Global Atomic Secures Third Offtake Agreement for Dasa Uranium Project

About Global Atomic

Global Atomic is a unique mining company with interests in both uranium and zinc production. The company is advancing its flagship Dasa uranium project in Niger, which is fully permitted and on track to start production in 2025. Dasa will be a large, low-cost uranium mine with an initial 12-year lifespan producing over 4 million pounds of yellowcake per year.

In addition, Global Atomic owns 49% of the Befesa Silvermet Turkey zinc joint venture in Turkey. This operational plant recycles electric arc furnace dust to produce high-grade zinc concentrate, providing near-term cash flow. Global Atomic's partner Befesa is the European leader in this niche zinc recycling business.

The combination of Dasa uranium development and Turkish zinc operations provides Global Atomic with potential for long-term growth and leveraged exposure to rising uranium prices, complemented by stable cash flow in the zinc business. The zinc income stream helps minimize equity dilution as Global Atomic advances Dasa to production over the next few years.

Global Atomic is fully permitted to develop Dasa into one of the world's top-tier uranium mines. With initial underground work underway, the company offers investors exceptional leverage to the expected uranium supply/demand deficit driving prices higher over the coming decade. Global Atomic represents a unique uranium and zinc investment opportunity.

Global Atomic recently announced its third uranium offtake agreement to supply a major North American utility. This latest deal demonstrates the project's growing credibility and has positive implications for future financing. For investors, it signals improving market fundamentals and solidifies Global Atomic's position among upcoming uranium producers.

About the Third Offtake Agreement

Global Atomic has finalized a letter of intent (LOI) with a uranium utility to supply up to 3.5 million pounds of U3O8 annually. Deliveries will occur over a multi-year period beginning in 2026, when the Dasa mine is scheduled to start production.

This is the third supply agreement signed for Dasa's initial phase of production. Together with two prior deals, Global Atomic has now locked in buyers for around 30% of Dasa's first five years of output.

Based on today's uranium prices, this third LOI represents potential revenue of approximately US$250 million, and totalling over US$500 million when cnsidering the other two agreements in place. This will serve as collateral for securing project financing on attractive terms.

For Global Atomic, the latest award is further validation of Dasa among major nuclear utilities. It also reflects a strengthening uranium market, with the pricing formula tied to firming spot and term prices going forward.

The company expects to progress towards a binding purchase agreement over the coming months. Further offtake discussions are also underway.

Importance of the Offtake Agreements

These uranium supply agreements are crucial milestones in developing any new mine. For Global Atomic, there are several key benefits:

1. Validation of the project among major utilities: Successfully negotiating three deals proves that major utilities see Dasa as a strategic, long-term supply source. This boosts the project's legitimacy.
2. Collateral for financing: Offtake agreements provide collateral to secure debt financing at very attractive rates and terms. This minimizes equity dilution.
3. Revenue visibility: With buyers lined up, Global Atomic has clear revenue visibility assuming consistent production. This provides certainty for valuing the project.
4. Supports mine development: With offtake deals in place well before production, Global Atomic can move forward aggressively with mine development and uranium marketing.

For context, the company is targeting total offtake agreements of 50-60% to support project financing plans. The three deals signed so far represent significant progress while demand for long-term uranium supply continues rising.

Industry Trends Support Offtake Agreements

The uranium market is undergoing a structural change as demand grows while existing mines face depletion. With few new projects available, this is forcing utilities into more long-term contracting to ensure supply security.

The latest Global Atomic deal reflects some key industry trends:

• Global reactor demand keeps expanding steadily, requiring more uranium to fuel growth
• Mine supply has already peaked with closures far outpacing new projects
• Supply/demand deficits will persist for years absent major new production
• Spot uranium prices have rallied over 80% in the past two years on this tightening environment
• Utilities are seeking security with more long-term supply agreements

Global Atomic is positioned perfectly to benefit from these dynamics as a new, low-cost uranium supplier. Locking in additional agreements further strengthens its competitive position before production begins.

Dasa Uranium Project Overview

The Dasa uranium project is the flagship asset in Global Atomic's development pipeline. Highlights include:

• Located in the Republic of Niger, the #4 uranium producing country globally
• Large, high-grade resource amenable to low-cost open pit mining
• Phase 1 production estimate of 45.4 million pounds U3O8 for 12 years life of mine
• Total mine life expected to double or triple through ongoing exploration
• Among the lowest all-in sustaining costs globally at $22/lb based on feasibility study
• Completed permitting allowing construction activities to start
• Targeting first production in 2025 based on current schedule

Offtake agreements signed to date will utilize just a fraction of Dasa's total output over the initial mine life. Even larger offtake deals could be signed given the scale of this world-class deposit.

Investor Takeaways

For Global Atomic investors, the third offtake agreement highlights several key points:

• Major utilities now view Dasa as a core, long-term supply source even before production begins
• Agreements provide collateral for flexible, non-dilutive financing options
• Revenue visibility improves with buyers lined up for 30% of Phase 1 output
• Provides leverage to higher uranium prices over multi-year delivery periods
• Supports progression to binding contracts and further offtake discussions
• Reflects Dasa's advantages as a low-cost supplier amid tightening supply scenarios

With these positive developments, Global Atomic remains a top uranium developer pick as the market enters a new bull run. The company offers exceptional leverage given its low costs and expanding contract coverage. The Dasa mine is poised to become a major growth driver once uranium deliveries commence after 2025.

Conclusion

Global Atomic's third uranium offtake agreement signals growing market traction for Dasa yellowcake. This further de-risks the project while enabling attractive financing for development. With construction underway, long-term investors could see substantial gains as Global Atomic transitions into one of the uranium sector's next producers.