Global Atomic's Q1 2024 Report: Updates on Dasa Uranium Project & Turkish Zinc JV

• Global Atomic reported Q1 2024 operating and financial results, showing progress on its Dasa Uranium Project in Niger and its Turkish Zinc Joint Venture.
• The updated 2024 Feasibility Study for Dasa estimates a 23.75 year mine life producing 68.1M lbs of U₃O₈, with robust economics at current uranium prices.
• Global Atomic has secured uranium offtake agreements totaling 9.5M lbs U₃O₈ over Dasa's first 5 years, representing ~$770M in revenue at $90/lb prices.
• The Dasa mine development is on track, with production expected to start in Q1 2026. Project financing is progressing, with debt approval anticipated in Q2 2024.
• The Turkish Zinc JV saw improved performance in Q1 2024, achieving positive EBITDA as operations normalized after disruptions in early 2023.

About Global Atomic

Global Atomic Corporation is a publicly traded company focused on becoming a significant uranium producer through the development of its large, high-grade Dasa Uranium Project in Niger. The company also generates cash flow from its 49% interest in the Befesa Silvermet Turkey (BST) Zinc Joint Venture, which operates a zinc recycling plant in Iskenderun, Türkiye. Global Atomic offers investors exposure to the growth potential of uranium along with current zinc production.

Dasa Uranium Project Update

Global Atomic published an updated Feasibility Study for its Dasa Uranium Project in March 2024. The study envisions a 23.75 year mine life from 2026-2049, based on current reserves of 73 million pounds of U₃O₈. Average annual production is estimated at 2.9 million pounds, peaking at 3.9 million pounds in the 2026-2032 period.

At a long-term uranium price of $75/lb, the Dasa Project generates robust economics:

• After-tax NPV8% of $917 million
• After-tax IRR of 57%
• Payback period of 2.2 years

The economics are even more attractive at spot uranium prices, which are currently around $90/lb. At $90/lb, the after-tax NPV8% increases to $1.27 billion and the IRR to 74.8%.

Importantly, Global Atomic has secured uranium offtake agreements for a significant portion of Dasa's initial production. The Company has signed contracts totaling 9.5 million pounds of U₃O₈ over the first 5 years of production. At $90/lb uranium, these contracts represent potential revenues of approximately $770 million. This provides a strong foundation as the Dasa Project advances towards production.

The Dasa mine development is progressing well and remains on track to begin supplying ore to the processing plant in early 2026. The underground ramp has advanced over 1,000 meters to date. Global Atomic is expanding its on-site team as construction activities ramp up in preparation for processing plant construction starting later this year. The Company expects to receive final approval for its project debt financing in Q2 2024, which will fund a majority of the remaining capital costs.

Turkish Zinc Joint Venture

Global Atomic holds a 49% interest in the BST Zinc Joint Venture, which operates an EAFD processing plant in Türkiye. The facility recycles electric arc furnace dust (EAFD) from steel mills to produce a high-grade zinc oxide concentrate.

Operations at the Turkish Zinc JV improved in Q1 2024 after facing challenges in early 2023 related to the earthquakes in Türkiye. In the first quarter, the plant processed 19,990 tonnes of EAFD, a significant increase from Q1 2023. Zinc concentrate sales totaled 9.3 million pounds during the quarter.

The JV generated an EBITDA of $2.3 million (100% basis) in Q1 2024, a notable improvement from Q1 2023 after significant effects of the massive earthquake in Turkiye. This was driven by the higher sales volumes and reduced unit costs for key inputs like EAFD and coking coal, which offset the impact of lower zinc prices. Global Atomic's attributable EBITDA was $0.7 million for the quarter.

Management expects the Turkish Zinc JV to be profitable in 2024 as operations continue normalizing and zinc prices recover. The JV provides steady cash flows to Global Atomic, helping offset a portion of corporate overhead costs.

Strengthened Corporate Position

Global Atomic ended Q1 2024 with a cash balance of $18.6 million. The Company's financial position was bolstered by the receipt of $271,000 in management fees and sales commissions from the Turkish Zinc JV during the quarter.

Looking ahead, the debt financing for the Dasa Project is expected to cover approximately 60% of the remaining capital costs and 50% of any cost overruns. Global Atomic is also exploring other potential funding sources to further strengthen its financial capacity.

Notably, the Company recently announced the adoption of an Advance Notice By-Law, which establishes a clear framework for shareholders to nominate directors. This is a governance best practice that has been adopted by many other Canadian public companies. The By-Law will be presented for shareholder approval at the upcoming Annual General Meeting in June 2024.

Conclusion

Global Atomic presents a compelling opportunity for investors seeking exposure to the uranium sector and its increasingly positive fundamentals. The Company's flagship Dasa Project is a large, high-grade, and economically robust uranium asset that is well-positioned to become a significant supplier as the market improves.

With the updated Feasibility Study showcasing an extended mine life and strong economics, Dasa is even more attractive. The successful negotiation of initial offtake agreements substantially de-risks the early years of the project and validates the market's interest in new supply sources. The mine development remains on track for first production in early 2026, and financing activities are moving forward as anticipated.

At the same time, Global Atomic's Turkish Zinc JV offers investors exposure to current cash flow generation. As operations continue to normalize in 2024, the JV should provide a steady stream of cash flow to support corporate activities and offset costs.

With its strong leadership team, clear strategic vision, and robust asset base, Global Atomic is well-positioned for growth and value creation. The Company offers a unique combination of near-term uranium production potential and existing cash-flowing operations, making it an attractive option for investors interested in the nuclear fuel cycle and critical minerals.