GBLEF - Global Energy Metals Signs Earn-In and JV Agreement with Metal Bank Limited to Advance Its Millennium Cobalt-Copper-Gold Project In Queensland Australia

(TheNewswire)

Vancouver, BC - TheNewswire - December 13, 2021 - GlobalEnergy Metals Corporation ( TSXV:GEMC ) | ( OTC:GBLEF ) | ( FSE:5GE1 ) (“Global Energy Metals”, the “Company” and/or“GEMC ”), a company involvedin investment exposure to the battery metals supply chain, is pleasedto announce that it has entered into a formal earn-in and jointventure agreement (“JV Agreement”) with MBK Millennium Pty Ltd.(“MBKM”), a wholly owned subsidiary of Metal Bank Limited (“Metal Bank” and/or “MBK”) in favourof MBKM to earn-in up to an 80% interest in the Millennium Copper,Cobalt and Gold Project in Mount Isa, Queensland (“MillenniumProject”) owned by GEMC’s wholly owned subsidiary, ElementMinerals Australia Pty Ltd (“EMA”).

The MillenniumProject is an advancedexploration and development project located in the Mount Isa region,19km from the Rocklands copper-cobalt project which is host to 55.4Mtof Resources grading 0.64%Cu, 0.15 g/t Au, 290ppm Co (0.90%CuEq) 1 . The MillenniumProject holds an inferred 2012 JORC resource of 5.89Mt @ 1.08%CuEq 2 across 5 grantedMining Leases with significant potential for expansion.

1 CDU:ASX Announcementdated 31 October 2017

2 HMX ASX Announcement dated6 December 2016 “Millennium Mineral Resource Estimate”. Copperequivalent (CuEq) calculation was based solely on commodity pricesusing prices as follows: Cu: US$4,600/t; Co: US$27,000/t; Au:US$1,330/oz; and Ag: US$20/oz

The Stage 1 earn-in phase has commenced. During thisstage, MBK will sole fund exploration expenditures of $1M over thenext year to earn a 51% interest in the Project.

As part of its Stage 1 earn-in obligations, MBK willissue 31,250,000 shares to GEMC based on an issue price of $0.008,being the 30 day VWAP as at close of business on Friday 10 December2021.

The terms of the JV Agreement are summarised in thisannouncement.

Highlights

• MBK has exercised its option to earnin stages up to an 80% interest in the Millennium Project;

• Earn-in and joint venture agreementsigned;

• GEMC to receive 31,250,000 shares inMBK as initial consideration for the option in Millennium;

• In conjunction with significantincreases in copper and cobalt prices since maiden Resource reporting,results from exploration success supports an initial ExplorationTarget for the Project of 8-10Mt @ 1.0-1.1% CuEq*;

• MBK has developed a $1 millionthree-phase work program including up to 5,500 metres of drilling for2022 to test key outcomes to confirm the exploration target andResource expansion and development program; and

• With recent successful capitalraising by MBK, GEMC will benefit from having a well funded partner topursue exploration and development work at Millennium aimed atincreasing the project’s Resources

  
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Figure 1: Millennium copper-cobaltlong section showing current (2016) Inferred Resource model, resourcedrilling traces and CuEq%-metre intersections, interpretedmineralisation shoots, and priority targets for Phase 1 work programto define and confirm the Exploration Target and project scale priorto resource and peripheral exploration drilling. Refer to Appendix 1and 2 drill hole CuEq% and location details.

NB: Intervals shown calculated at a 0.5% CuEq minimumreportable value, 1 metre minimum width and 3m internal dilution<0.2% CuEq (not as per individual elements). Lost sample intervals(if present) form breaks. CuEq% calculated as per Inferred Resource(Haren, 2016) using the following metal values: Cu: US$4,600/t; Co:US$27,000/t; Au: US$1,330/oz; and Ag: US$20/oz with the respectiveformula of CuEq = Cu% + (Co% x 5.9) + (Au g/t x 0.9) + (Ag g/t x0.01).

Mitchell Smith, President & CEOcommented:

“We are pleased to have enteredinto a partnership with a group that shares our position thatMillennium is a project with great potential for the discovery of aglobally significant battery metals resource at a time when ramping upand sourcing supply is so critical to the electrification movement. I am very pleased to say that we have achieved this with Metal Bank,an organization with the financial and technical capability to growthis project to its full potential. We are extremely excited to beworking with them and executing on our strategy in advancing ourprojects through peer collaboration and building exposure to thecritical metals powering an electrified future.”

Commenting on the signing of the JVAgreement, Metal Bank’s Chair, Inés Scotland said:

“ We are very excited to be moving forwardwith the Millennium project. Our exploration success at the MillenniumProject has enabled a significant Exploration Target to be estimatedfor the project and our earn-in work program is aimed at convertingthat target into JORC Resources, as well as following up on thesignificant cobalt results from our drilling earlier this year.   Wewelcome GEMC as a MBK shareholder and look forward to continuing towork with them to advance the Millennium Project. ”

Following completion of its recent drill program, MBKcommenced a review of the existing currentInferred Resource in the Southern and Central Areas of the Project,MBK’s recent drill results and other previous drilling.

In conjunction with significant increases in copper andcobalt prices since maiden Resource reporting, results from thisreview provided support for an initial Exploration Target for theProject of 8-10Mt @ 1.0-1.1% CuEq.* This Exploration Target is basedon extensions both along strike and down dip in both the Southern andCentral copper-cobalt-gold resource areas and also in the NorthernArea, where shallow copper intervals at broad spacing have beenreturned some 800-1000m north of the closest resource.

*It should be noted that the Exploration Target isconceptual in nature. There has been insufficient drilling at depth ofthe existing Resource and in the Northern Area of the project andinsufficient information relating to the Reasonable Prospects ofEventual Economic Extraction (RPEEE) of the Millennium project toestimate a Mineral Resource over the Exploration Target area, and itis uncertain if further study will result in the estimation of aMineral Resource over this area. It is acknowledged that the currentlyavailable data is insufficient spatially in terms of the density ofdrill holes, and in quality, in terms of MBK’s final auditprocedures for down hole data, data acquisition and processing, forthe results of this analysis to be classified as a Mineral Resource inaccordance with the JORC Code and/or NI 43-101 reportingrequirements.

In addition to the Exploration Target areas, there area number of adjacent and/or peripheral drill ready targets includingthe Corella and Federal Trends plus key conceptual targets down dip ofthe Northern, Central and Southern Areas towards and/or adjacent theFountain Range/Quamby Fault system. Scree and alluvial cover alsoobscure surface geology and geochemical signatures in areas, adding toprevious exploration complexity.

MBK has developed a three-phase work program for 2022seeking to test key outcomes to confirm the Exploration Target andfuture resource expansion and development potential.

The work program comprises:

• Phase 1 – 1800-2000m RC/DD Exploration Targetconfirmation of scale drilling program. The aim of this program willbe to test open Southern and Central Area shoots at depth, the shallowNorthern Area extension and infill, and the adjacent Pilgrim/FountainRange/Quamby Fault Zone resource potential;

• Phase 2 – 2000m RC drilling extension program toInfill resource gaps, extend near surface existing resources, firstpass testing of peripheral targets and Phase 1 follow-up; and

• Phase 3 – 1500m RC Resource infill, economicassessment and follow-up work from Phase 1 and 2.

MBK is currently assessing drilling tenders forcommencement of Phase 1 after the end of the wet season in March2022.

Summary of the Earn-In and JVAgreement

The JV Agreement is between MBK and EMA and includesMBK and GEMC as parties to guarantee their respective subsidiaries’obligations until the Joint Venture (JV) is formed. The JV areaincludes all of the Millennium mining leases and a 30km 2 area around them. MBKM will manage the project during theStage 1 Earn-in and has the right to appoint the manager of the jointventure so long as it holds a majority joint venture interest.

The JV Agreement provides for three stages asfollows:

• Stage 1 Earn-in, during which MBKM will sole fundexploration expenditure to earn a 51% Joint Venture interest and theright to either:

  • form the JV and move to Stage 2, at which time MBK mustissue shares to GEMC (or its nominee) equivalent in value to $350,000,based on the 30 day VWAP of MBK shares at the date of MBKM givingnotice to move to Stage 2; or

  • give notice to buy-out 29% of EMA’s remaininginterest, with MBKM taking an 80% interest in the project inconsideration of the payment by MBKM of $1M in cash and the issue ofMBK shares to GEMC (or its nominee) equivalent in value to $250,000,based on the 30 day VWAP of MBK shares at the date of MBKM giving thebuy-out notice. In the event such notice is given and theconsideration is paid, the Stage 3 Joint Venture will be formed on an80% MBK, 20% EMA basis.

• Stage 2 Joint Venture, with MBKM holding a 51% JVinterest. During this Stage MBKM will sole fund explorationexpenditure of $2M to earn an additional 29% interest in the JV,taking MBKM’s JV interest to 80%.

• Stage 3 Joint Venture, where MBKM holds an 80% JVinterest and EMA holds a 20% JV interest and each party contributesits percentage share of expenditure.

In addition to the above, upon MBKM completing itsStage 2 expenditure commitment and moving to an 80% JV interest, EMAmay elect to require MBK to buy out EMA’s remaining 20% interest forshares in MBK at a value to be agreed, or failing agreement to bedetermined by an expert. If EMA does not exercise this right, theStage 3 Joint Venture will proceed with both parties jointly fundingexploration, feasibility and development expenditure in theirproportionate shares.

The JV agreement provides for:

• formation of a management committee, comprisingrepresentatives of each party, to oversee the management of theJV;

• decisions of the management committee by majority vote,excluding specific significant decisions requiring a unanimous vote,including disposal of the mining tenements;

• provision of cross securities by each joint venturer infavour of the other;

• restrictions on dealing with JV interests, includingrights of pre-emption;

• dilution of joint venture interests in accordance witha standard industry formula upon a monetary default, including a partyfailing to contribute its share of budgeted expenditure;

• a non-defaulting joint venturer having the right to buyout the interest of a defaulting joint venturer; and

• other terms and conditions usual in agreements of thisnature.

The Millennium Project

The Millennium Project is a significant advancedcopper-cobalt-gold project with a large defined zone of copper-cobaltmineralisation that remains open for expansion at depth and alongstrike. Copper-cobalt mineralisation is associated with shear zoneshosted within a sequence of volcanic and sedimentary units.

The Millennium Project is strategically located ongranted mining leases, less than 20 km from the Rocklands mine siteand processing facility and within the economic and infrastructure hubof Mount Isa, Queensland.   The Mt. Isa Mineral Province isrecognized as a world-class mining region, with more than a quarter ofthe world’s lead and zinc reserves, 5% of the world’s silverresources and 1.5% of the world’s copper resources.

In 2017 and 2018, GEMC conducted a 10-hole, 1,141 metredrilling campaign on the Millennium Project to test the up-dipcontinuity at the Millennium North deposit and confirm historicalestimates of cobalt mineralization reported in 2016 by Hammer Metals. The program was successful in both duplicating historical results,demonstrating the continuity of mineralisation within the mineralisedzone and in determining mineralisation continues to depth, including28 metres of @0.35% Cu and 0.2% Co (MIRC026). Significantly, cobaltand copper mineralisation was encountered along the entire targeted1,500 metre strike length with the zones remaining open in alldirections.

Mapping, soil geochemistry and rock sampling conductedby GEMC identified an additional 1.5 km of anomalous cobalt-coppermineralisation in geological analogues that occur along a potentialstrike extension in the northern half of the tenement package(“ NorthernExtension ” ).  This area has no previousdrilling to date and provides an excellent opportunity to increase theoverall resource potential of the Millennium Project.   TheMillennium mining leases also include the Corella and Federalprospects, along a parallel zone of significant surface Cu-Co-Auanomalism and historical workings, that are untested by drilling andprovide yet further potential to grow the resource base.

Rock chip sampling was also conducted by GEMC to testfor additional zones of cobalt and copper mineralisation along theMillennium trend and in particular the Northern Extension wheresimilar host rock units and strong soil geochemical anomalies arelocated. This zone is located approximately 1 km north of the currentMillennium Resource as defined.  The continuation of elevated soilarsenic and copper geochemistry and presence of anomalous cobalt andcopper in rock chip samples and analogous geology between the Millennium Resource area and the NorthernExtension indicate that this area is a priority target for furtherinvestigation.

GEMC also conducted initial metallurgical test work onthe Millennium Project in 2018, reporting cobalt and copper recoveriesexceeding 95%.

For more information on the Millennium Project pleaserefer to the Company’s website:https://www.globalenergymetals.com/projects/millennium-cobalt-project/

Metal Bank Limited

Metal Bank Limited is an ASX-listed mineralsexploration company (ASX:MBK).

Metal Bank’s core focus is creating value through acombination of exploration success and quality project acquisition.The company’s key projects are the 8 Mile and Eidsvold gold projectssituated in the northern New England Fold Belt of central Queensland,which also hosts the Cracow (3 Moz Au), Mt Rawdon (2 Moz Au), MtMorgan (8 Moz Au, 0.4Mt Cu) and Gympie (5 Moz Au) gold deposits. Theprojects are both associated with historical goldfields and representintrusion related gold systems (IRGS) with multi-million-ounceupside.

The Company has an experienced Board and managementteam which brings regional knowledge, expertise in early stageexploration and project development, relevant experience in the midcap ASX-listed resource sector and a focus on sound corporategovernance.

The Company is committed to a strategy ofdiversification and growth through identification of new explorationopportunities which complement its existing portfolio and pursuit ofother opportunities to diversify the Company’s assets throughacquisition of advanced projects or cash-flow generating assets toassist with funding of the exploration portfolio.

In pursuit of this strategy, MBK holds a significantportfolio of advanced gold and copper exploration projects, withsubstantial growth upside, including:

• a 75% interest in the Livingstone Gold Project inWestern Australia;

• the right to earn up to 80% of the Millennium Copper Cobalt project which holds an inferred 2012 JORC resource of 5.9Mt @1.08% CuEq 1 across 5 grantedMining Leases with significant potential for expansion; and

• the 8 Mile, Wild Irishman and Eidsvold Gold projects inSouth East Queensland where considerable work by MBK to date hasdrill-proven both high grade vein-style and bulk tonnageintrusion-related Au mineralisation.

Qualified Person

Mr. Paul Sarjeant, P. Geo., is the qualified person forthis release as defined by National Instrument 43-101 - Standards ofDisclosure for Mineral Projects.

Global Energy MetalsCorporation

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

Global Energy Metals Corp. offers investment exposure to the growingrechargeable battery and electric vehicle market by building adiversified global portfolio of exploration and growth-stage batterymineral assets.

Global Energy Metals recognizes thatthe proliferation and growth of the electrified economy in the comingdecades is underpinned by the availability of battery metals,including cobalt, nickel, copper, lithium and other raw materials. Tobe part of the solution and respond to this electrification movement,Global Energy Metals has taken a ‘consolidate, partner and invest’approach and in doing so have assembled and are advancing a portfolioof strategically significant investments in battery metalresources.

As demonstrated with the Company’scurrent copper, nickel and cobalt projects in Canada, Australia,Norway and the United States, GEMC is investing-in, exploring anddeveloping prospective, scaleable assets in established mining andprocessing jurisdictions in close proximity to end-use markets. GlobalEnergy Metals is targeting projects with low logistics and processingrisks, so that they can be fast tracked to enter the supply chain inthis cycle.  The Company is also collaborating with industry peersto strengthen its exposure to these critical commodities and theassociated technologies required for a cleaner future.

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

For FurtherInformation:

Global Energy MetalsCorporation

#1501-128 West PenderStreet

Vancouver, BC, V6B 1R8

Email: info@globalenergymetals.com

t. + 1 (604) 688-4219

www.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 diseasesin the human population could result in a widespread health crisisthat could adversely affect the economies and financial markets ofmany countries, resulting in an economic downturn that could furtheraffect 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.

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