GLOBE METALS & MINING LIMITED — Capital/Financing Update 2014

Oct 20, 2014

ASX RELEASE

ASX RELEASE 30 June 2013

21 October 2014

Kanyika Demonstration Plant Completed with Outstanding Improvements

Investment Summary

• ASX listed resources company (ASX:GBE)

• 100% interest held on projects in Malawi including niobium, graphite and rare earths

• Malawi Kanyika Niobium project in feasibility optimisation

Globe Metals & Mining (“ Globe ” or “ the Company ”; ASX:GBE) announces the completion of the Kanyika demonstration pilot plant at Guangzhou Research Institute of Non‐Ferrous Metals (GZRINM).

Highlights

• Major improvements to grade and recovery are achieved;

Directors and Management

Non‐Executive Chairperson Ms Alice Wong

• Managing Director Mr Alistair Stephens

• Executive Director & Deputy CEO

• Ms Shasha Lu

• Non‐Executive Director

• Mr Jingbin Tian

• Independent Non‐executive Director

Mr William Hayden Mr Bo Tan Mr Alex Ko

• CFO & Company Secretary Ms Kerry Angel

• Concentrate grade averages 24% Nb2O5,

• Nb2O5 recovery averages 77%,

• Concentrate grades up to 35% are achievable,

• Flotation process is now optimised and the flowsheet substantially derisked,

• Blending of mineralisation now not critical resulting in improved mine scheduling (yet to be evaluated)

• Concentrate samples are available for downstream testing and evaluation.

FPOS 469,729,062 OPTIONS 9,100,000 (various)

Contact

Alistair Stephens Managing Director info@globemm.com T: +61 08 9327 0700

Globe Metals and Mining Ltd | Level 1, Suite 2, 16 Ord Street, West Perth, WA, 6005 | PO Box 1811 West Perth WA 6872 | P: +61 8 9327 0700 F: +61 8 9327 0798 | web: www.globemetalsandmining.com.au | Email: info@globemm.com | ABN 33 114 400 609 | ASX:GBE

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Background on Demonstration Work

The Kanyika demonstration plant was undertaken as part of the Kanyika Niobium Project (KNP) optimisation to complete the Definitive Feasibility Study (DFS). The demonstration plant goals were to:

• 1) Operate on a continuous basis and optimise the process,

• 2) Reduce operating costs,

• 3) Improve recovery,

• 4) Produce higher concentrate grade, and

• 5) Produce concentrate sample for downstream market evaluation.

In 2013 the Guangzhou Research Institute for Non‐Ferrous Metals (GZRINM) was engaged to undertake metallurgical optimisation for the KNP concentrator. Initial results indicated a hydroxamic acid‐based flotation reagent scheme improved metallurgical performance over previous reagent schemes.

Given the nature of oxide flotation circuits such as that proposed for the KNP, Globe considered it prudent to undertake a demonstration pilot plant. A 40‐tonne bulk sample was collected from the KNP site and shipped to GZRINM in China.

Kanyika Demonstration Plant Programme

Prior to operation of the demonstration plant, preparatory work was undertaken that involved crushing and homogenising samples and bench‐scale flotation work. This was followed by plant commissioning and process optimisation where process conditions were gradually and systematically modified to allow optimal conditions and results to be achieved. The demonstration plant exercise is now complete.

Summary of Results

A summary of the grade and recovery results obtained from plant operations are presented in Table 1. Each of these results is an average of the mineralisation type and a representative result from multiple days of plant operation. The data shows that niobium pentoxide (Nb2O5) recoveries are above 75% and concentrate grades are above 22% Nb2O5.

Table 1: Summary of Concentrate Grade and Niobium Recovery achieved in Kanyika Demonstration Plant.

Sample type	Concentrate Grade (% Nb2O5)	Nb2O5 Recovery (%)
Blended	26	75.1
Surface & Transitional	25	80.3
Deep	22.1	76.4

A portion of the demonstration plant campaign was dedicated to obtaining an understanding of the concentrate grade – recovery relationship. It was found that concentrate grades up to 35% could be

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produced, however increasing the concentrate grade reduces Nb2O5 recovery. Therefore emphasis was placed on maximising recovery over concentrate grade. The concentrate mass yield was generally between 1‐3% of feed mass; an outstanding result compared to the mass yield achieved in typical flotation plants. A simplified diagram of the processing flowsheet is shown in Figure 1.

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Figure 1: Simplified Kanyika Concentrator Flowsheet.

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Process is De‐risked and Mining Schedule Improvements Expected

The results of the demonstration plant validated the results of earlier optimisation tests by demonstrating an effective improvement in concentrate grades and increases in Nb2O5 recoveries. This represents a significant de‐risking of the flowsheet as the test results were achieved under continuous and steady state conditions.

The pilot plant also demonstrated that blending of the mineralisation prior to processing is not as critical as initially envisaged for grade‐recovery optimisation. It was found that the process is able to produce comparable Nb2O5 recoveries regardless of mineralisation type. This result is significant as it eases metallurgical restrictions previously imposed on the Kanyika mining schedule. The associated economic benefit will be quantified in a mining optimisation study.

Validated Engineering Data for Plant Design

A significant amount of process data was collected during operation of the plant to aid further engineering design in a Front‐End Engineering Design (FEED) phase prior to plant construction. The data collected confirms the concentrator design undertaken in 2012, with minor improvements likely to be implemented in the reagent preparation area and in the sizing of flotation cells.

Product Samples Available for Evaluation

A 150 kg sample of mineral concentrate has been produced from the demonstration plant, which is stored for further downstream evaluation and marketing.

Commentary and Next Steps

Globe’s MD Alistair Stephens commented;

“Globe is delighted with the results achieved by Prof. Zhang and the team at GZRINM. There were numerous challenges along the way which the team has successfully overcome. The program has improved recovery, improved concentrate grade, eased the metallurgical restrictions on the mining schedule, and made improvements to the plant design. These alone make the demonstration plant exercise a remarkable success”.

Globe will use these results for re‐modelling of the project economics. Globe will then endeavour to finalise product marketing and off‐take aspects of the KNP, while continuing Development Agreement (DA) negotiations with the Government of Malawi.

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Competent person: The in f ormation in t h is ASX release relating to me t allurgical eval u ation is based o n informatio n compiled by Dr Marc St e ffens. Dr Steff e ns is a Memb e r of the Austr a lasian Institut e of Mining an d Metallurgy ( M AusIMM) and is a full‐time employee of Globe Metal s and Mining. D r Steffens con s ents to the in c lusion in the r e port of matt e rs based on hi s information in the form a nd context in which it appears.

ENDS

For further information:

Contact:

Alistair Stephens Managing Director Globe Metals & Mining Ltd Tel: +61 (0 ) 8 9327 070 0

Shasha Lu Depu t y CEO and Ex e cutive Direc t or Globe Metals & Mi n ing Ltd Tel: + 6 1 (0) 8 9327 0 700

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About Globe Metals & Mining

Globe is a resources c o mpany, wit h a strategy t o grow the c ompany’s global investm e nt opportu n ities in the minerals i n dustry.

Globe’s co r porate head office in Pert h , Australia is supported b y a regional o p erational of fi ce in Lilong w e, Malawi.

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