Global Atomic Reports Solid Q2 Results Amid Niger Situation

About Global Atomic

Global Atomic is a Toronto-based mining and metals company focused on developing its flagship Dasa uranium project in the Republic of Niger, while also operating a cash flowing zinc concentrate production joint venture in Türkiye. The company's goal is to become a large scale uranium producer through the construction and planned 2025 production start up of the Dasa mine, which contains high grade uranium resources. Global Atomic also owns a 49% stake in the Befesa Silvermet Türkiye zinc recycling joint venture, which provides cash flow to support corporate overhead costs and additional investment into the uranium business.

Q2 Highlights Show Strong Progress at Dasa Before Recent Unrest in Niger

Global Atomic made excellent progress advancing its Dasa uranium project during Q2 2023, with over 600 meters of underground ramp now complete to access the high grade uranium ore body. Additional mining equipment arrived at site, while surface infrastructure construction commenced to prepare for installation of the uranium processing plant. Detailed engineering for the processing plant neared completion, with long lead time equipment already ordered.

On the corporate side, Global Atomic signed a definitive supply agreement with a second major North American utility for delivery of up to 2.1 million pounds of uranium annually beginning in 2025. This contract provides further validation of Dasa's world class nature and supports project financing efforts. The company maintained a solid cash position of C$35 million to fund ongoing development work.

However, subsequent to quarter end, political unrest emerged in Niger with the military placing the President under house arrest on July 26 and assuming day-to-day control of the government. While the situation remains fluid, Global Atomic notes that its operations have not yet been impacted, with work continuing at both its Niamey offices and the Dasa site. Land borders have also begun reopening to enable the flow of goods and services to resume.

Global Atomic is monitoring events closely and staying in dialogue with stakeholders, focused on ensuring the safety of employees while progressing Dasa as much as possible under the circumstances.

Global Atomic Maintains Strong Long Term Growth Outlook Supported by Fundamentals

The outlook for nuclear power and uranium demand continues to strengthen, with the EU recognizing nuclear as green and critical to energy security, while major economies including the U.S. are enacting legislation and funding to grow domestic uranium production. Global shortfalls in uranium supply are expected toward the latter part of the decade, increasing the need for new low cost production like Dasa ahead of rising demand.

Dasa itself has expanded significantly, with the latest drill results and resource update pointing to larger, contiguous uranium zones that can be mined more efficiently. This is expected to translate into lower costs and higher reserves as the project feasibility study is updated. Economics remain compelling even at conservative $50/lb uranium prices, giving confidence in achieving robust returns over a long mine life.

With existing cash on hand and rising uranium prices providing cash flow leverage, Global Atomic appears fully funded to complete Dasa construction over the next 2 years. The company expects to arrange debt financing in the coming months to further optimize its capital structure in advance of initial yellowcake production.

Global Atomic's Base Metals Business Provides Diversification and Cash Flow

Global Atomic's 49% stake in the Befesa Silvermet Türkiye zinc recycling joint venture provides valuable diversification and cash flow to supplement the flagship uranium business. This high grade zinc concentrate production from steel dust helps offset corporate overhead costs and will assist in funding Dasa once expansionary spending ramps up over the next two years.

In Q2 2023, the zinc JV faced operational challenges including temporary shutdowns, lower zinc pricing, and severe cost inflation pressures. However, with full production restored, zinc prices recovering, and cost pressures easing, the joint venture is expected to return to profitability by Q4 2023.

Global Atomic's stake in this profitable zinc recycling operation gives it a unique advantage among uranium peers, providing embedded value and cash flowing assets to complement the world class Dasa growth project.

Key Takeaways for Investors on Global Atomic's Growth Trajectory

• Construction at the flagship Dasa uranium project continues advancing well with first production expected in 2025.
• Recent political instability in Niger has not materially impacted operations so far, with Global Atomic monitoring the situation closely and adapting its plans as prudent.
• Economics at Dasa remain robust even at conservative uranium prices of $50/lb, supported by larger high grade resources and lower operating costs.
• With existing cash on hand and projected cash flow, Global Atomic appears to have adequate funding to complete Dasa construction over the next 2 years.
• Additional project financing is planned in 2023 to further optimize the balance sheet ahead of inaugural yellowcake production.
• Global Atomic's zinc joint venture provides valuable diversification, cash flow and upside potential as zinc markets rebalance.
• Demand fundamentals for nuclear power continue strengthening worldwide, with uranium supply shortfalls expected in the coming years if new projects are not developed.
• As a low cost uranium project entering production just as major supply deficits emerge, Dasa remains a strategic growth asset that can deliver strong long term investor returns.

Global Atomic offers a unique combination of near-term uranium production growth and cash flowing zinc concentrate diversification. While navigating external challenges and risks inherent in mining project development, the company appears well positioned to capitalize on the positive uranium market trends emerging. Global Atomic has the potential to generate substantial investor returns if it executes successfully on bringing the world-class Dasa project into production by 2025 to meet rising uranium demand.