Globe Metals & Mining : Dec 2020 Quarter

Globe Metals & Mining

Niobium - Celebrating Excellence in Engineering

onlyASX RELEASE

21 January 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 December 2020

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 various meetings with Government and community bodies aimed at achieving execution of the Development Agreement, which is the last remaining condition precedent to the issue of a Mining Licence for the Kanyika Project.
• Work also included further processing optimisation testwork and further refinement of the processing and engineering design reduce 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. The Company remains ready, willing and able to execute the Development Agreement which is a precursor to marketing, financing and development.

COVID / Malawi Government

• Second wave of COVID pandemic has hit Malawi hard in recent weeks with Malawi experiencing a steep rise in the number of persons infected with the virus and in the number of deaths.
• On 12 January 2021, President Chakwera declared a State of National Disaster. The declaration is the first step towards a possible declaration of a state of emergency.

Corporate & Finance

• Cash at bank and in term deposits at 31 December 2020 was $3.925 million.
• The Company's Annual Report was lodged with ASX on 21 October
  2020 and can be downloaded from the ASX website at asx.com.au (ASX: GBE).
• The Company's Annual General Meeting was held at 11am on Wednesday, 25 November 2020. Results of the Meeting available for download from the ASX website at asx.com.au (ASX: GBE).
• On 14 December 2020, the Company announced the appointment of Mr Ricky Lau as a non-executive director and the resignation of Mr Alex Ko.

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 2020.

1. Kanyika Niobium Project

1.1 Exploration Activities During the Quarter

There was no 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.

Globe has been working with the Government on a Development Agreement in earnest since 2012.

Meetings were held with high level government officials during the quarter and as far as Globe is concerned there is nothing, that Globe is aware of, preventing the execution of the Development Agreement and associated agreements. As previously stated, Globe remains ready, willing and able to execute.

1.4 Impact of Coronavirus

The situation in Malawi has deteriorated considerably in recent weeks with the number of new cases reported on a daily basis having spiked sharply as Malawi experiences a second wave of the pandemic.

In the most recent update dated 20 January 2021 it is reported that there has been 13,880 coronavirus cases recorded of which 336 have resulted in death including in recent days two Malawi Government ministers; with 235 of the 336 COVID-19 related deaths occurring during the second wave of the pandemic which commenced in early November 2020.

On 12 January 2021, President Chakwera declared a State of National Disaster. The declaration is the first step towards a possible declaration of a state of emergency.

Government offices and workplaces are presently closed from the public with interactions restricted to electronic means. It is unclear when Government offices will reopen to the public.

The country's border is shut, with the only way in and out of the country being by aeroplane subject to restrictions.

Globe has a small, nimble 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.

Despite the changed circumstances, our team remains focussed on execution of a Development Agreement ahead of construction and mining at Kanyika, once financing and offtake are complete.

The Company remains optimistic about our ability to progress the Kanyika Niobium Project and believes the outlook for the commodity markets specifically, Niobium, will remain strong.

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1.5 Community

In November 2020, the Ministry of Mines provided verbal approval for Globe to proceed and meet informally with 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, consistent with Section 168 of the Mines and Minerals Act (2018). This is a positive and encouraging move as the previous Government had restricted the Company from any engagement with the community.

In accordance with protocols, Globe has sent a letter to the District Commissioner requesting a meeting with the Kanyika Community. As at the date of this publication no response form the District Commissioner has been forthcoming.

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.

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

According to a recent report, 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. 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$70 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.

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(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)

Similarly, Worldsteel are forecasting that total steel production will increase by 4.1% to 1.795 billion tonnes during 2021 (Source: Worldsteel Association Short Range Outlook October 2020;https://www.worldsteel.org/steel-by-topic/statistics/short-range-outlook).

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

3. Corporate

3.1 Cash at Bank

Cash at bank for the Company remains robust with A$3.925 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 December 2020, 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	69
Managing Director Fee	96
TOTAL	165

4. Schedule of Mineral Tenements as at 31 December 2020

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 December 2020, nor was there any change in the ownership percentage of existing tenements since the end of the previous quarter.

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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]

Disclaimer

• This report has been prepared by Globe Metals & Mining Limited ("Company"). The material contained in this report is for information purposes only. This release is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and nether this release nor anything contained in it shall form the basis of any contract or commitment.
• This report may contain forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Globe Metals & Mining Limited's business plans, intentions, opportunities, expectations, capabilities and other statements that are not historical facts. Forward- looking statements include those containing such words as could-plan-target-estimate-forecast-anticipate-indicate-expect-intend-may-potential-should or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and which could cause actual results to differ from those expressed in this report. Because actual results might differ materially to the information in this report, the Company does not make, and this report should not be relied upon as, any representation or warranty as to the accuracy, or reasonableness, of the underlying assumptions and uncertainties. Investors are cautioned to view all forward-looking statements with caution and to not place undue reliance on such statements.
• The report has been prepared by the Company based on information available to it, including information from third parties, and has not independently verified. No representation or warranty, express or implied, is made to the fairness, accuracy or completeness of the information or opinions contained in this report.
• The Company estimates its reserves and resources in accordance with the Australasian Code for Reporting of Identified Mineral resources and Ore Reserves 2012 Edition ("JORC Code"), which governs such disclosures by companies listed on the Australian Securities Exchange.

Mineral Resource Estimates

• The information in this report that relates to Mineral Resources is extracted from the report titled "Kanyika
  Niobium Project - Updated JORC Resource Estimate" released to the Australian Securities Exchange (ASX) on 11 July 2018 and available to view at www.globemm.comand for which Competent Persons' consents were obtained. Each Competent Person's consent remains in place for subsequent releases by the
  Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.
• The Company confirms that is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 11 July 2018 and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons' findings are presented have not been materially modified from the original ASX announcement.
• Full details are contained in the ASX announcement released on 11 July 2018 titled "Kanyika Niobium Project - Updated JORC Resource Estimate" available to view atwww.globemm.com

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