Globe Metals & Mining : Dec 2021 Quarter

Globe Metals & Mining

Positioned to be the first new niobium mine in 50 years

ASX RELEASE

only31 January 2022

Ab ut Globe

Gl be Metals & Mining Limited is a Perth based company listed on Australian Stock Exchange (ASX Code: GBE)

useInv stment Summary

100% interest held in Kanyika Niobium Project in Malawi (Africa)

Directors and Management

Ms Alice Wong - Non-Executive Chairperson

personalMr Bo Tan - Non-executiveDirector Mr Ricky Lau - Non-executiveDirector

Mr Michael Barrett - Non-executive Director

Mr Michael Choi - Non-executive Director

Mr Michael Fry - CFO/Company Secretary

Capital Structure

Shares on Issue: 465,922,373

Substantial Shareholders

Apollo Metals: 52.79%

Ao-Zhong International Minerals: 25.36%

Director Holdings

Ms Alice Wong (Apollo Metals): 245,983,611

Contact

ForMichael Fry

C mpany Secretary inf @globemm.comT: [phone]

Quarter ended 31 December 2021

Review of Operations

HIGHLIGHTS

Kanyika Niobium Project

• Mining Licence LM0216/21 issued for the Kanyika Project - refer ASX announcement of 19 August 2021 titled "KNP Mining Licence Granted".
• Advance Payment made to Project Affected Peoples of MWK 220,000 (~USD 270) per household as a goodwill measure and is an advance on the compensation that will be due and payable to persons affected when the persons are required to relocate from site.
• Globe has continued to build its project delivery organisational capability with the appointment of Andrew Simms to the position of Process Engineer and the engagement of two consultant engineers: Ian Langridge and Arnold Bell.
• Engineering team currently undertaking a feasibility into a phased approach to construction and operation which is expected to present an option for a quicker pathway to initial production with reduced up-front capital costs. Doing so ought to enable Globe to commence operations on a smaller scale and to build its business (customers, products, etc) prior to initiating full-scale operations.
• Processing optimisation test-work aimed at reducing the Kanyika Project's capital and operating costs and further developing the Company's intellectual property was ongoing during the quarter.

Development Agreement

• The Company awaits notification from the Government of Malawi for the execution of a Mine Development Agreement (MDA). The MDA establishes key terms and conditions for operation and the fiscal regime for the Project.
• The Company notes that on 24 January 2022, the President of Malawi dissolved his cabinet due to concerns over corruption. A new Minister of Mines has been appointed and Globe will engage with his office as a matter of urgency. The Company anticipates that this will delay the issue of the MDA but hopefully not for an extended time.

Corporate & Finance

• Cash at bank and in term deposits as at 31 December 2021 was $1.018 million (30 September 2021: $1.902 million).
• Post the end of the quarter the Company has finalised and lodged its 2021 research and development return for which it expects to receive a rebate in the order of ~$445k.
• Michael Barrett and Michael Choi were appointed as non-executive directors on 17 December 2021. Mr Alistair Stephens and Mr Bill Hayden both resigned as directors during the quarter.

ASX: GBE

Unit 1, 26 Elliott Street, Midvale

Western Australia 6056

www.globemm.com

P: [phone]

For personal use only

Globe Metals & Mining Limited (ASX Code: GBE) ("Globe" or "the Company") provides its activities report for the quarter ended 31 December 2021.

1. Kanyika Niobium Project

1.1 Exploration Activities During the Quarter

In accordance with ASX Listing Rule 5.3.1, the Company advises that there were no exploration activities planned or conducted during the quarter.

Application has been made to the Ministry of Mines for an Exploration License to cover the same area as EPL0421, which will expire in May 2022.

1.2 Project Studies

During the quarter the Company continued with its processing optimisation testwork aimed at reducing the Kanyika Project's capital and operating costs. As reported in the Company's ASX announcement of 20 October 2021, the work has led to the filing of a Patent Cooperation Treaty (PCT) application for a novel patent covering metallurgical technology for the recovery of pyrochlore that will significantly benefit the Kanyika Project, and which has potential for application to other niobium projects globally and to other commodity types.

The outcome from the examination process of the PCT is expected during the 2022 calendar year.

1.3 Mining Licence

Globe was granted a Large-Scale Mining Licence LM0216/21 on 13 August 2021, signed by the Honourable Rashid Abdul Gaffar, Minister of Mines, pursuant to the Mines and Minerals Act.

LML0216/21 confers on Globe the exclusive right to prospect and mine for a term of a 25 years.

The terms and conditions of the mining licence require that Globe must, amongst other things:

1. pay annual charges prescribed under the Mines and Minerals (Mineral Rights) Regulations 1981 and mineral royalties in accordance with the Mines and Minerals Act.

1. have a right to mine and process pyrochlore

1. endeavour to give employment preferentially to citizens of Malawi

1. endeavour to procure goods and services produced and manufactured in Malawi provided that they can be obtained at competitive terms and in comparable quality.

1. submit reports to the Registrar of Mineral Tenements as required

1. comply with all conditions imposed under Part VIII of the Mines and Minerals Act (No. 8 of 2019).

1.4 Feasibility Study

Upon Globe being granted a mining licence for Kanyika, Globe released the results of its feasibility study (refer ASX announcement of 19 August 2021) which was undertaken to establish the most appropriate configuration for the Kanyika Project and to determine its economic feasibility in a full- scale environment

The results of the Feasibility Study highlighted a robust project with strong financial returns.

More recently, the Company has been investigating a phased approach to construction and commencement of operations which is expected to present an option for a quicker pathway to production with reduced up-front capital costs with the overall objective of allowing Globe to get operating and to build its business (customers, products, etc) prior to initiating full-scale operations.

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1.5 Mine Development Agreement

The Company and the Malawi Government have indicated their desire and intention to execute a Mine Development Agreement, however the execution of the Mine Development Agreement has been delayed due to internal Government departmental processes.

The finalisation and execution of a Mine Development Agreement is an important aspect of the Project as it outlines the fiscal regime under which the Project will operate and sets out the terms upon which the Company is able to develop the minerals contained in the Project, including terms not otherwise required through existing regulations. As such, Globe continues to push for its execution and awaits

Government feedback on the timing of such execution.

On 24 January 2022, Malawi's President Chakwera dissolved his entire cabinet due to concerns over corruption. A new Minister of Mines has been appointed and Globe will engage with his office as a matter of urgency. The Company anticipates that this will delay the issue of the MDA but hopefully not for an extended time.

1.6 Impact of Coronavirus

As at the date of this report the COVID-19 situation in Malawi has worsened with Malawi experiencing a fourth wave of the virus resulting in a surge in the number of infected and a rise in the number of deaths. Cumulatively, Malawi has had a total of 84,224 reported cases of coronavirus with 2,544 having resulted in death. It is estimated that only 7.8% of the population have received 1 dose of the vaccination.

Globe has a small and committed team who have and continue to take all necessary measures to ensure the safety of our team, our partners, the community and the countries in which we operate. The protocols for health safety adopted and maintained by the Company have allowed its staff to continue to meet and work with both Government personnel and communities during this time.

1.7 Community

Conversations on community development programs, relocation of affected persons have been gathering momentum in recent months.

Persons required to relocate from site to facilitate the mining project will receive compensation to be determined by government in consultation with the affected communities.

In recognition of this, the Company has completed an advance payment to Project Affected Persons (refer definition below) of MWK 220,000 (~USD270) per household. Of the 244 households identified as being eligible to receive the advance payment, 242 households accepted the payment resulting in a total payment by Globe of MWK53.24 million (~USD 65,000). Administrative and other costs resulted in program costs of ~USD 75,000.

The payment is a goodwill measure and is an advance on the compensation that will be due and payable to persons affected when the persons are required to relocate from site. To this end, Globe is targeting a Decision to Mine by end of calendar year 2022 and relocation of Project Affected Persons in the first quarter of calendar year 2023; but only upon the giving of proper notice to the Project Affected Persons.

The households to whom this payment was made were those identified in a formal assessment that was undertaken by the Mzimba District Commissioner's Office in consultation with the Traditional Authorities and Malawi government during 2012 as being persons who would be required to relocate in order for the Kanyika Mining Project to proceed (so-called Project Affected Persons).

The advance payments were made during December 2021 and January 2022, with monies being direct debited to a bank account nominated by the relevant household.

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Facilitation of this advance payment was precipitated by a series of community meetings, which involved Village heads and other Traditional Authorities, representatives of non-government organisations, and the Project Affected Persons themselves.

Globe is extremely grateful for the support it has received in this process including, but not limited to, the Traditional Authorities, the District Commissioners, the Development Committees (both district and village), the Lands Ministry, the Ministry of Mines, the non-government organisations, and the Project Affected Persons.

This payment is part of an ongoing process by Globe to forge better and stronger relationships with the Kanyika Community, non-Government groups and representatives of all levels of government and heralds a new era for community relations.

1.8 Project Financing

Good progress was made during the quarter ended 31 December 2021 in relation to off-take and project- funding, with communications between Globe and several parties. Due to the commercially sensitive nature of these discussions, Globe is not in a position to provide any further information at this time. Globe shareholders will be advised as and when material developments occur.

2. Niobium Market Outlook

Globe continues to monitor factors driving niobium demand, supply and pricing and to investigate opportunities for participation and involvement in industries seeking to develop applications requiring niobium.

Background

Approximately 90% of niobium used is consumed as ferroniobium in steelmaking. The remainder is used in a wide range of smaller-volume but higher-value applications, such as high-performance alloys (which include superalloys), carbides, superconductors, electronics and functional ceramics.

Although the unit consumption is very small-fractions of a percent by weight of a tonne of finished steel-the benefits are large. Niobium addition in steel significantly increases strength, so less steel is required overall, which can reduce cost substantially. This has been the basis for the development and growth in its use in steel over the last few decades and should remain the driver in the years to come. Niobium intensity of use is relatively low in several large steel-producing nations such as China, Russia, India and Southeast Asia. The capacity therefore for an increase in the intensity of use of niobium and a potential increasing usage in long products (rebar) provides an area of potential growth in niobium demand. With Chinese regulations now requiring higher ferroalloy loadings in construction, the outlook for both ferroniobium and ferrovanadium demand looks positive.

Almost all ferroniobium supply is from three industrialised producers, two in Brazil and one in Canada. By far the largest is Companhia Brasileira de Metalurgia e Mineração (CBMM), which operates a pyrochlore mine and processing plant near Araxá in east-central Minas Gerais state in Brazil. While historically the company has operated comfortably below operational capacity, recent increases in demand translated into rising operating rates and prompted an increase its ferroniobium capacity by 50% over the period to 2021. The other major producers, Magris Resources in Canada and China Molybdenum in Brazil are thought to be operating at close to capacity.

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Recent Developments & Press

Electric Vehicle Batteries

Use of niobium in electric vehicle batteries continues to gain momentum. In September 2021, CBMM acquired a 20 percent stake in the US battery start-up Battery Streak.

According to Battery Streak;

This investment will allow Battery Steak to drive development and ramp production of its revolutionary, patented materials for a variety of applications including power tools, drones, medical devices, electric scooters, warehouse robots, and EVs, in civilian and military use cases.

Battery Streak's technology allows products to charge ultra-fast, in approximately 10 minutes, while providing a longer cycle life. Additionally, Battery Streak's technology generates very little heat, even at rapid charge.

Source: https://batterystreak.com/battery-streak-nsf-grant-cbbm-investment/

This investment runs alongside CBMM's USD10M investment into Echion, another cutting-edge battery start-up promoting the use of niobium in battery anodes.

Source: https://echiontech.com/echion-completes-10m-series-a/

Medical Applications

The following article was published during the month of September 2021 reflecting the importance of niobium and tantalum to medicine:

Critical twin metals take differing paths

Niobium prefers blue-collar work; tantalum is more high-tech

Countless lives have been saved by diagnoses made with the assistance of magnetic resonance imaging (MRI) scanners, which use niobium superconducting magnets to provide detailed images of the inside of a human body.

Though it is tough to distinguish the nearly identical properties of niobium and tantalum in nature, at the workplace, one of these critical twin metals typically dons a hardhat and boots to work in the construction and energy industries while you are more apt to find the other working in the high-tech sector. Their differences, however, are subtle, and their careers sometimes overlap.

"The leading use of niobium is in the production of high-strength steel alloys used in pipelines, transportation infrastructure, and structural applications," the United States Geological Survey penned in a 2018 report on the indispensable twins. "Electronic capacitors are the leading use of tantalum for high-end applications, including cell phones, computer hard drives, and such implantable medical devices as pacemakers."

While niobium and tantalum typically take differing career paths, they have a common origin story due to the shared traits of these nearly identical twin metals.

"Niobium and tantalum are transition metals that are almost always found together in nature because they have very similar physical and chemical properties," the U.S. Geological Survey wrote in a 2018 paper on the twin metals.

These transition metals share two additional traits that place them high on the list of minerals and metals the USGS has deemed critical to America's security and economic wellbeing - the U.S. is 100% import reliant for both, and you cannot find a good substitute for either without sacrificing performance and increasing costs.

Blue-collar niobium

A tough metal that is resistant to corrosion and boasts an exceptionally high melting point, niobium tends to be the blue-collar working twin.

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