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GLOBE METALS & MINING LIMITED Capital/Financing Update 2014

Aug 24, 2014

64965_rns_2014-08-24_4371d2bd-acc4-44d5-816f-d7df807b4a0b.pdf

Capital/Financing Update

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ASX RELEASE

ASX RELEASE 30 June 2013

25 August 2014

Investment Summary

  • ASX listed resources company (ASX:GBE)

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

Machinga Nb‐Ta & REE Project Update

Globe Metals & Mining (“ Globe ” or “ the Company ”; ASX:GBE) has completed a soil and rock chip sampling programme at its Machinga project, in Malawi.

  • Malawi Kanyika Niobium project in feasibility optimisation

Highlights

Directors and Management

  • Non‐Executive Chairperson Ms Alice Wong

  • Managing Director Mr Alistair Stephens

  • Executive Director & Deputy CEO

  • Ms Shasha Lu

    • The results of assays of 224 soil and 79 rock chip samples indicated potential niobium (Nb), tantalum (Ta) and rare earth element (REE) mineralisation.

    • Preliminary geological investigations indicate similarities with Globe’s Kanyika Niobium Project.

  • 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

FPOS 469,729,062 OPTIONS 9,450,000 (various)

  • Soil samples returned assays up to 2,490ppm Nb2O5 and 134ppm Ta2O5, which compares favourably with soil samples collected from over the KNP resource.

  • Rock chips assays up to 2,812ppm Nb2O5 and 180ppm Ta2O5, are similar to the resource grade of the KNP

  • In addition to the Nb‐Ta results, there are anomalous soil sample assays of up to 3,675ppm Total Rare Earth Oxides (TREO) including 391ppm yttrium (Y),

  • The sampling programmes to date (2013 & 2014) have now defined several Nb‐Ta and TREO anomalies.

Contact

Alistair Stephens Managing Director [email protected] 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.globemetalsandmmining.com.au | Email: [email protected] | ABN 33 114 400 609 | ASX:GBE

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Summary

The Mac h inga Proje c t, located approximat e ly 210 kil o metres southeast of L i longwe (Fi g ure 1), is considered prospecti v e for Nb, Ta and rare e arth elements (REEs). W ithin the p roject area Globe has identified several are a s of potenti a l Nb‐Ta an d TREO mineralisation.

In the M a rch Quarte r ly Report, G lobe advised that it ha d received the assays o f 365 soil samples and that the r esults were sufficiently encouragin g to warran t further sa m pling to b e tter define the Nb‐Ta and TREO anomalism . Consequently further soil and rock chip sampling was com p leted duri n g the June Quarter and the assa y results of t h is work are now availa b le.

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Figure 1: Map showing location of Machinga Project in Malawi.

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The following updates shareholders on the status of the exploration activities at Machinga.

A geochemical sampling programme comprising 224 soil and 79 rock chip samples was completed with assays returned in July. The results are considered to be encouraging, and contouring of the soil assay results reveals the show the extent of the anomalism for the respective commodities (refer and Figures 2 & 3 below).

  • a) One Nb‐Ta near‐continuous anomaly (Anomaly A) covering 3.8 kilometres of strike at a 1000ppm Nb2O5 cut‐off contour level.

  • b) A further Nb‐Ta anomaly (Anomaly B) at the 1000ppm Nb2O5 cut‐off contour covering approximately 1.5 kilometres of strike, but remains open‐ended, to the west of the main anomaly described above.

  • c) Coincident with Anomaly A is a TREO anomaly (Anomaly C) covering 3.2 kilometres of strike at a 2000ppm TREO cut‐off contour level.

  • d) Partially coincident with Anomaly B, also at the 2000ppm TREO contour but extending a further 1.1 kilometres north is Anomaly D.

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Figure2: Map showing extent of Nb2O5 soil anomalism at the Machinga Project. NB: The rock chips are colour coded at the same levels as the soil assay contours

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Figure3: Map showing extent of TREO soil anomalism at the Machinga Project. NB: The rock chips are colour coded at the same levels as the soil assay contours

Based on geological m apping an d preliminar y geochemi c al analysis i t would ap p ear that th e source of the pote n tial Nb‐Ta m ineralisati o n at Machi n ga is the m ineral pyro c hlore [(Na C a)2Nb(Ta,U) 2 O6(OH,F)], which is t h e principal Nb‐Ta mineral at Globe s Kanyika Niobium Proj e ct. The Nb‐ i n‐soil assay values are of similar tenor to th o se obtaine d previousl y from soil s a mpling co m pleted ove r the Kanyi k a Niobium Project resource.

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To determine the potential source of the TREO (including yttrium) anomalism requires further geochemical analyses.

The Machinga Licence (EPL0230/07R) is currently being reviewed under the Ministry of Mines (MoM) renewal process. Although the licence has passed its renewal date Globe has met all its statutory commitments including the relinquishment of 50% of the EPL area as required under Malawi law and indications from the MoM are that it will be renewed imminently. Globe has requested written confirmation from the MoM and at this stage is confident that the EPL will be renewed.

ENDS

Competent Person: The information in this presentation that relates to Globe Metals & Mining (ASX:GBE) is based on information compiled, reviewed or prepared by Mr Fergus Jockel, Exploration Manager for Globe Metals & Mining, who is a Member of the Australasian Institute of Mining & Metallurgy and of the Australian Institute of Geoscientists. Mr Jockel has sufficient experience, which is relevant to the style of mineralisation and type of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr Jockel consents to the inclusion in this presentation of the matters based on this information, in the form and context in which they appear.

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JORC TABLE 1

Section 1 Sampling Techniques and Data

Criteria Explanation Commentary
Sampling • Nature and quality of sampling (e.g., Rock chip samples were collected by
techniques cut channels, random chips, or specific Globe Metals and Mining Ltd where
specialised industry standard suitable outcrop was identified.
measurement tools appropriate to the Soil samples were collected along
minerals under investigation, such as predetermined samples lines.
down hole gamma sondes, or handheld
The rock chips and soil samples
XRF instruments, etc.). These examples collected were approximately 2kg
should not be taken as limiting the each. Bagging and numbering were
broad meaning of sampling. done in the field to ensure
• Include reference to measures taken to representivity of the sampling
ensure sample representivity and the process.
appropriate calibration of any All samples collected at Machinga
measurement tools or systems used. were submitted at the ISO 17025
• Aspects of the determination of accredited Genalysis Laboratory
mineralisation that are Material to the Services (Intertek) in South Africa for
Public Report. In cases where ‘industry sample preparation. The sample
standard’ work has been done this pulps were then shipped to Perth,
would be relatively simple (e.g., Western Australia for chemical
‘reverse circulation drilling was used to analysis applying the ICP‐MS
obtain 1 m samples from which 3 kg technique and additional multi‐
was pulverised to produce a 30 g element work was done applying the
charge for fire assay’). In other cases ARU10/MS technique.
more explanation may be required,
such as where there is coarse gold that
has inherent sampling problems.
Unusual commodities or mineralisation
types (e.g., submarine nodules) may
warrant disclosure of detailed
information.
Drilling • Drill type (e.g., core, reverse N/A
techniques circulation, open‐hole hammer, rotary
air blast, auger, Bangka, sonic, etc.)
and details (e.g., core diameter, triple
or standard tube, depth of diamond
tails, face‐sampling bit or other type,
whether core is oriented and if so, by
_what method, etc.). _
Drill sample • Method of recording and assessing N/A
recovery core and chip sample recoveries and
results assessed.
• Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
• Whether a relationship exists between
sample recovery and grade and
whether sample bias may have

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occurred due to preferential loss/gain
of fine/coarse material.
Logging • Whether core and chip samples have All samples were geologically logged
been geologically and geotechnically following Globe Metals and Mining
logged to a level of detail to support procedures
appropriate Mineral Resource
estimation, mining studies and
metallurgical studies.
• Whether logging is qualitative or
quantitative in nature. Core (or
costean, channel, etc.) photography.
• The total length and percentage of the
relevant intersections logged.
Sub‐sampling • If core, whether cut or sawn and Sub‐sampling and sample preparation
techniques and whether quarter, half or all core taken. protocols were in accordance with
sample • If non‐core, whether riffled, tube acceptable exploration practices.
preparation sampled, rotary split, etc and whether
sampled wet or dry.
• For all sample types, the nature,
quality and appropriateness of the
sample preparation technique.
• Quality control procedures adopted for
all sub‐sampling stages to maximise
representivity of samples.
• Measures taken to ensure that the
sampling is representative of the in situ
material collected, including for
instance results for field
duplicate/second‐half sampling.
• Whether sample sizes are appropriate
to the grain size of the material being
sampled.
Quality of • The nature, quality and All rock chips and soil samples were
assay data and appropriateness of the assaying and assayed at Genalysis Laboratory
laboratory laboratory procedures used and Perth.
tests whether the technique is considered Internal Laboratory Standards and
partial or total. Repeats were performed on each
• For geophysical tools, spectrometers, batch.
handheld XRF instruments, etc., the Quality control procedures adapted
parameters used in determining the by Genalysis are considered to be
analysis including instrument make adequate and to industry/ JORC
and model, reading times, calibrations standards.
factors applied and their derivation,
etc.
• Nature of quality control procedures
adopted (e.g., standards, blanks,
duplicates, external laboratory checks)
and whether acceptable levels of
accuracy (i.e., lack of bias) and
precision have been established.
Verification of • The verification of significant Globe Metal and Mining geologist
sampling and intersections by either independent or verified all samples prior to dispatch
assaying alternative company personnel. to the laboratory.
• The use of twinned holes. Documentation of samples is initially

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• Documentation of primary data, data collected in notebooks and location
entry procedures, data verification, stored in hand held GPS units before
data storage (physical and electronic) being transferred to electronic
protocols. format.
• Discuss any adjustment to assay data.
Location of • Accuracy and quality of surveys used to Hand held GPS units (GARMIN
data points locate drill holes (collar and down‐hole GPSMAP 78s) are used to define field
surveys), trenches, mine workings and location of all field samples. These
other locations used in Mineral locations are considered accurate to
Resource estimation. 5m. The GPS has sufficient
• Specification of the grid system used. topographic control warranted for
• Quality and adequacy of topographic geochemical sampling. GPS data is
control. downloaded via MAP SOURCE into MS
Excel.
Data spacing • Data spacing for reporting of Sample locations were selected after
and Exploration Results. an initial ground radiometric survey in
distribution • Whether the data spacing and 2013. Once the survey was complete
distribution is sufficient to establish the an soil survey program was conducted
degree of geological and grade and following from those results
continuity appropriate for the Mineral additional samples were collected
Resource and Ore Reserve estimation during the recent program.
procedure(s) and classifications
applied.
• Whether sample compositing has been
applied.
Orientation of • Whether the orientation of sampling Structure unknown from rock chip
data in achieves unbiased sampling of possible and soil sampling.
relation to structures and the extent to which this
geological is known, considering the deposit type.
structure • If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to
have introduced a sampling bias, this
should be assessed and reported if
material.
Sample • The measures taken to ensure sample Chain of custody for Globe Metal and
security security. Mining soil, rock chip and drill core
samples was managed by the geology
manager. Samples were collected
from the Lilongwe office in Malawi by
MANICA (a freight company based in
Malawi) transport for delivery to
Genalysis Laboratory in Johannesburg
South Africa.
Audits or • The results of any audits or reviews of No audit of data has been completed
reviews sampling techniques and data. to date

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria Explanation Commentary Commentary
Mineral • Type, reference name/number, location Exploration is conducted within
tenement and and ownership including agreements or EPL0230/07 which is 100% held by
land tenure material issues with third parties such as Globe Metals and Mining Ltd. The
status joint ventures, partnerships, overriding EPL covers an area of 885 km2.
royalties, native title interests, historical The tenement is currently being
sites, wilderness or national park and reviewed under the Malawi Ministry
environmental settings. of Mines renewal process. Globe is
• The security of the tenure held at the time waiting for confirmation of the
of reporting along with any known renewal and part relinquishment of
impediments to obtaining a licence to the licence.
operate in the area.
Exploration
done by other
parties
• Acknowledgment and appraisal of
exploration by other parties.
The American Smelting and Refining
Company (ASARCo) and the Atomic
Energy Division of the Geological
Survey of Britain carried out
preliminary geological work in 1955.
Exploration activities included car‐
mounted scintillometer survey, an
airborne scintillometer survey,
geological mapping, trenching and
diamond drilling. Radiometric
anomalies were found within the
basement gneisses associated with
outcrops of fine‐grained epidotised
rock, its pegmatitic equivalents, and
an alkaline granite ring‐dyke
peripheral to the Malosa pluton.
None of the generated data was
made available to Globe Metals.
Detailed geological mapping over the
Malosa‐Zomba Mountains were
completed by Bloomfield et al in
1965.
During 1986, an airborne magnetic
and radiometric survey was carried
out by Hunting Geology and
Geophysics Limited and interpreted
by Paterson, Grant & Watson Limited
(‘PGW’) in 1987 for a United Nations
sponsored Development Programme.
This survey located a number of
Uranium channel radiometric
anomalies within the Zomba region,
including one with a peak value of
about ten times background and a

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length of 7 km that is coincident with
the eastern margin of the Malosa
Pluton.
In November 2009 Resource Star
Limited completed an orientation soil
sampling program over Machinga
Main Anomaly, during which a total
of 136 samples were collected.
Geology • Deposit type, geological setting and style The licence area is dominated by
of mineralisation. rocks of the Mesozoic Chilwa Alkaline
Province (granite, syenite and
nepheline‐syenite plutons and have
associated volcanic vents
characterised by carbonatite and
agglomerate). The Malosa Pluton
consists of a heterogeneous mixture
of syenitic and granitic rocks.
The REE‐Nb‐Ta mineralisation at
Machinga is associated with the
eastern margin of the Malosa Pluton
of Chilwa Alkaline Province age.
Uranium and thorium anomalies are
also associated with the REE‐Nb‐Ta
mineralisation.
Drill hole
Information
• A summary of all information material to
the understanding of the exploration
N/A
results including a tabulation of the
following information for all Material drill
holes:
• easting and northing of the drill hole
collar
• elevation or RL (Reduced Level –
elevation above sea level in metres) of
the drill hole collar
• dip and azimuth of the hole
• down hole length and interception
depth
• hole length.
• If the exclusion of this information is
justified on the basis that the information
is not Material and this exclusion does
not detract from the understanding of the
report, the Competent Person should
clearly explain why this is the case.
Data
aggregation
• In reporting Exploration Results,
weighting averaging techniques,
N/A
methods maximum and/or minimum grade
truncations (e.g., cutting of high grades)
and cut‐off grades are usually Material
and should be stated.
• Where aggregate intercepts incorporate
short lengths of high grade results and

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longer lengths of low grade results, the
procedure used for such aggregation
should be stated and some typical
examples of such aggregations should be
shown in detail.
• The assumptions used for any reporting
of metal equivalent values should be
clearly stated.
Relationship • These relationships are particularly
between important in the reporting of Exploration
mineralisation Results.
widths and • If the geometry of the mineralisation with
intercept respect to the drill hole angle is known, its
lengths nature should be reported.
• If it is not known and only the down hole
lengths are reported, there should be a
clear statement to this effect (e.g., ‘down
_hole length, true width not known’). _
Diagrams • Appropriate maps and sections (with
scales) and tabulations of intercepts
should be included for any significant
Appropriate maps are included in the
body of the report
discovery being reported These should
include, but not be limited to a plan view
of drill hole collar locations and
appropriate sectional views.
Balanced
reporting
• Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low and
Reporting of results in this report is
considered balanced.
high grades and/or widths should be All results have been reported
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive
• Other exploration data, if meaningful and
material, should be reported including
Refer to body of text.
exploration data (but not limited to): geological
observations; geophysical survey results;
geochemical survey results; bulk samples
– size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further work • The nature and scale of planned further
work (e.g., tests for lateral extensions or
depth extensions or large‐scale step‐out
drilling).
• Diagrams clearly highlighting the areas of
Current geological assessments
include follow‐up soil and rock chip
sampling testing known Machinga
Main Zone (Anomalies A – D).
possible extensions, including the main
geological interpretations and future
drilling areas, provided this information is
not commercially sensitive.

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Contact:

Alistair Stephens Shasha Lu Managing D irector Deputy CEO and Ex Globe Met a ls & Mining L td Globe Metals & Mi Tel: +61 (0 ) 8 9327 070 0 Tel: + 6

Deputy 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 gl o bal investm e nt opportu n ities in the minerals i n dustry.

Globe’s Kanyika Niobiu m Project is located in M a lawi, which will produce niobium and tantalum products; key additives i n steels and electronics.

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

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