Global Atomic : Consolidated Financial Statements for the Three Months Ended March 31, 2024 & 2023

GLOBAL ATOMIC CORPORATION

CONDENSED INTERIM

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED

MARCH 31, 2024 & 2023

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

Global Atomic Corporation
Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars) (Unaudited)
			As at
	Note		31-Mar		31-Dec
	reference		2024		2023
ASSETS
Current assets
Cash and cash equivalents		$	18,572,407	$	24,857,915
Accounts and other receivables	4,12		625,754		683,283
Prepaid expenses			194,022		207,700
			19,392,183		25,748,898
Non-current assets
Property, plant and equipment	5		145,905,549		129,986,343
Intangible assets			316,098		339,155
Advance payments for mineral properties	5		10,514,586		7,525,740
Exploration and evaluation assets	6		1,536,432		1,370,358
Investment in joint venture	7		13,523,632		12,628,251
Total assets		$	191,188,480	$	177,598,745
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities	8	$	7,856,360	$	6,745,812
Current portion of long-term debt	9		1,342,925		1,342,373
Current portion of lease liabilities	10		2,654,097		2,746,023
			11,853,382		10,834,208
Non-current liabilities
Long-term accounts payable and accrued liabilities	8		1,626,000		1,587,120
Long-term debt	9		3,137,431		3,471,736
Long-term lease liabilities	10		2,927,186		3,519,912
Total liabilities			19,543,999		19,412,976
Equity
Share capital	13		180,972,303		169,428,131
Share purchase warrants	14		6,870,754		8,477,302
Contributed surplus	15		21,970,244		21,532,188
Retained earnings (deficit)			(16,573,798)		(18,956,976)
Accumulated other comprehensive (loss)			(22,059,112)		(22,723,881)
Shareholders' equity			171,180,391		157,756,764
Non-controlling interests in subsidiary	19		464,090		429,005
Total equity			171,644,481		158,185,769
Total liabilities and equity		$	191,188,480	$	177,598,745
Commitments and contingent liabilities	20

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

On behalf of the Board:

"Stephen G. Roman"	"Dean Chambers"
Stephen G. Roman	Dean Chambers
Chairman, President & CEO	Non-Executive Director

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Global Atomic Corporation

Condensed Interim Consolidated Statements of Income (Loss)

(Expressed in Canadian Dollars) (Unaudited)

			Three months ended March 31,
	Note
	reference		2024		2023
Revenues		$	271,463	$	130,841
Revenues from operations			271,463		130,841
General and administration	11		2,199,221		2,832,831
Finance income, net			(241,631)		(71,468)
Foreign exchange (gain) loss			(3,750,362)		1,210,716
Share of net (income) loss from joint venture	7		(333,686)		1,388,274
Net income (loss) before income taxes		$	2,397,921	$	(5,229,512)
Current income tax expense			-		-
Deferred income tax expense			-		-
Net income (loss)		$	2,397,921	$	(5,229,512)
Net income (loss) attributable to:
Shareholders of the Company			2,383,178		(5,237,663)
Non-controlling interests	19		14,743		8,151
Basic net income (loss) per share	17		$0.01		($0.03)
Diluted net income (loss) per share	17		$0.01		($0.03)
Basic weighted-average number of
shares outstanding	17		208,080,080		184,583,128
Diluted weighted-average number of
shares outstanding	17		213,208,175		184,583,128

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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Global Atomic Corporation
Consolidated Statements of Comprehensive Income (Loss)
(Expressed in Canadian Dollars) (Unaudited)
		Three months ended March 31,
		2024		2023
Net income (loss) for the period	$	2,397,921	$	(5,229,512)
Other comprehensive income for the period
Items that may be subsequently classified to statements of income
Currency translation adjustment of Niger operations		123,416		1,129,759
Currency translation adjustment of joint venture		561,695		1,589,017
		685,111		2,718,776
Total other comprehensive income	$	685,111	$	2,718,776
Comprehensive income (loss)	$	3,083,032	$	(2,510,736)
Comprehensive income (loss) attributable to:
Shareholders of the Company		3,047,947		(2,518,218)
Non-controlling interests		35,085		7,482

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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Global Atomic Corporation

Condensed Interim Consolidated Statements of Changes in Equity

(Expressed in Canadian Dollars) (Unaudited)

					Share				Retained		Other	Attributable to
	Note				Purchase	Contributed		Earnings	Comprehensive	Shareholders of	Non-controlling
	reference	Share Capital		Warrants		Surplus		(Deficit)		Income	the Company		Interests
Balance, December 31, 2023		$	169,428,131	$	8,477,302	$	21,532,188	$	(18,956,976)	$	(22,723,881)	$	157,756,764	$	429,005	$ 158,185,769
Warrants exercised	13,14		10,606,548		(1,606,548)		-		-		-		9,000,000		-	9,000,000
Stock option expense	15		-		-		826,004		-		-		826,004		-	826,004
Stock options exercised	15		937,624		-		(387,948)		-		-		549,676		-	549,676
Net income (loss)			-		-		-		2,383,178		-		2,383,178		14,743	2,397,921
Other comprehensive income (loss)		-		-		-		-		664,769		664,769		20,342	685,111
Balance, March 31, 2024		$	180,972,303	$	6,870,754	$	21,970,244	$	(16,573,798)	$	(22,059,112)	$	171,180,391	$	464,090	$ 171,644,481
Balance, December 31, 2022		$	108,306,043	$	4,126,058	$	14,656,139	$	(2,353,296)	$	(23,657,112)	$	101,077,832	$	431,492	$ 101,509,324
Shares issued			49,640,922		6,361,579		-		-		-		56,002,501		-	56,002,501
Shares to be issued			25,000		-		-		-		-		25,000		-	25,000
Share issue costs			(4,028,322)		-		-		-		-		(4,028,322)		-	(4,028,322)
Broker warrants issued			-		509,176		-		-		-		509,176		-	509,176
Stock option expense			-		-		1,497,157		-		-		1,497,157		-	1,497,157
Stock options exercised			1,467,389		-		(633,229)		-		-		834,160		-	834,160
Net income (loss)			-		-		-		(5,237,663)		-		(5,237,663)		8,151	(5,229,512)
Other comprehensive income			-		-		-		-		2,719,445		2,719,445		(669)	2,718,776
Balance, March 31, 2023		$	155,411,032	$	10,996,813	$	15,520,067	$	(7,590,959)	$	(20,937,667)	$	153,399,286	$	438,974	$ 153,838,260

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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Global Atomic Corporation

Condensed Interim Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars) (Unaudited)

			Three months ended March 31,
	Note
	reference		2024		2023
Cash generated from (used in)
Operating activities
Net income (loss)		$	2,397,921	$	(5,229,512)
Unrealized foreign exchange (gain) loss			(3,649,634)		1,131,677
Share of net (earnings) loss from joint venture	7		(333,686)		1,388,274
Stock option expense	15		826,004		1,497,157
Depreciation expense			61,241		69,644
Interest income			(249,500)		(71,468)
Interest expense on lease liability			2,917		15,253
			(944,737)		(1,198,975)
Non-cash working capital items:
Accounts receivable			57,529		(30,895)
Prepaid expenses			13,678		42,564
Accounts payable and accrued liabilities	8		(1,901,265)		(152,862)
Cash flows used in operating activities			(2,774,795)		(1,340,168)
Financing activities
Public offering and private
placement of common shares	13		-		56,002,501
Share issue costs	13		-		(2,777,280)
Common shares to be issued			-		25,000
Warrants exercised	14		9,000,000		-
Stock options exercised	15		549,676		834,160
Repayment of lease obligations			(836,747)		(215,976)
Repayment of long-term debt			(457,323)		-
Cash flows generated from financing activities			8,255,606		53,868,405
Investing activities
Advance payments for mineral properties			(4,422,239)		(1,938,333)
Purchase property, plant & equipment	5		(7,402,080)		(6,953,529)
Purchase intangible assets			-		(68,560)
Exploration and evaluation expenditures	6		(165,566)		(54,030)
Interest received			249,500		71,468
Cash flows used in investing activities			(11,740,385)		(8,942,984)
Net change in cash			(6,259,574)		43,585,253
Effect of exchange rate changes on cash			(25,934)		68,359
Cash, beginning of period			24,857,915		8,400,008
Cash, end of period		$	18,572,407	$	52,053,620
Interest paid during the period		$	2,917	$	15,253

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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Global Atomic Corporation

Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

1. Nature of Operations

Global Atomic Corporation and its subsidiaries (collectively, the "Company" or "Global Atomic") have two principle lines of business:

1. the processing of electric arc furnace dust ("EAFD") obtained from steel companies in Türkiye through a Waelz kiln process to recover zinc concentrates that are then treated by zinc smelters ("EAFD Business"); and
2. the acquisition, exploration and development of uranium properties in Niger ("Uranium Business").

Global Atomic Corporation, the ultimate parent, is a corporation incorporated under the laws of Ontario, Canada and its registered office is 8 King Street East, Suite 1700, Toronto, Ontario, M5C 1B5. Global Atomic Corporation is also the highest level at which these financial statements are consolidated.

The Company's EAFD activities are conducted through Befesa Silvermet Turkey, S.L. ("BST"), a Spanish incorporated joint venture with Befesa Zinc S.A.U. ("Befesa"). The joint venture is held 51% by Befesa and 49% by Global Atomic. The relationship between the joint venture partners is governed by a Shareholders Agreement. The joint venture was established to operate EAFD activities within Türkiye. At present, BST operates one EAFD facility located in Iskenderun, Türkiye, through wholly-owned subsidiaries. The unaudited condensed interim consolidated financial statements for the three months ended March 31, 2024 and 2023 reflect the impact of using the equity method to account for Global Atomic's interest in the joint venture, with the Company's share of net earnings and net assets separately disclosed (Note 7).

The Company's mineral resource properties are located in Niger. Through its wholly-owned subsidiary, Global Atomic Fuels Corporation ("GAFC"), the Company held six Mining Agreements and related Exploration Permits, on which it has conducted exploration activities for uranium. The Exploration Permits expired on December 17, 2023. GAFC holds a 100% interest in the shares of Global Uranium Niger Inc.("GUNI"), a Niger corporation through which GAFC conducts its exploration activities. In accordance with the new Niger Mining Code, GUNI has applied for new Exploration Permits ('Cahiers des Charges"). Management expects that such Exploration Permits will be granted shortly.

On December 23, 2020, GAFC was granted a Mining Permit for the Dasa Project on behalf of a Niger mining company to be incorporated. The Mining Permit has an initial term of 10 years and is renewable until the resource has been fully depleted. The Company's Niger mining subsidiary, Société Minière de DASA S.A. ("SOMIDA") was incorporated on August 11, 2022 with an initial share capital of 2 billion West African CFA Franc ("CFA") ($3,985,627). In accordance with the mining agreement signed by GAFC and the Republic of Niger on September 25, 2007, the latter received a 10% free carried interest in the mining subsidiary and exercised its right to subscribe to an additional 10% by making its respective contribution of CFA 200 million ($398,563) to the initial share capital of SOMIDA, resulting in a total ownership of 20% of the shares of SOMIDA. Under the terms of the Company's Mining Agreement, the Republic of Niger commits to fund its proportionate share of capital costs and operating deficits for such additional 10% interest. The Republic of Niger has no further option to increase its ownership.

2. Basis of Presentation and Statement of Compliance

The unaudited condensed interim consolidated financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards ("IFRS") and IFRS Interpretations Committee ("IFRIC") interpretations applicable to companies reporting under IFRS, including IAS 34, Interim Financial Reporting and include the operating results of Global Atomic and its subsidiaries and joint ventures. Accordingly, certain information and disclosure normally included in annual financial statements prepared in accordance with IFRS have been omitted or condensed. These unaudited condensed interim consolidated financial statements should be read in conjunction with the Corporation's annual financial statements for the year ended December 31, 2023, which were prepared in accordance with IFRS.

These unaudited condensed interim consolidated financial statements as at and for the three months ended March 31, 2024 and 2023 were authorized for issuance on May 13, 2024 by the Global Atomic Board of Directors.

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Global Atomic Corporation

Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

3. Material Accounting Policy Information, Accounting Standards and Amendments

The accounting policies adopted are consistent with those of the Company's financial statements for the year ended December 31, 2023.

4.	Accounts and Other Receivables
			March 31,	December 31,
			2024		2023
Management fees & sales commissions receivable (Note 12)	$	415,543	$	351,629
Harmonized sales tax receivable		210,034		331,457
Other			177		197
Total accounts and other receivables	$	625,754	$	683,283

5. Property, Plant and Equipment and Advance Payments for Mineral Properties

Property, plant and equipment balances as at March 31, 2024 and December 31, 2023 are as follows:

				Plant and		Right of use
	Mineral property		equipment		asset		Total
COST
Balance at December 31, 2022		74,340,064		8,376,066		1,179,400		83,895,530
Additions		8,235,081		1,292,857		223,373		9,751,311
Exchange differences		(76,398)		(7,250)		19,891		(63,757)
Balance at March 31, 2023		82,498,747		9,661,673		1,422,664		93,583,084
Additions		31,900,096		7,543,595		7,225,708		46,669,399
Exchange differences		(3,114,417)		(371,853)		(153,797)		(3,640,067)
Balance at December 31, 2023		111,284,426		16,833,415		8,494,575		136,612,416
Additions		13,471,103		233,652		-		13,704,755
Exchange differences		3,518,980		416,556		173,855		4,109,391
Balance at March 31, 2024	$	128,274,509	$	17,483,623	$	8,668,430	$	154,426,562
ACCUMULATED DEPRECIATION
As at December 31, 2022		-		(1,143,195)		(517,619)		(1,660,814)
Depreciation		-		(445,146)		(108,321)		(553,467)
Exchange differences		-		(1,697)		(13,735)		(15,432)
As at at March 31, 2023		-		(1,590,038)		(639,675)		(2,229,713)
Depreciation		-		(2,493,708)		(2,091,118)		(4,584,826)
Exchange differences		-		70,840		117,626		188,466
As at December 31, 2023		-		(4,012,906)		(2,613,167)		(6,626,073)
Depreciation		-		(1,108,297)		(656,800)		(1,765,097)
Exchange differences		-		(86,720)		(43,123)		(129,843)
As at March 31, 2024	$	-	$	(5,207,923)	$	(3,313,090)	$	(8,521,013)
NET BOOK VALUE
As at December 31, 2023	$	111,284,426	$	12,820,509	$	5,881,408	$	129,986,343
As at March 31, 2024	$	128,274,509	$	12,275,700	$	5,355,340	$	145,905,549

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Global Atomic Corporation

Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

5. Property, Plant and Equipment and Advance Payments for Mineral Properties (Continued)

At March 31, 2024, advance payments for mineral properties amounting to $10.5 million consist of contractual deposits paid to suppliers and are related to advances made for long lead items and materials to be used in the mining and processing for the Dasa Project (December 31, 2023: $7.5 million).

Mining Code of the Republic of Niger

On July 5, 2022, the President of the Republic of Niger signed into law a new Mining Code to consolidate the various amendments to the prior Mining Code and clarify certain aspects. Notwithstanding, all existing Mining Agreements and Permits remain valid for their existing terms. Global Atomic's Adrar Emoles 3 Mining Agreement also contain a further provision to guarantee the stability of the duties, taxes, royalties and tax benefits as they existed at the time the Mining Agreement was entered into, unless the rates drop, in which case, the holder of the Mining Agreement will benefit from the lower rates.

The mining royalty rates under the former Mining Code and the Mining Agreement are based on a 5.5% to 12% of revenues dependent on earnings margins. Under the new Mining Code, the royalty rate on uranium mining is fixed at 7%.

The Company expects the provisions of the new Mining Code will apply to SOMIDA after the expiry of the current Mining Agreement in September 2027. The Mining Code refers to numerous regulations, which have not yet been announced. Until such regulations are announced, the Company is not able to fully assess the impact of the new Mining Code on SOMIDA's operations.

Under the new Mining Code, the concept of an umbrella Mining Agreement covering both the exploration and exploitation phases no longer applies. Exploration Permits (known as Cahiers des Charges) are now separately issued for a period of 4 years with two 3 year renewals. Upon application for a Mining Permit, a Niger mining corporation is established to enter into a Mining Convention that includes all the terms and conditions of operations that were previously included in the umbrella Mining Agreements. The rights of the Republic of Niger to a free carried interest plus the right to participate at a higher level have not changed.

6. Exploration and Evaluation Assets

On December 22, 2017, upon the acquisition of GAFC, the Company acquired the following permits and associated exploration and evaluation assets in the Republic of Niger:

Adrar Emoles Exploration Permits

In September 2007, GAFC entered into two Mining Agreements for a term of twenty years with the Republic of Niger and was subsequently granted the Adrar Emoles 3 and 4 Exploration Permits. With the granting of the Dasa Project Mining Permit on December 23, 2010, the area of the Mining Permit (approximately 25 km2) was carved out from the Adrar Emoles 3 Exploration Permit.

The Exploration Permits for Adrar Emoles 3 and 4 expired on December 17, 2023 and application has been made by GUNI for new Exploration Permits on these properties under the new Mining Code. Management expects the granting of these Exploration Permits imminently.

Tin Negoran Exploration Permits

In February 2007, GAFC entered into four Mining Agreements for a term of twenty years with the Republic of Niger and subsequently was granted the Tin Negoran 1, 2, 3 and 4 Exploration Permits. These permits expired on December 17, 2023 and in accordance with the new Mining Code, GUNI is applying for a new Exploration Permit.

The Company's exploration activities are as follows:

		March 31,		December 31,
		2024		2023
Exploration and evaluation assets - beginning	$	1,370,358	$	1,115,983
Drilling, assays and related costs		165,566		241,167
Exchange differences		508		13,208
Exploration and evaluation assets - ending	$	1,536,432	$	1,370,358

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Global Atomic Corporation

Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

7. Investment in Joint Venture

At March 31, 2024, the Company holds a 49% (December 31, 2023: 49%) interest in the BST joint venture, with the remaining 51% held by Befesa. The BST joint venture is governed by the Shareholders Agreement between the joint venture partners that requires unanimous approval for certain key strategic, operating, investing and financing policies of the BST joint venture. The investment in the BST joint venture is accounted for using the equity method. There are no publicly quoted market prices for BST.

Summarized financial information of BST on a 100% basis is as follows:

Summarized consolidated statements of financial position:

				March 31,		December 31,
				2024		2023
Assets
Current assets
Cash and cash equivalents	$	3,102,023	$	2,533,472
Other current assets (excluding cash and cash equivalents)		7,021,735		9,856,601
Non-current assets	(1)		37,606,748		36,218,046
			$	47,730,506	$	48,608,119
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	3,300,071	$	5,979,308
Income tax payable		247,725		-
Loans payable	(2)			12,241,532		12,652,168
Long-term liabilities
Loans payable	(2)			3,246,630		3,165,198
Other long-term liabilities (excluding loans payable)		1,095,299		1,039,504
			$	20,131,257	$	22,836,178
Net assets			$	27,599,249	$	25,771,941
The Company's equity share of net assets of joint venture	$	13,523,632	$	12,628,251

Note 1: Non-current assets comprise $23.6 million property, plant and equipment plus $14 million deferred tax asset ($22.8 million property, plant and equipment plus $13.3 million deferred tax asset at December 31, 2023).

Note 2: At March 31, 2024, loans payable comprise US$11.4 million revolving credit facility with an effective interest rate of 11% (US$12 million at December 31, 2023).

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