Globe Metals & Mining : Mar 2021 Quarter

Globe Metals & Mining

Niobium - Celebrating Excellence in Engineering

onlyASX RELEASE

12 April 2021

About 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

Mr Alistair Stephens - Managing Director personalMr William Hayden - Non-executiveDirector

Mr Bo Tan - Non-executive Director Mr Ricky Lau - Non-executive Director Mr Michael Fry - CFO/Company Secretary

Capital Structure

Shares on Issue: 465,922,373

Sub tantial Shareholders

Apollo Metals : 52.79%

Ao-Zhong International Minerals: 25.36%

Contact

Alistair Stephens

Managing Director [e-mail]

ForT: [phone]

Quarter ended 31 March 2021

Review of Operations

SUMMARY

Kanyika Niobium Project

• Company continues to work with Government, stakeholders, specialist consultants and advisory parties to advance the Kanyika Project.
• Work during the quarter involved meetings with Government and community bodies aimed at achieving execution of the Development Agreement.
• Work also included further processing optimisation testwork and further refinement of the processing and engineering design aimed at reducing the Kanyika Project's capital and operating costs.

Development Agreement

• Globe personnel continue to work closely with the Malawi Government with the aim of execution of the Development Agreement. There are reasonable grounds for the Company to consider the terms and conditions of the Agreement as final. The subsequent issue of the Mining Licence is a precursor to marketing, financing and development activities.
• Post quarter end, Globe met with the Mzimba Development Executive Committee where it provided an overview of the Kanyika Project. The meeting was well attended by Senior Chief Mabulabo and sixty (60) of the invited Committee Members.

COVID / Malawi Government

• More recently, the COVID situation has improved; however the country remains on alert in a "state of disaster'.
• Schools, universities and government departments have recently re- opened.

Corporate & Finance

• Cash at bank and in term deposits as at 31 December 2020 was $3.506 million.
• The Company's Half Year Accounts were lodged with ASX on 15 March 2021 and can be downloaded from the ASX website at asx.com.au (ASX: GBE).

ASX: GBE Unit 1, 26 Elliott Street, Midvale Western Australia 6056 www.globemm.com P: [phone]

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

1. Kanyika Niobium Project

1.1 Exploration Activities During the Quarter

During the quarter, Globe's in-country team initiated a reconnaissance exploration program in the south-western sector of the Kanyika Exclusive Prospecting Licence area (EPL0412) which will continue to completion in the coming quarter. The work will comprise general reconnaissance, geological mapping and rock-chip sampling. The cost of the program is estimated at less than US$5,000.

There was no other substantive exploration activity during the quarter.

1.2 Project Studies

The Company has during the quarter continued its broad review of the latest processing technologies to assess cost reduction and optimisation options and continues to undertake further processing optimisation test-work.

Due to the commercially sensitive nature of this works program, as previously advised, Globe will provide relevant information at the appropriate time.

1.3 Tenure - Update on Development Agreement

The execution of a Development Agreement with the Government of Malawi is a condition on the conversion of the Application for Mining Licence into a granted Mining Licence; and will allow the Company to move forward with project funding and marketing arrangements.

Meetings were held with senior government officials during the quarter. It is the Company's opinion that the terms and conditions of the Agreement are final and execution of the Development Agreement and associated agreements will occur once internal Government processes and approvals grant its execution. As previously stated, Globe remains committed to project development.

1.4 Impact of Coronavirus

The situation in Malawi has improved in recent weeks with the number of new cases reported on a daily basis having fallen and stabilised.

As at 31 March 2021, Malawi has had a total of 33,505 reported cases of coronavirus with 1,114 having resulted in death.

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.

1.5 Community

In November 2020, the Ministry of Mines provided verbal approval for Globe to proceed and meet informally with the leaders and the people of the District and of the Kanyika Community in relation to the Community Development Agreement. The Community Development Agreement (provided to the Malawi Government together with the Project Feasibility Study by Globe in late 2020) forms part of the Social Responsibility Programmes that the Company has tabled with Government for consideration and approval.

Once the Government provides approval of these programmes, formal meetings can be entertained with the Kanyika Community and additional programme details can be fulfilled that meet community expectations. Part of the Community Development Agreement is the provision of a 0.45% royalty that provides the community with direct financial benefits from the proposed mining project.

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On 7 April 2021, Globe presented to the Mzimba Development Executive Committee arranged and chaired by Mr Precious Kantsitsi, Planning Director, M'mbelwa District Assembly, in response to Globe's request to the Mzimba District Commissioner for a meeting to discuss the Community Development Agreement Plan.

The meeting was well supported with Senior Chief Mabulabo from Kanyika and all sixty (60) of the invited Committee Members in attendance. The District Executive Committee provided approval for Globe to present to the Kanyika Community the project development plans including Social Responsibility Programmes and the Community Development Agreement Plan. Chief Mabulabo stated that over the years he has always had a good relationship with Globe and is pleased the project is approaching implementation. He welcomed the project of behalf of the Kanyika Community and has provided approval for the Company to meet with the local Kanyika community (specific to the Mining Licence application area) to discuss project development plans and social responsibility programmes.

A picture of the audience at the meeting appears below.

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 rest goes into a wide range of smaller-volume but higher-value applications, such as high-performance alloys (which include superalloys), carbides, superconductors, electronic components 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 additions 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 of steels 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, but also India and Southeast Asia. The capacity for an increase in niobium intensity of use and a potential increasing usage in long products (rebar) provide an area of potential growth in niobium demand. With Chinese regulations now requiring higher ferroalloy loadings in construction, the outlook for ferroniobium and ferrovanadium demand, looks positive.

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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.

Recent Developments

Electric Vehicle Batteries

According to a recent report, metals from Group 5 of the periodic table (vanadium, niobium and tantalum) are likely to find their way into more vehicle batteries in an effort to boost performance.

The report highlights that:

• With the goal of further reducing ─ or even eliminating ─ cobalt and moving beyond the energy limits of the present cathode generation, Group 5 metals could enable battery electrode designs with demonstrated capacities in excess of 250 mAh/g in the next ten years.
• Group 5 metals excel at safety and power density beyond extending the lifespan of the electrochemical system.
• Group 5 metals may advance nickel-rich cathodes for batteries and lead the way to charging EVs as fast as filling up conventional cars.

(Source: https://medium.com/batterybits/how-strategic-metals-could-drive-next-gen-li-ion-batteries- f680b2c20656)

Further adding to the forecast increased use of niobium in electric batteries, is a report from Reuters published on 9 February 2021 that Brazilian mining company CBMM, the world leader in niobium with an estimated 85% market share, is expecting to sell 45,000 tons of niobium oxide by 2030, up from just 100 tons this year, with niobium oxide sales to rise to ~25% of the company's revenue if forecasts are met. (Source:Brazil miner CBMM seeks to sell 45,000 tons of niobium oxide by 2030 | Nasdaq)

Steel Production

According to recent reports by Worldsteel, the structural steel market, which is a large consumer of niobium, has kicked off the 2021 calendar year on a high note building on the strong recovery that started in the final quarter of 2020 with January 2021 and February 2021 crude steel production up 4.8% and 4.1% respectively when compared with the corresponding months of the prior year.

The momentum has been driven by surging steel prices, with the iron ore price rising sharply in recent months and is currently trading at around US$170 per tonne, compared with a price 12 months ago of ~US$60 per tonne, on the back of rising steel demand amid a supply shortage and prospects of an infrastructure stimulus package this year from the Biden administration. (Source: Steel Industry Starts 2021 on Upbeat Mood;https://au.finance.yahoo.com/news/steel-industry-starts-2021-upbeat-122912476.html).

The latest report from Roskill states that niobium demand during 2020 has benefited from record steel production in China (whose production exceeded the billion-tonnes mark in 2020, an all-time high), but was negatively impacted by a weak demand from aerospace, automotive and energy. Roskill is predicting in 2021 that the niobium market should benefit from the higher steel demand, primarily from the world ex-China, with niobium prices most likely increasing. (Source: Roskill: China hits new all-timehigh steel production in 2020;https://roskill.com/news/steel-alloys-china-hits-new-all-time-high-steel-production-in-2020and Roskill: Niobium Outlook to 2030;https://roskill.com/market- report/niobium)

The consensus view is that the positive sentiment for steel production and demand bodes well for niobium demand and pricing.

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3. Corporate

3.1 Cash at Bank

Cash at bank for the Company remains robust with A$3.506 million at bank on call or in term deposit.

3.2 Payments to related parties of the entity

In accordance with the requirements of ASX Listing Rule 5.3.5 the Company advises that during the quarter ended 31 March 2021, the following payments were made to directors of the Company in respect of their directors' fess (inclusive of superannuation):

	A$'000
Non-executive Directors' fees	55
Managing Director Fee	96
TOTAL	151

4. Schedule of Mineral Tenements as at 31 March 2021

In accordance with the requirements of ASX Listing Rule 5.3.3 the Company provides the following information.

	Project		Status		Tenement			Interest held
					by Globe
Malawi	Kanyika	Under application		AML0026	100%
Malawi	Kanyika	Granted		EPL0421/15R	100%

AML- Application for Mining Lease. A renewal application was lodged for this tenement and the Company awaits formal feedback on its renewal.

EPL - Exclusive Prospecting Licence (Malawi)

No tenements were acquired or disposed during the quarter ended 31 March 2021, nor was there any change in the ownership percentage of existing tenements since the end of the previous quarter.

5. Authorisation for Release

This report has been authorised for release by the Company's Managing Director, Alistair Stephens.

For further information contact:

Alistair Stephens Managing Director [e-mail]: [phone]

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