GBLEF - Global Energy Metals Signs Binding Agreement for Royalty Sale on Norway Based Rana Nickel-Copper-Cobalt Project; Increases Equity Holdings in Electric Royalties

December, 16 2021 08:45 AM Global Energy Metals

(TheNewswire)

Vancouver, BC - TheNewswire - December 16, 2021 - GlobalEnergy Metals Corporation ( TSXV:GEMC ) | ( OTCQB:GBLEF ) | ( FSE:5GE1 ) (“Global Energy Metals”, the “Company” and/or“GEMC ”), a company involvedin the investment exposure to the battery metals supply chain, ispleased to announce the signing of the definitive purchase agreementfor the previously announced Rana Nickel Royalty acquisition byElectric Royalties Ltd. (“Electric Royalties” and/or “ELEC”). As announced, Scandinavian Resource Holdings (“SRH”) and GEMCcreated and agreed to sell to ELEC a new 1% Net Smelter Royalty (the“1% NSR”) on four exploration licenses totaling 25 squarekilometers in the Råna mafic-ultramafic intrusion in Northern Norwayand includes the past producing Bruvann Nickel mine (the “RånaProject” or “Råna”).

In connection with closing, ELEC will issue totalconsideration of 2,000,000 common shares of the company(“Consideration Shares”) and $100,000 cash payable to GEMC and SRHin proportion to project ownership. The Consideration Shares will besubject to a voluntary escrow lock-up agreement which provides that50% of the common shares will be subject to a hold period of 4 monthsand one day, 25% for 8 months and the remaining 25% for 12 months.

Rana Nickel Project RoyaltyHighlights

• Includes the past producingBruvan n Ni-Cu-Co mine which hassignificant historical resources remaining after production shut downin 2002 due to low nickel prices;

The Rana Nickel Project is located onthe Ofoten Fjord in Northern Norway and is ice-free year-round. Theproject includes the past producing Bruvann Ni-Cu-Co mine which was inproduction from 1989 until 2002 and processed 8.2 million tonnes ofore at an average grade of 0.52% Ni, 0.1% Cu and 0.02%Co;
The historical estimate of the remainingresource is 9.15 million tonnes at grades of 0.36% Ni, 0.09% Cu and0.01% Co above a cut-off of 0.3% Ni 1 ;

No classification of the estimate was reported. Theestimate is historical in nature and does not qualify as mineralresources under CIM Definition standards and NI 43-101. A qualifiedperson under has not done sufficient work to classify the estimates ascurrent mineral resources and the Company is not treating them ascurrent.

Located in an area with a long history of mining andskilled workforce with available mine infrastructure including power,roads, and conveyor from mine site to existing portfacilities;
Large historical drill database demonstratingcompelling near mine exploration potential;
Under-explored property with demonstrated explorationpotential and re-start potential;
U.K. based Metals One plc to acquire a 90% interest inthe Project with plans to go public on AIM and commit to a £1 millionwork program within the first 12 months;
GEMC to receive cash and share equity in ElectricRoyalties further increasing its exposure to the company and itsgrowing portfolio of technology enabling metal projects.

1 The past production and historicalestimate for the Råna Project is reported in Carl Olaf Mathiesen andRognvald Boyd, 2017: History of exploration of the nickel resources ofthe Råna Intrusion, Nordland, Norway, NGU Report 2017.31, availableat https://www.ngu.no/upload/Publikasjoner/Rapporter/2017/2017_031.pdf

Mitchell Smith,President and CEO commented:

“This transactionwith Electric Royalties is another example of GEMC executing onstrategy and providing shareholders with increased exposure to the rawmaterials that are powering an electrified future. The added benefitof having Metals One plc transact with SRH and commit to a healthyexploration budget aimed at advancing this class-1 nickel sulphideproject is also very encouraging. We look forward to workingalongside all parties in developing this exciting project at a timewhen downstream users race to control more supply of raw materialsthat are key to transitioning to low-carbon energy sources, withnickel one of the key metals used in lithium-ion batteries forelectric vehicles.”

Brendan Yurik, CEO ofElectric Royalties commented:

“Under-explored, historically producingnickel mines like Rana in tier 1 jurisdictions are an excellent placeto search for future nickel supply to fill the looming supply / demandgap in an ESG friendly way and with less risk than greenfieldprojects. We released an asset update last week capping off more than$150 million raised in 2021 by operators of our royalty assets. Nowwith Metals One plc coming in to commit to advance Rana in 2022,we’re expecting major updates on more than 60% of our portfolio nextyear. We’re very excited to see how this modern exploration workproceeds as there is lots of upside and value remaining to be unlockedat the Rana Nickel Project .”

Rana Nickel Royalty DevelopmentUpdate

After signing the letter of intent and prior to closingof this transaction, Global Energy Metals is also pleased to announcethat Metals One Plc. (“Metals One”) has signed a definitive termsheet with SRH to acquire 90% of the Rana Nickel project held by SRHthrough a share, cash and project level expenditure transaction.Metals One, a private U.K. registered company, plans to complete anAIM listing in Q1 2022. GEMC will maintain a 10% interest in theProject and be carried on project level expenditures of up to $1.5million. As part of the agreement Metals One will be committing to a£1 million exploration work program within the first 12 months withplans to release an updated resource within the next 12 to 24 months.

Metals One is an exciting new battery mineralsexploration company focused on assets in the Scandinavian region andon the doorstep of the burgeoning European EV market. More detail onMetals One plc can be found at https://metals-one.com .

Rana Nickel Project ExplorationUpside

All of the mineral occurrences within the 4 mininglicenses at Råna are hosted in the 70km2 Rånamafic-ultramafic intrusion. The most significant of theseoccurrences is the formerly producing Bruvann Nickel Mine which wasoperated from 1989 to 2002 by Nickel og Olivin AS in association withOutokumpu OY. Significant underground resources remain at Bruvannand it is the most important asset on the property. Recentexploration work guided primarily by geophysics elsewhere within thelicenses has shown good potential to discover additional nickel-copperdeposits.

Rana Project Overview

The RånaNickel-Copper-Cobalt project isjointly held by GEMC and SRH and located on the Ofoten Fjord inNorthern Norway and is ice-free year-round. The project includes thepast producing Bruvann Ni-Cu-Co mine which was in production from 1989until 2002 and processed 8.2 million tonnes of ore at an average gradeof 0.52% Ni, 0.1% Cu and 0.02% Co.

The historical estimate of the remaining resource is9.15 million tonnes at approximate grades of 0.36% Ni, 0.09% Cu and0.01% Co above a cut-off of 0.3% Ni. The mineralization is reportedto be open in several directions.

The estimate was obtained from a report prepared by theNorwegian Geological Survey (NGU). No classification of the estimatewas reported. The estimate is historical in nature and does notqualify as mineral resources under CIM Definition standards and NI43-101. A qualified person under has not done sufficient work toclassify the estimates as current mineral resources and the Company isnot treating them as current.

Bruvann is located 2 km away from a shippingdock with an existing conveyor connecting dock facilities from themine site. Mine roads and power facilities as well as some of themine buildings have been maintained and the main North-South highwayin the region crosses the property.

For more information on the Rana Project please referto GEMC’s website linkedhere .

QualifiedPerson

Mr. Paul Sarjeant, P. Geo., is thequalified person for this release as defined by National Instrument43-101 - Standards of Disclosure for Mineral Projects.

Global Energy MetalsCorporation

(TSXV:GEMC |OTCQB:GBLEF | FSE:5GE1)

Global Energy Metals Corp. offersinvestment exposure to the growing rechargeable battery and electricvehicle market by building a diversified global portfolio ofexploration and growth-stage battery mineral assets.

Global Energy Metalsrecognizes that the proliferation and growth of the electrifiedeconomy in the coming decades is underpinned by the availability ofbattery metals, including cobalt, nickel, copper, lithium and otherraw materials. To be part of the solution and respond to thiselectrification movement, Global Energy Metals has taken a‘consolidate, partner and invest’ approach and in doing sohave assembled and are advancing a portfolio of strategicallysignificant investments in battery metal resources.

As demonstrated withthe Company’s current copper, nickel and cobalt projects in Canada,Australia, Norway and the United States, GEMC is investing-in,exploring and developing prospective, scaleable assets in establishedmining and processing jurisdictions in close proximity to end-usemarkets. Global Energy Metals is targeting projects with low logisticsand processing risks, so that they can be fast tracked to enter thesupply chain in this cycle. The Company is also collaborating withindustry peers to strengthen its exposure to these criticalcommodities and the associated technologies required for a cleanerfuture.

Securing exposure tothese critical minerals powering the eMobility revolution is agenerational investment opportunity. Global Energy Metals believe thethe time to be part of this electrification movement.

For FurtherInformation:

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Email: info@globalenergymetals.com

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Cautionary Statementon Forward-Looking Information:

Certain informationin this release may constitute forward-looking statements underapplicable securities laws and necessarily involve risks associatedwith regulatory approvals and timelines. Although Global Energy Metalsbelieves the expectations expressed in such forward-looking statementsare based on reasonable assumptions, such statements are notguarantees of future performance and actual results or developmentsmay differ materially from those in the forward-looking statements.Except as required by law, the Company undertakes no obligation toupdate these forward-looking statements in the event thatmanagement’s beliefs, estimates or opinions, or other factors,should change.

GEMC’s operationscould be significantly adversely affected by the effects of awidespread global outbreak of a contagious disease, including therecent outbreak of illness caused by COVID-19. It is not possible toaccurately predict the impact COVID-19 will have on operations and theability of others to meet their obligations, including uncertaintiesrelating to the ultimate geographic spread of the virus, the severityof the disease, the duration of the outbreak, and the length of traveland quarantine restrictions imposed by governments of affectedcountries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread healthcrisis that could adversely affect the economies and financial marketsof many countries, resulting in an economic downturn that couldfurther affect operations and the ability to finance itsoperations.

For more informationon Global Energy and the risks and challenges of their businesses,investors should review the filings that are available atwww.sedar.com.

Neither TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.

We seek safeharbour.

Company Name:	Global Energy Metals
Stock Symbol:	GBLEF
Market:	OTC
Website:	globalenergymetals.com