Global Atomic Fuels Corporation

Global Atomic Fuels Corporation

September 23, 2010 16:28 ET

Global Atomic Fuels Announces Results of Economic Study on Dasa Open Pit Project, Niger

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) - Global Atomic Fuels Corporation ("Global" or "The Company") a private Ontario corporation, is pleased to announce the results of the metallurgical and economic studies on the Dasa open pit target located on Global's Adrar Emoles #3 concession in Niger.

Studies were carried out by a number of independent groups including:

  • Lyntek Inc. of Lakewood, Colorado

  • John Litz of Lakewood, Colorado

  • Hazen Research of Golden, Colorado

  • John Cook, P.Eng. of Belleville, Ontario

Highlights of the study include:

  • Dasa will be mined as a series of open pits with ore moving to a central vat leach plant to produce yellow cake.

  • Phase I, drilling has outlined an initial resource of approximately 23 million pounds in an inferred category (Non NI 43-101 compliant)

  • Metallurgical testing confirms low acid consumption of 30 lbs/ton with uranium recoveries of 98%

  • Head grades will average 1.5 – 2 lbs/ton or 650 - 850 ppm with a high grade starter pit producing initial plant feed.

  • Production plan anticipates an initial production of 1 million pounds/annum increasing to 2 million pounds/annum by year 3.

  • Initial mine life of 10 years with significant exploration upside to add resources

  • NPV @ 10% discount based on current resource, is US $210,835,000 @ $70/lb U3O8

  • 2 year construction period

  • Annual operating cash flow at full capacity of US $102,588,000

Global's Dasa Development Plan:

  • Engage an independent consulting group to complete a final feasibility study

  • Commence definition and expansion drilling program in October

  • Commence construction within 18 months

  • Establish first producing asset in Niger within 30 months

  • Continue development and further exploration of Global's other deposits on its other Niger concessions

Global Financing & IPO Plans:

  • Global will complete a private placement financing to fund completion of the feasibility study on the Dasa project

  • IPO will be initiated as soon as possible to raise sufficient equity to fund mine construction

About Global Atomic Fuels Corporation

Global Atomic Fuels is a private Ontario corporation founded in January, 2005 by executives with extensive experience in the mining and marketing of uranium. The Company has exploration agreements covering six uranium concessions in the Republic of Niger, covering an area of approximately 3,000 km2, as well as owning a database consisting of numerous uranium exploration targets around the world collected over a 30 year period by a major Canadian uranium producer.

The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws

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