Global Atomic Updates on Dasa Uranium Production Set for Early 2026

• Global Atomic Corporation is making significant progress on its Dasa Uranium Project in Niger, with commercial production scheduled for early 2026.
• The company is in advanced discussions for a US$295 million debt facility, covering 60% of planned project costs, with potential additional financing options under consideration.
• Site developments include camp expansion, earthworks for the acid plant, and the arrival of processing plant equipment, with mining activities advancing steadily.
• The current Mine Plan projects 68.1 million pounds of Yellowcake production over 23 years, with an updated plan expected in Q4 2024 to potentially increase production rates.
• The global uranium market is showing strong growth potential, with recent developments like Microsoft's deal with Constellation Energy and increased support for nuclear energy expansion.

Pioneering High-Grade Uranium Production in Africa

Global Atomic Corporation (TSX:GLO) is a unique player in the resource sector, combining high-grade uranium mine development with cash-flowing zinc concentrate production. The company's flagship Dasa Project in the Republic of Niger stands out as the highest-grade uranium deposit under development in Africa, second only to grades found in Canada's Athabasca Basin. With a target for commercial production in early 2026, Global Atomic is positioning itself to become a significant supplier in the growing uranium market.

The company's diverse portfolio includes a 49% interest in a zinc recycling operation in Turkey, providing a steady cash flow stream. This blend of advanced uranium development and established zinc production offers investors exposure to both the burgeoning nuclear energy sector and the steady base metals market.

For investors eyeing the uranium sector, Global Atomic presents a compelling opportunity. The company's progress on the Dasa Project, coupled with favorable market conditions and a unique business model, positions it as a potentially lucrative investment in the nuclear fuel supply chain. As the world increasingly turns to nuclear power for clean energy solutions, Global Atomic's timely development of a high-grade uranium source could translate into significant value for shareholders.

Project Financing: Securing the Path to Production

Global Atomic is making substantial headway in securing the necessary funding for the Dasa Project. The company is in advanced discussions with a U.S. development bank for a debt facility of US$295 million, which would cover 60% of the planned project costs. This potential financing arrangement demonstrates confidence in the project's viability and Global Atomic's execution capabilities.

Key financing developments include:

• Anticipated confirmation of the approval schedule in October 2024.
• Strong support from the bank and intention to approve the debt facility.
• Global Atomic has already invested approximately US$120 million, covering a significant portion of the remaining 40% project funding.
• Ongoing discussions with potential joint venture partners and exploration of other financing solutions.
• Extension of certain common share purchase warrants to December 31, 2024, subject to TSX approval.

The company's multi-faceted approach to financing provides flexibility and reduces risk, ensuring that the Dasa Project remains on track for its targeted production date. For investors, this comprehensive financing strategy demonstrates Global Atomic's commitment to minimizing dilution while maintaining project momentum.

Site Developments

Global Atomic is making significant strides in expanding its camp facilities to support the growing workforce at the Dasa Project. The current workforce of approximately 450 employees and contractors is being accommodated through ongoing camp expansions. A new 60-person housing facility is on the verge of completion, providing additional comfortable living quarters for the team. Furthermore, the company has completed earthworks for a larger camp phase designed to house 250 people, with civil works now in progress. These expansions are part of a broader plan to accommodate up to 900 workers during the peak construction phase expected in 2025, ensuring that the project has the necessary manpower to meet its ambitious goals.

In parallel with the camp expansion, significant progress is being made on the processing plant. The earthworks for the Acid Plant are nearing completion, marking a crucial milestone in the project's development. As this phase wraps up, the focus is shifting to prepare the site for the installation of the crusher and SAG mill, two critical components of the ore processing system. The company has begun receiving processing plant equipment on site, tangible evidence of the project's advancement. Additionally, key components of the acid plant, which have been manufactured in India, are now ready for shipment to the project site. This steady influx of equipment and progress on site preparation demonstrates Global Atomic's commitment to maintaining the project timeline and moving steadily towards production.

These developments showcase Global Atomic's ability to manage complex logistics and construction in a challenging environment. The phased approach to site development aligns with the project's timeline and budget, providing investors with tangible evidence of progress towards production.

Mining Activities: From Development to Production

The mining team at Dasa is making impressive progress, setting the stage for efficient ore extraction:

• Over 1,200 meters of mine development completed.
• 10,000 tonnes of development ore brought to surface.
• Ore segregated into low, medium, and high-grade stockpiles for plant commissioning.
• Ramp to the ore body fully paved.
• Ventilation system expansion underway, with the Main Fresh Air Raise over 90% complete.
• No lost time incidents in 779 days of mining operations.
• Workforce is approximately 98% Nigerien, including experienced miners and locally trained labor.

These achievements underscore Global Atomic's commitment to safe, efficient operations and local employment. The stockpiling of ore for plant commissioning is a strategic move that will facilitate a smooth transition to full production, potentially reducing ramp-up time and associated costs.

Mine Plan & Production Outlook

Global Atomic's current Mine Plan, unveiled in March 2024, presents a compelling production outlook for the Dasa Project. The plan projects a substantial output of 68.1 million pounds of Yellowcake over a 23-year period, with production slated to commence in 2026. This long-term production profile underscores the project's potential for sustained operations and revenue generation. Notably, the processing plant has been designed with additional capacity, capable of handling up to 1,200 tonnes per day, which exceeds the current plan of 1,000 tonnes per day. This built-in flexibility allows for potential production increases in the future.

Looking ahead, Global Atomic has scheduled the completion of an updated Mine Plan for Q4 2024, which is expected to feature higher production rates. This forthcoming update could further enhance the project's economic potential, potentially offering investors an even more attractive proposition as the company moves closer to production.

The potential for increased production rates in the upcoming Mine Plan update could significantly enhance the project's economics. For investors, this represents a possible upside to the already attractive production profile, potentially leading to improved cash flows and faster return on investment.

Market Dynamics & Industry Developments

The uranium market is exhibiting robust growth potential, with recent developments signaling a promising long-term outlook. A landmark deal between Microsoft and Constellation Energy has garnered significant attention, involving a 20-year agreement for Microsoft to purchase all power from Constellation's 880MW Three Mile Island reactor at US$100 per MWh. This arrangement, which includes a planned US$1.6 billion investment to restart TMI Unit 1 by 2028, underscores the increasing corporate demand for reliable, clean energy sources. Furthermore, the COP28 Nuclear Energy Goal has set an ambitious target to triple nuclear energy capacity by 2050, garnering support from major financial institutions. This initiative is expected to accelerate uranium demand and heighten the need for new greenfield projects like Global Atomic's Dasa.

These industry developments reflect a growing recognition of nuclear energy's crucial role in achieving clean energy targets. For Global Atomic, this trend points towards a potentially larger and more stable market for its future uranium production, enhancing the long-term value proposition for investors. The increasing global commitment to nuclear power as a clean energy solution aligns well with the company's production timeline and strategic positioning in the market.

While Global Atomic has made significant strides, it's crucial for investors to be cognizant of potential operational challenges. The company faces border-related issues, with recent high-level inter-government discussions focusing on re-opening the Niger/Benin border. In response, a government committee is being formed to expedite the resolution of issues related to mining, finance, transportation, and labor within Niger. The political and regulatory environment presents both opportunities and challenges, with the Niger Government's support for new projects serving as a positive factor. However, the ongoing need to navigate the complexities of operating in an emerging market remains a consideration.

Global Atomic has demonstrated a proactive approach to addressing these challenges. The company's engagement with government officials and efforts to diversify supply routes showcase its adaptability and risk management capabilities. This strategic approach to overcoming operational hurdles reinforces investor confidence in the company's ability to execute its plans effectively in a complex operating environment. As Global Atomic continues to advance the Dasa Project, its ability to navigate these challenges while capitalizing on the growing demand for uranium will be key factors in realizing the project's full potential and delivering value to shareholders.

Key Takeaways

Global Atomic Corporation presents a unique investment proposition in the uranium sector. The company's Dasa Project stands out for its high-grade resource, advanced stage of development, and strategic location. Key factors for investors to consider include:

• Project Quality: Dasa's status as the highest-grade uranium deposit under development in Africa positions it as a potentially low-cost producer in the global market.
• Advanced Stage: With site development progressing and production targeted for early 2026, Global Atomic offers near-term exposure to uranium production.
• Financial Prudence: The company's approach to project financing, combining debt facilities with potential joint ventures, aims to minimize dilution while ensuring project development.
• Market Timing: The growing global focus on nuclear energy as a clean power source aligns well with Dasa's production timeline.
• Diversified Revenue: Global Atomic's zinc recycling operations provide cash flow, supporting the company through the uranium project's development phase.
• Experienced Management: The team's ability to advance the project despite challenges demonstrates strong operational capabilities.
• Upside Potential: The upcoming Mine Plan update and ongoing exploration of additional uranium deposits in Niger offer growth opportunities beyond the current projections.

For investors seeking exposure to the uranium sector, Global Atomic offers a compelling blend of near-term production potential, high-grade resources, and strategic positioning in a growing market. While risks inherent to mining and operating in emerging markets remain, the company's progress to date and the positive industry outlook suggest that Global Atomic could be well-positioned to capitalize on the renewed interest in nuclear energy.

As the global push for clean energy intensifies and nuclear power gains recognition as a viable long-term solution, companies like Global Atomic, with advanced projects and strong fundamentals, may offer significant potential for long-term value creation. Investors should continue to monitor the company's progress on project financing, site development, and production milestones as key indicators of its path to becoming a significant player in the uranium market.