Globe Metals & Mining : Sep 2021 Quarter

Globe Metals & Mining

Niobium - critical to engineering and new and emerging technologies

ASX RELEASE

only26 October 2021

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 A istair Stephens - Managing Director Mr William Hayden - Non-executive Director

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

Substantial Shareholders

Apollo Metals: 52.79%

Ao-Zhong International Minerals: 25.36%

Director Holdings*

Mr Alice Wong: 245,983,611 (52.80%)

Mr William Hayden: 1,276,923 (0.27%)

Director Stephens: 1,325,000 (0.26%) For* both direct and indirect

C ntact

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

Quarter ended 30 September 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".
• Globe has continued to build its project delivery organisational capability with the appointment of three highly experienced and skilled senior personnel; Mr Grant Hudson to the position of General Manager - Corporate Services, Mr Rex Zietsman to the position of Project Leader - Kanyika, and Mr Ravikumar Ramachandran to the position of Project Leader - Refinery.
• Good progress made in relation to off-take and debt-funding, with communications commenced between Globe and several parties.
• Conversations on community development programs, relocation of affected persons also commenced.
• Ongoing processing optimisation testwork aimed at reducing the Kanyika Project's capital and operating costs has led to the filing of an 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.

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.

Niobium - Recent Press

• In mid-October, World Steel Association released its short-range outlook for 2021 and 2022 which predicts that steel demand will grow 4.5% in 2021 and a further 2.2% in 2022 (~90% of niobium is consumed as ferro-niobium in the manufacture of high strength low alloy steels).
• Niobium is critical to quantum computing. According to Harvard Business Review the quantum race is underway. Governments and private investors are pouring billions into quantum research and development. And the likes of IBM, Google, Microsoft, and Amazon are investing heavily in developing large-scale quantum computing hardware and software.
• Use of niobium in electric vehicle batteries continues to gain momentum. Echion Technologies, born out of the laboratories of the University of Cambridge Engineering Department, completed a £10M Series-A funding round in August 2021 boasting that its niobium based anode products enable a unique combination of fast-charge, safety, and high energy density.

Corporate & Finance

• Cash at bank and in term deposits as at 30 September 2021 was $1.902 million (30 June 2021: $2.816 million).

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 30 September 2021.

1. Kanyika Niobium Project

1.1 Exploration Activities During the Quarter

There were no exploration activities conducted during the quarter.

Results of the reconnaissance exploration program conducted in the June 2021 quarter in the southwestern sector of the Kanyika Exclusive Prospecting Licence area (EPL0421) comprising mapping and sampling remain outstanding.

Due to delays being experienced in assay laboratories in South Africa, the decision has been made to ship the samples to Perth for analysis. The results are now expected in the December 2021 quarter.

1.2 Project Studies

The Company has during the quarter continued with its processing optimisation testwork aimed at reducing the Kanyika Project's capital and operating costs. 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 in the new year. A PCT application can protect intellectual property in at least 150 countries.

This novel use of existing technology, together with the outcomes of additional testwork, promise lower project OPEX and CAPEX, lower complexity and increased metallurgical recovery.

By way of example, the 2012 processing flotation regime was designed with 32 chemical agents. The current patent pending technology has reduced this to just 6 chemicals with lower dosage rates. This will reduce capital and operating cost and will significantly reduce the environmental footprint of the project. Early indications suggest that improved recoveries above 75% are possible with further work.

Due to the commercially sensitive nature of this works program, as previously advised, Globe will only provide relevant information at the appropriate time. Managing Director Alistair Stephens commented recently "Secrecy, for the interim, to maintain patentable advantage of this technology across the broader mineral commodity sector, is an important corporate strategy to commercialisation".

Additional variability testwork will need to be undertaken to assess the application of this technology across the greater ore body. Initial testwork does not demonstrate substantial negative variability and the work program will quantity the benefit along strike and with depth. This work program coupled with future drilling at depth during operations has the ability to extend the life of the project to 38 yrs.

1.3 Mining Licence

Globe's wholly owned subsidiary, Globe Metals & Mining (Africa) Limited (GMMA) was granted 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 and is attached below.

Upon receipt of the Mining Licence on 16th August 2021, Globe Managing Director, Mr Alistair Stephens, commented as follows:

"This is a momentous achievement for the Republic of Malawi and its people, the Kanyika community, the Company and the Kanyika Project. The grant ushers in a new era for the Malawi mining industry with the first ever award of a large-scale mining licence under the new Mines Act. It also ushers in a new era for niobium, with Kanyika set to become the first new niobium mine in more than 50 years, subject to financing, off-take and construction."

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A copy of Large-Scale Mining Licence No. LML0216/21 conferring on Globe the exclusive right to prospect and mine for a term of a 25 years is as follows:

Terms and conditions of the mining licence require that GMMA 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).

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1.4 Feasibility Study

Upon Globe being granted a mining licence for Kanyika Globe publicly 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.

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

Study highlights are:

• Kanyika Niobium Project is positioned to be the first niobium mine and first new producer in 50 years.
• Over 90% of niobium is used in the manufacture of High Strength Alloy Steels. Steel production is growing year on year. Intensity of usage in steel is rising rapidly as markets, and in particular China, moves towards the manufacture of higher quality steels.
• Niobium's unique characteristics make it central to many of the world's past, present and future technologies with scientists and manufacturers only now beginning to imagine the range of technological applications for niobium.
• Niobium is critical to military, aerospace, space and medical industries and becoming increasingly important in quantum electronics, in the manufacture of semiconductors and in the electrical vehicle industry.
• Globe will target high-end,high-value applications for niobium.
• A mine life of ~ 23 years with capability to extend mine life to 38 years subject to the conversion of inferred resources through further drilling.
• Average annual production of 3,250 tonnes of niobium and 140 tonnes of tantalum.
• High metal recoveries of ~75% for niobium and ~73% for tantalum
• Patented metallurgical advancements (commercial in confidence) provide competitive advantage allowing substantially simpler beneficiation with greater recovery and lower process OPEX.
• Pre-productioncapital costs of ~USD250m.
• KNP will generate revenues of USD5.6B over its 23-year mine life, valued at a base price of US$55/kg for Nb2O5 and US$410/kg for Ta2O5 mostly as Tantalum K-Salts.
• Net Present Value of US$1B (pre-tax) at a discount rate of 8% per annum.
• Internal Rate of Return of ~50% (pre-tax).
• Payback period of ~ 1.5 years (from first production).
• All approvals in place to immediately commence construction upon funding and relocation of affected persons.
• The Feasibility Study is based on material assumptions outlined in this announcement. Globe considers the material assumptions to be based on reasonable grounds, there is no certainty that they will prove correct or that the range of outcomes indicated will be achieved.

Globe initially commenced its feasibility study in 2009 and suspended further work in 2012 whilst it undertook further studies and awaited issue of a mining licence. In 2018, Globe commenced updating and finalising the technical components of the engineering program in order to support project funding initiatives, in light of the changing outlook for the mining and resources industry, and feedback from the Government of Malawi on anticipated progress of the mining licence and incorporating recent studies and plans associated with the mineral resource, mining, metallurgical studies, processing, engineering design and infrastructural support.

As part of the update of the feasibility study, Globe obtained updated capital and operating cost estimates and updated its financial model for revised capital costs, revenues and operating costs in order to determine key metrics including but not limited to project revenue, profitability and payback.

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The quality of the engineering studies for a large proportion of the plant design qualifies the project as a Class 3, FEL3 standard under AACE1 practices with components at Class 4, FEL2. Since the study has been completed a significant time has passed related to the negotiations on the Development Agreement with the Government, resulting in the associated quotations and related cost estimates being outdated. Parts of the plant where intellectual property has enhanced project metrics are at prefeasibility status where a capital estimate has been allocated but the quantum is not significant to total capital costs but is material to operations. The Company will progress the project to engineering programmes and complete associated marketing and financing agreements and can upgrade the study to an AACE Class 2 FEL4 bankable engineering estimation standard in time.

1.5 Mine Development Agreement

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

1.6 Impact of Coronavirus

As at the date of this report the COVID-19 situation in Malawi is much improved with the daily average of new cases having fallen to six (6). Cumulatively, Malawi has had a total of 61,738 reported cases of coronavirus with 2,296 having resulted in death, 57,029 having recovered and 2,413 active cases.

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 commenced in recent months.

Under the Mines Act, relevant communities within 20 kilometres of the Project have the right to a 0.45% royalty on annual gross sales revenue of mineral concentrate sales at mine gate. The Act states that the "Qualifying Community" must be within 20 kilometres, more than 3,000 persons "which by tradition or by circumstance constitute a social community". While simple in appreciation, the detail of the 20 kilometres radius occurring over different districts, traditional areas or even peoples land, makes the practical application complicated. It is the Company's position that a simple and single Trust should be formed for such royalty benefit and that the Trust then applies its judgment on the nature of Qualified Communities. The Company has sort advise from the Mines and Lands Departments on how this qualification is applied.

Under the Mines Act (s309), land for the Mining licence is to compulsory acquired by the Government with the land deemed a public utility under the Lands Acquisition and Compensation Act. Consultation with the Lands Department has initially resulted in differences in opinion between the Lands Department and the Company on who pays for land acquisition. The Companies position is that is has been granted a 25-year licence with annual lease payments and that the permanent acquisition of land is counter intuitive to the Mines Act and leasing payments.

1 "Association for the of Advancement of Cost Engineering" that is referencing practice for the AUSIMM Cost

Estimation handbook Monograph 27.

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