Globex Shareholder Update – May 28, 2019

May 28, 2019

On March 20, 2019, Globex informed shareholders that Imperial Mining Group Ltd. (IPG-TSXV) mobilized a drill to its Crater Lake Scandium property located east of Schefferville near the Labrador border. The target was Scandium mineralization in a magnetic pyroxenite horizon related to an oval, six-kilometre diameter alkali intrusive complex. Globex previously acquired claims covering half the oval pyroxenite horizon in anticipation of potentially positive drill results from Imperial (see Globex March 20, 2019 news release at: https://www.globexmining.com/news.php).

On May 22, 2019, Imperial announced assay results from the first two holes of their five hole drill program on what is termed the TG Zone. Drilling revealed wide widths of Scandium and associated rare earths as follows:

Hole #	From (m)	To (m)	Interval (m)	Sc₂O₃ (g/t)	Sc (g/t)	TREO (%)
CL19031	115.80	145.00	29.2	325	212	0.344
Including	115.80	123.00	7.2	370	241	0.399
Including	134.15	145.00	10.9	423	276	0.408
CL19031	193.35	204.00	10.7	327	213	0.366
CL19032	151.35	164.00	12.7	368	240	0.551
CL19032	171.85	220.00	48.2	385	251	0.440
Including	171.85	180.70	8.8	528	344	0.622
Including	188.25	200.70	12.5	474	309	0.552

Table 1 – Crater Lake Drilling Partial Assay Results (Source: Imperial Mining Group Ltd, May 22, 2019 Press Release)

Sc = Scandium, Sc₂O₃䧆ꝶ⮦ Oxide, TREO=Total rare earth oxides plus Yttrium

Imperial reports that, it appears that the Scandium grade increases with depth. In addition to the five drill holes, Imperial collected two 100 kg bulk samples from split core to be sent for additional metallurgical test work. Initial test work in 2018, by SGS Lakefield, indicated that a combination of low-cost gravity and magnetic or electromagnetic separation methods can yield a high grade Scandium mineral concentrate.

Globex is very pleased by the progress Imperial is making on their half of the complex and feels that the positive drill and metallurgical results increase the intrinsic value of our land position particularly as there is no Scandium production in North America. As is Globex’s business model, we will now seek an option partner to explore our claims.

As reported in the Imperial press release of May 22, 2019:

“Scandium Markets

The broader adoption of scandium in the aluminum alloys sector has been constrained by the limited availability of scandium in western commercial markets from the primary supply sources in China and Russia. The lack of reliable long-term supply sources to provide material for additional applications has also limited scandium market growth. This has resulted in much higher prices for Sc compared to competing alloy materials, such as titanium, and has limited its broader use. The current price of the metal oxide published by USGS indicates that it trades in a range of approximately US$2,000-4,000/kg for 99.99% purity.

Scandium acts as a grain-refiner and hardener of aluminum alloys. Aluminum-scandium alloys combine high strength, ductility, weld-ability, improved corrosion resistance and a lower density. The combination of all these properties makes aluminum-scandium alloys well-suited for the aerospace, automotive and defense industries. Scandium-modified aluminium alloys are highly valued as an important light weighting material as it is one-third the weight of steel and is 60 % of the weight of titanium alloys.

As new technologies motivate manufacturers to identify new sources for scandium, the element could be widely adopted by major industries in the years to come. Likely early adopters of scandium-modified aluminum alloys will be the automotive manufacturers seeking to lighten electric vehicle (EV) and combustion-engine cars and trucks to extend battery range and improve fuel efficiency, respectively. Recent data from Nemak, S.A.B. de C.V. (2019), one of the world’s largest automotive OEM, shows that high strength aluminium components is an $11-billion dollar target market by 2025 for them. Estimates show that as much as 0.17 kg (170 gm/vehicle) of scandium could be required for high-strength and high-temperature applications in new EVs. If 30 million EVs are produced annually by 2030 (Bloomberg, 2018), this could equate to annual demand of 5,100 tonnes of Sc₂O₃ for this platform alone.”

Note: $2,000 to $4,000/kg = $2.00 to $4.00 per gram.

385 grams per tonne Scandium Oxide = $770.00 to $1,540.00 per tonne of rock in hole CL19032.

Crater Lake Magnetic Tilt Map

Lac Cratère

Globex Mining Enterprises Inc.
86, 14e Rue, Rouyn-Noranda QC J9X 2J1 CANADA
Tel.: 819.797.5242, Fax: 819.797.1470
www.globexmining.com
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