Th The e Da Dasa Ur Uranium Projec ect t New PE PEA Pha - - PowerPoint PPT Presentation

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Th The e Da Dasa Ur Uranium Projec ect t New PE PEA Pha Phase 1 1 Min Mine Pla Plan GLOBAL AL A ATOMI MIC CORP RPORA RATION Corporate Presentation Q2 2 2020 Disclaimer This presentation has been prepared by the Global Atomic


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SLIDE 1

Th The e Da Dasa Ur Uranium Projec ect t New PE PEA Pha Phase 1 1 Min Mine Pla Plan

GLOBAL AL A ATOMI MIC CORP RPORA RATION

Corporate Presentation Q2 2 2020

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SLIDE 2

This presentation has been prepared by the Global Atomic Corporation (“Global Atomic” or the “Company”) and includes information from sources believed by management to be reliable. No representation or warranty, expressed or implied, is made as to the accuracy of the information set forth herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice. This presentation contains forward-looking statements, estimates and projections with respect to the anticipated future performance of the company that may be deemed to be “forward-looking statements.” These statements, estimates and projections reflect various assumptions made by the Company concerning anticipated results, which may or may not prove to be correct. All statements contained in the presentation that address operating performance, future direction, management and control of the Company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control. Figures as of 14 April 2020

Disclaimer

1 Corporate Presentation Q2 2020

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SLIDE 3

Uranium development underpinned by cash flow from zinc production

Company Overview

2

Ur Uran anium develo lopment, Niger r

(100% GLO)

Dasa sa Uranium, m, Niger ger Stand alone, high grade, high margin, underground operation, in Phase 1 plan

202 2020 Q3: apply for Mine Permit Lev ever erag aged upside, p prote tecte ted downside

C$63 M M Market Cap

Bringing Uranium to market Cash f flow from m recycli ling, Tu Turkey

(49% GLO)

BST, Isk skend nderun, un, Tur urkey New kiln commissioned to produce zinc oxide from EAFD (110,000tpa capacity)

202 2020 Steady state production

Corporate Presentation Q2 2020

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SLIDE 4

Tight shareholder structure, dilution protected by cash flow

TSX: GLO | OTCQX: GLAT ATF | FRA: G1 G12

Capital Structure

3 Sha hare res Is Issued ( (M) M) 145. 45.6 Options 14.4 Warrants 0.4 Fu Fully D Dilute ted 160. 60.4

Major Shareholders

C$63 $63 M M

Market Capitalisation

C$3. $3.8 M M

Cash 31 Dec 2019

43c 3c

Share Price

145 145.6 M 6 M

Shares issued

Stephen G. Roman (10%) Frame Group (7%) Sachem Cove (7%) Befesa (4%) Canaccord (4%) Deutsche Rostoff (3%) Others (66%)

52 week High

56c 6c

52 week Low

28c 8c

Corporate Presentation Q1 2020

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SLIDE 5

Experienced team of mine development and uranium veterans

Stephe hen G

  • G. Roma

man --

  • - Chai

airman, P President a and C CEO

Former director of Denison Mines. Founded, managed and sold Gold Eagle Mines to Goldcorp Inc for $1.5 B. Won “Prospector of the Year”, “Bill Dennis Award” from the PDAC in 2016. Founder of Harte Gold Corp.

Board and Management

4

Georg rge Flac ach, , P. P.Geo --

  • - Vice C

Chairman, V VP Explor lorat ation

  • n

Track record of discovery (approximately 35 Moz gold, 250 Mlbs uranium) over 35 years of exploration history

Pa Paul C Cronin --

  • - Non-exec

ecutive D e Director

CEO of Adriatic Metals and Executive Director of Black Dragon Gold, former CEO of Anatolia Energy. 20 years banking experience, former Vice President of RMB Resources

Richard Fa Faucher --

  • - Non-executive D

Director

  • r

Metallurgical Engineer, former President & GM of Falconbridge Dominicana, COO of Princeton Mining, VP Brunswick Mining and Smelting for Noranda Inc

Derek ek Rance --

  • - Non-executive D

Director

  • r

Professional Engineer and principal of Behre Dolbear & Company Inc. Former: President and COO of Iron Ore Company of Canada, Mine Manager of Dickenson Mine, President and CEO of Cape Breton Development Corp.

Asier Zar arraon

  • nan

andia Ayo --

  • - Non-executive D

Director

  • r

CEO of Befesa Zinc S.A.U. a world leader in electric arc furnace dust recycling since 2006. Former CFO Befesa Aluminium, previously senior manager, auditor and consultant, with Arthur Andersen

Merli lin M Mar arr-Johnson, B , BSc, M , MSc, D , DIC – Exec. V Vice P e Presiden ent

25 years’ experience in the minerals sector. Former: exploration geologist for Rio Tinto, analyst for HSBC, portfolio manager for Blakeney Management, CEO of Palladex plc and Erris Resources plc. Director of Salazar Resources Ltd

Re Rein Lehari ri, CP CPA A --

  • - CFO

FO

Accountant, previously CFO of Silvermet prior to its merger with Global Atomic in 2017. Ex partner at PricewaterhouseCoopers

Fergus Kerr, B , BSc, P , P Eng ng, ARS ARSM – Mini ning ng C Cons nsultant nt

Registered Professional Engineer in the Province of Ontario with >40 years experience in the mining industry mostly senior management in Canadian underground mines

Peter Wolle lenbe berg, B , BSc, M , MSc, P , PhD --

  • - Director o
  • f E

Explor

  • ration
  • n and

Resource D Dev evel elopmen ent

>38 years of experience in uranium exploration and mining. Former VP Exploration for Urangesellschaft, and senior mine geologist at the Cluff Lake uranium mine (COGEMA), and as exploration manager both in Australia and Niger

Tim C Campbe bell ll --

  • - Vice P

President a and Corpor

  • rat

ate Secretar ary

>25 years’ experience in the mining sector focusing on corporate finance, regulatory compliance, government relations and permitting, local community and aboriginal consulting.

Corporate Presentation Q2 2020

Ron H Halas, , P. P.Eng – Chief Operating O Officer

30 years of open pit and underground mining with Kinross, IAMGOLD, Vale, PT Freeport Indonesia, Placer Dome, and Cominco. Mine feasibility, development, and operational experience in Canada, Indonesia, New Caledonia, Suriname, Brazil, and Mauritania.

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SLIDE 6

Corporate Presentation Q2 2020 5

Ura ranium pr m proj

  • jects,

s, Ni Niger

(100% GLO)

New PEA for Dasa project Optimized Phase 1 Mine Plan Mine permit application H2 2020

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SLIDE 7

Phase 1 plan is a low Capex development targeting profitable production over a twelve year mine life

Corporate Presentation Q2 2020

Optimized PEA Highlights (1)

6

US$211 M

NPV8 (post tax) at US$35/lb

27%

IRR (post tax) at US$35/lb

4 years

Payback at US$35/lb

5,396 ppm U3O8

Average LOM grade

US$16.72/lb

C1 Cost

US$203 M

Initial CapEx

44 Mlbs U3O8

LOM uranium produced

4.4 Mlbs U3O8

Average annual steady-state uranium production

US$18.39/lb

AISC Cost

12 years

Mine life

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SLIDE 8

Strong base case economics improve significantly using long-term uranium prices

Corporate Presentation Q2 2020

Optimized PEA Highlights (2)

7

Economic ic sensitivity with varying uran anium pr price ces(1) Ur Uran anium pr price ce (pe per pound) $25/lb $30/lb $35 $35/lb $40/lb $45/lb $50/lb Before-tax NPV PV8 $41 M $139 M $260 M M $365 M $485 M $601 M After-ta tax NPV PV8 $34 M $113 M $21 211 M M $294 M $391 M $485 M After-ta tax IR IRR 11.5% 18.5% 26. 26.6% 32.6% 39.7% 46.3% Economic ic sensitivity with varying discou

  • unt rate

tes usi sing ba base-case uran anium pr price ce $35 35/l /lb Discount rate te (%) 5% 8% 8% 10% 12% Before-tax NPV PV $341 M $260 M M $215 M $177 M After-ta tax NPV PV $279 M $21 211 M M $173 M $141 M

1 Sensitivities used the base case mining model at US$35 per pound uranium

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SLIDE 9

Phase 1 plan focused on 12 year mine life at Flank Zone

Dasa, longitudinal section

8 Schematic l long-section a and hypothetical u underground i infrastructure Corporate Presentation Q2 2020

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SLIDE 10

4.4 Mlb average annual steady state production, 1000tpd, sub-level retreat and fill

Phase 1 mine plan

9 Schematic m mine d development nt a and undergroun und i infrastruc ucture August 2023 2023 December 2025 2025 Septemb mber 2032 2032 Corporate Presentation Q2 2020

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SLIDE 11

Dasa in the heart of a world-class uranium district

Maps

10 10 Corporate Presentation Q2 2020

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A uranium country, a strategic country

11 11

Somaïr

  • pened

1971

Niger er - Uran aniu ium Pr Production sin ince 1971 Orano (ex-Areva) Cominak closing March 2021

Cominak

  • pen

ened ed 197 978 EU, F Fre rench, U US S military s y suppo pport

Sah ahel stab ability A stable Niger is key to regional stability

Elections i in Apri ril 202 2021 Oil D Discoveries Agadem em Basin Sirte B Basin

Strat ategic I Industry Fourth largest global uranium producer

200 2006 New M Mini ning ng Code

Republic of Niger

Corporate Presentation Q2 2020

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SLIDE 13

13 years, 6 licences, 4 discoveries, 1 MoU

Active in Niger since 2005 Global Atomic in Niger

12 12

2007 2008 2009 2010-19 2020

Tin Negouran, 8.8 Mlbs @ 170 ppm, (non-NI 43-101 compliant resource) Dajy Prospect, 16.6 Mlbs @ 689 ppm, (non-NI 43-101 compliant resource) Isakanan, 33 Mlbs @ 896 ppm, (non-NI 43-101 compliant resource) Dasa, >250 Mlbs, 1028 drill holes, five NI 43-101 compliant mineral resource updates PEA, Final Technical Report, and Application for Exploitation Permit MoU with Orano signed 2017

Corporate Presentation Q2 2020

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SLIDE 14

Large, high grade, strategic asset

Dasa uranium project, Niger

13 13

Grade / / Tonna nnage R Report a at V t Varyi ying ng C Cut ut-Off Gr Grades es Cut ut-Off

(e (eU3O8, ppm ppm)

Category Tonne nnes (Mt) t) eU eU3O8 (ppm ppm) Containe ained eU eU3O8 (Mlb lb) 10 100 Indicated 81.6 718 129.1 Inferred 96.1 606 128.4 320 320 Indicated 32.0 1,530 108.0 Inferred 35.0 1,333 102.7 1,200 200 Indicated 7.9 4,483 78.0 Inferred 8.4 3,783 69.9 2, 2,500 500 Indicated 3.6 7,849 61.9 Inferred 3.4 6,838 51.4 10, 0,000 000 Indicated 0.6 24,401 31.1 Inferred 0.8 14,598 25.3

Corporate Presentation Q2 2020

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SLIDE 15

Corporate Presentation Q2 2020 14 14

Befesa Sil ilvermet Tur urkey ( y (BST)

(49% GLO) 110,000 tpa EAFD capacity Cash flow from zinc production

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SLIDE 16

Home of a robust steel industry

Turkey

15 15

World’ d’s 8 8th larges est s steel eel produ ducer er

52 52 Mtpa pa capacity 80% 80%

secondar ary (scr crap)

4 ma main stee eel produc ucti tion n clust usters 23

Ele lectri ric A Arc Fu Furnaces

5

Inductio ion Fu Furnaces

3

Bl Blast st Fu Furnaces

Ele Electric Ar Arc Fur urna nace Dust ust (EAF EAFD)

Waste te Recycli ling BST i in Mediterranean an Cluste ter Sustai ainable able fe feedstock

Corporate Presentation Q2 2020

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SLIDE 17

Map of Turkish steel production centres

Turkey

16 16 Corporate Presentation Q2 2020

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SLIDE 18

New efficient kiln doubles capacity

BST, Iskenderun, Turkey (49% Global Atomic)

17 17

  • 51% a

and nd o

  • pe

perator

  • ma

market l leader in E EAFD r recycling

20 2018 18 60,000 tpa pa

  • 33 Mlbs zinc produced
  • Attributable GLO EBITDA US$10.0 M

2019 Expan ansion

  • n c

comple leted a and p plant com

  • mmission
  • ned
  • US$27 M rebuild funded out of cash flow

202 2020 110,000 tpa pa cap apac acity

  • Modern plant
  • Steady state operation
  • Expected 2 year payback given current

zinc market

Corporate Presentation Q2 2020

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SLIDE 19

Significant near-term value catalysts

Timeline

18 18 Dasa sa, N , Niger ( (100%) BST, T , Turkey ( (49%) %)

H1 2020 H2 2020 2021

Ap Apply f for M Min inin ing P Permit Comp mplete t technical studie ies t to a advanc ance Dasa sa to a a product ction d decision Stea eady s state oper perations (coronavirus p permitting) Grad adual r retir irement o

  • f

pr projec ect l level el d deb ebt Finali lise debt r t repaymen ment, t, ta target f ful ull c capacity y (1 (110, 0,00 000t 0tpa) Robu bust st P PEA re rele lease sed, , dri rill ll water er w wel ells, pr prepa epare application f for Min inin ing P Permit

Corporate Presentation Q2 2020

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SLIDE 20

Strategic uranium assets backed by positive cash flow

Investment Case

19 19

Nig iger pro-mining

  • 50 years of

continuous uranium production

  • Rapid permitting
  • High grade

underground mine

  • Mine Permit

Application in 2020

Tie ier 1 1 Dasa Uran aniu ium Tight e t equity ty structure

  • Mkt cap C$63 M
  • 110,000 tpa capacity
  • Cash flow from zinc

production

BST ST

(4 (49% G GLO)

Corporate Presentation Q2 2020

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SLIDE 21

Supply / Demand deficit continues to grow

Suspe spensi sion

  • n:

Covid-19 related suspensions in Canada, Kazakhstan, Namibia. Overall idled capacity insufficient to meet future demand Deple leti tion: 3 top--ten mines forecast to close before 2030 (Rossing, Cominak, Ranger) Lo Long l lead-times f s for n new p production

  • n:

9 year bear market = underinvestment in exploration & development. Permitting is a key risk Capacity ty s shortf tfall ll: Significant production increase needed to meet future demand

Uranium Market

20 20

SUPPLY

  • 30%

30% since 2015

50 nuclear r r reactor

  • rs u

s under r const stru ruction

  • n in

15 15 c countries

  • Currently 450 operating reactors in 30

countries

  • Installed capacity 400 Gigawatts
  • >10% of world's electricity

Short-term rm d demand i incre rease se ~20 r 20 reactors scheduled f for r start-up p within 1 1 year Base seloa

  • ad demand unaffected b

by Covid-19 19 Prod

  • ducers

rs b buying in spot m t market t t to meet t supply contr tract o t obli ligati tions

DEMAND ND +49% +49% by 2040

Corporate Presentation Q2 2020

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SLIDE 22

8 King St E, Suite 1700 Toronto, ON M5C 1B5 Tel: +1 416 368 3949 info@globalatomiccorp.com

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