Global Atomic Announces 2019 Results - Seite 2

2019 was a year of great progress for the Company. The BST Iskenderun plant was expanded, modernised and commissioned, and it is now a state-of-the-art facility capable of operating profitably at historically low zinc prices. I would also like to thank our partner Befesa S.A and the team at Iskenderun for completing the project on time and on budget and with an excellent safety record.

The Dasa uranium project has advanced and we look forward to publishing the results of the Optimized PEA next quarter which will give the market a clear understanding of the project’s economic potential. Global Atomic will then focus on the submission of a Final Technical Report to the government of Niger in our application for a Mining Permit, which would be a major milestone for the Company.

Global Atomic graduated to the TSX Main Board in May and added an OTCQX listing in September, and continued to build out the team for the next phase of growth. Global Atomic is well-positioned to be a leading player in the anticipated uranium equities upturn, with the additional benefit of having its value underpinned by profitable zinc production. As a team, we are sure that Dasa can provide fuel to the nuclear industry and we are proud that this project will play such a vital role in low-carbon energy supply to assist our beleaguered planet.”

OUTLOOK

BST, Iskenderun, Turkey

• The modernized BST plant in Iskenderun is anticipated to operate at approximately 75% capacity during 2020, in line with the expectations for the Turkish steel industry. At the current zinc price of approximately $0.80/lb, the plant generates positive cash flow.

• Once market conditions and zinc prices recover, BST will generate increased cash flows and benefit from its CDN $16.8 million tax credit carry-forward.

• Dividend flow will resume following repayment of construction costs.

Dasa Uranium Project, Niger

• The proposed development plan for the Dasa Project is a high-grade underground mine with a standalone plant using conventional processing techniques. CSA Global was engaged to provide an Optimized Preliminary Economic Assessment (“OPEA”) on these parameters, and the OPEA will be released in Q2, 2020.

• Environmental Impact (“EIS”) and Hydrogeology Studies are underway, with field work being completed in compliance with Niger Government guidelines regarding the COVID-19 coronavirus.

• Global Atomic will combine the OPEA, the Hydrogeology report and EIS into a Final Technical Report ("FTR”). The FTR is the key mining permit application document that will be submitted to the Government of Niger later this year.

• Limited infill drilling is also being planned with the aim to upgrade certain Inferred Resources to Indicated Resources in the current mine plan
• Global Atomic anticipates the Mining Permit to be issued in 2021.

• Once the Mine Permit is issued, Global Atomic will be in a position to finalize the engineering and geotechnical work needed to construct the project.

• Discussions continue with Orano Mining about the potential processing of Global Atomic mineralized rock at Orano facilities in Arlit, thereby reducing the initial capital investment to bring Dasa into production.

Summarized income statement and financial position information is shown as follows: