approval processes and commit funds for the completion of the Dasa Project," Roman stated.

Feasibility Study Highlights

The Dasa Project's 2024 Feasibility Study demonstrates strong economics:

• Production: 68.1 million pounds of U3O8 over a 23-year mine life
• Reserve Grade: 4,113 ppm overall; 5,109 ppm in the first 12 years
• Commissioning: Scheduled for H1 2026 with commercial production
• Economics: At a base uranium price of $75/lb, the project has an after-tax NPV8% of $917 million and IRR of 57%
• Initial Capital: $308.3 million (net of $67.2 million already spent to December 2023)

The project economics show considerable sensitivity to uranium pricing, with the after-tax NPV8% ranging from $551 million at $60/lb to $1.62 billion at $105/lb uranium.

Project Development Status

Global Atomic has made significant progress in developing the Dasa Project:

• Mining Progress: The ramp decline that began at the end of 2022 has reached the orebody in late 2023, with level development now underway. Development ore is being stockpiled on the surface.
• Plant Construction: Earthworks are nearing completion, civil works are underway, and a concrete batch plant is under construction. Major plant components including the SAG Mill and Acid Plant are now arriving at the site.
• Workforce: There are currently 510 employees and contractors working at the Dasa Project, with a strong local presence.
• Infrastructure: A new 60-person camp has been constructed to house workers, and substantial site infrastructure is in place.

The company reports that development tonnes are accumulating on the surface, including 960 tonnes of medium-grade ore (3,000 to 5,000 ppm), 11,370 tonnes of low-grade ore (1,300 to 3,000 ppm), and 18,050 tonnes of mineralized waste (240 to 1,300 ppm).

Value Enhancement Opportunities

Global Atomic has identified several opportunities to enhance the project's value:

• Resource Conversion: Infill drilling of 51.4 million pounds of high-grade (5,349 ppm) Inferred Resources is expected to increase reserve grade and add mineable pounds.
• Production Expansion: A pre-feasibility study is planned early in the mine plan to evaluate increasing mill throughput from 1,000 to 2,000 tonnes per day.
• Grade Control: Ongoing definition drilling from underground and surface locations should optimize mining sequences.

These initiatives could increase production and extend the mine life beyond the current plan.

ESG Initiatives & Community Relations

Global Atomic emphasizes its commitment to environmental, social, and governance (ESG) principles. Since 2008, the company has implemented various initiatives including providing food during droughts, medical supplies, water wells, and education and training programs. The Dasa Project is being developed according to Equator Principles and IFC Performance Standards, with ESG practices independently validated by a development bank.

The project is expected to provide significant benefits to the local economy through royalties and taxes, employment of local workers, procurement from local businesses, and training programs. Operational ESG plans include minimizing carbon emissions, studying solar power and battery storage for future development, and utilizing battery-electric and remote mining vehicles.

Market & Industry Context

The Dasa Project is being developed against a backdrop of increasing uranium demand. According to World Nuclear Association/Fuel Link data from 2024 cited in the company presentation, uranium demand is projected to exceed supply in the coming years, creating a favorable environment for new producers.

Global Atomic's Turkish zinc recycling joint venture provides additional cash flow diversity and is expected to be profitable in 2024. The operation processes Electric Arc Furnace Dust (EAFD) containing 20-30% zinc from local steel mills and produces a 65-70% zinc oxide concentrate. Revenues increased to $44 million in 2024 from $30 million in 2023 due to improved zinc sales from increased shipments and higher zinc prices.

For Investors

Global Atomic presents a unique investment opportunity in the uranium sector, advancing what it describes as the only greenfield uranium project currently under development globally. With uranium demand projected to exceed supply, and nuclear power gaining recognition as a key component of clean energy strategies, the timing of the Dasa Project's development appears favorable. The company's financing approach aims to minimize dilution through a combination of development bank funding, potential joint ventures, and strategic investments, which would be positive for existing shareholders if successfully executed.

Outlook and Catalysts

For 2025, Global Atomic expects several significant catalysts:

• Project financing and/or joint venture approval
• Advancing underground mining
• Completing plant construction
• Securing additional off-take agreements

In 2026, the company anticipates declaring commercial production, initiating yellowcake deliveries to utilities, continuing infill and expansion drilling, and securing additional off-take agreements.

The project's economics appear robust across various uranium price scenarios, with strong projected returns even at conservative uranium prices. Additionally, the company's cash-flowing zinc recycling business provides operational diversity and some level of ongoing income. However, investors should note that the company's share price has declined significantly from its 2021-2022 peaks, and completion of project financing remains a key hurdle to overcome. For investors interested in the uranium sector, Global Atomic offers exposure to a development-stage project with near-term production potential in an environment of increasing uranium demand.