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Smallcaps Investment Research Globex Mining Ent. (GMX) Company Report – December 02, 2017 Globex Mining Enterprises Inc. is a North American focused exploration and development project generator. The Company has an exceptionally well-diversified portfolio of assets, with exposure to a wide range of commodities. As a result of the restart of Nyrstar’s Mid Tennessee mine in May 2017, Globex anticipates receiving royalties of at least between $150,000 and $175,000 per month. This is just one of Globex’ recurring revenue sources. The past few weeks, the Company received well over $1 million in cash and shares. These funds will be used to acquire other attractive properties and to cover exploration and property maintenance costs. The Francoeur/Arntfield property is a prime example of this strategy. Since Globex acquired it 1.5 years ago, it has been significantly advanced. It now demonstrates the potential for a large tonnage low grade near surface gold deposit in additional to the more classic Abitibi higher grade underground minable deposit. We feel that Francoeur/Arntfield alone justifies Globex current market valuation. Another recent acquisition is the Bräunsdorf silver property in Saxony, Germany. Thanks to the initial information that Globex obtained, it’s clear that it could become a promising endeavor. Based on these calculations, we reiterate our buy recommendation for Globex Mining Enterprises with a price target of $1.19, which is 176% above today’s stock price. Unlike investments in traditional junior resource companies where most investors speculate on the outcome of one or two projects, Globex has a much lower downside as it puts its eggs in multiple baskets, allowing them to significantly reduce the inherent risk of the mineral exploration and development business. Therefore, an investment in Globex is ideal for investors seeking exposure to the commodities markets and the resource sector without having to bet on the outcome of a single or Market Data handful of projects. Price $0.43 Sector Metals & Mining Globex maintains a tight capital structure with 52-Week Price Range $0.38 - $0.63 50.2 million shares outstanding, and no debt. Shares Issued (m) 50.2 Since its listing in 1987, the Company has Market Cap (m) $21.6 never executed a reverse stock split. Listings GMX (TSX), GLBXF (US), G1MN (Fra) Website www.globexmining.com Globex Mining Enterprises – Page 1 – Company Report Q3 2017 Smallcaps Investment Research Revenues for the third quarter of 2017 were THE COMPANY $352,585 as compared to $452,305 in 2016. While revenues for the nine-month period Globex Mining Enterprises Inc. is a North ended September 30, 2017 were $1,501,126 American focused exploration and as compared to $982,747 in 2016. A strong development project generator. A project increase of $518,379, or 53% (Also read generator’s business model is to acquire Financials). mineral properties, and to advance them, either to production or to ready them for optioning, joint venturing, or outright sale to Globex’ current mineral portfolio consists of approximately 161 early to mid-stage a third party resource company. exploration, development and royalty The properties in a project generator’s properties which contain Base Metals (copper, nickel, zinc, lead), Precious Metals portfolio are typically optioned out to third parties - termed as Option Partners - in (gold, silver, platinum, palladium), Specialty exchange for: Metals and Minerals (manganese, vanadium, titanium oxide, iron, molybdenum, A series of annual cash and/or share payments; lithium, rare earths and associated elements) An annual exploration work and Industrial Minerals (mica, silica, commitment; and feldspar, pyrophyllite, kaolin, graphite as well A Gross Metal Royalty (GMR). as talc and magnesite). Upon the satisfaction of the above option A significant majority of Globex’ properties are terms, the property interest is transferred to located in Eastern Canada, as the Company’s the Option Partner. However, the option geologists are true experts in the region. In contract will terminate if annual payments addition, the Company appreciates the strong and/or work commitments are not met. In mining laws in Canada and the low political that case, the property returns back to risk. Globex. Outright property sales may include cash and/or share payments and a form of royalty interest payable when projects achieve commercial production or another negotiated milestone. Unlike investments in traditional junior resource companies where most investors speculate on the outcome of one or two projects, Globex has a much lower downside as it puts its eggs in multiple baskets, allowing them to significantly reduce the The Globex property map clearly shows the strong inherent risk of the mineral exploration and focus on Eastern Canada. development business. A couple of months ago, however, the Therefore, an investment in Globex is ideal for Company acquired a major historic silver investors seeking exposure to the mining district in Saxony, Germany. The commodities markets and the resource sector property allows Globex to tap into a whole without having to bet on the outcome of a new market, while staying consistent with its single or handful of projects. strategy regarding operating projects in countries with a stable legislature (Also read Moreover, Globex’ model offers the potential Recent Events). to generate consistent and recurring revenues from royalties on the projects that eventually Globex rarely acquires grass roots or very advance to production. early stage projects. Instead, the Company is Globex Mining Enterprises – Page 2 – Company Report Q3 2017 Smallcaps Investment Research focused on acquiring properties which meet that royalty income dropped significantly, as one or more of the following criteria: companies closed operating mines. Historical or NI 43-101 resource estimates; Now that commodities markets are turning Have reported past production; around, Globex’ revenue is significantly Have established drill targets or drill increasing, as Option Partners are again intersections of economic merit; advancing the Company’s assets. Are located on major geological structures. To clarify the Company’s business model further, both an example of an option agreement as well as a royalty stream are described in more detail below. Late June 2016, Globex entered into an Option Agreement with Manganese X Energy Corp. (TSXV: MN) related to the Houlton Woodstock Manganese Property located in the Province of New Brunswick, Canada. To earn a 100% interest in the property, subject to a 3% Gross Metal Royalty, The Bräunsdorf Property in Saxony, Germany. Manganese X is required to: Make cash payments to Globex of The Company maintains a tight capital $200,000 (fully paid); structure with close to 50.2 million shares Issue an aggregate of 4,000,000 outstanding, and no debt. Since its listing in common shares of Manganese X 1987, it has never executed a reverse stock (2,000,000 have been issued and split. 2,000,000 shares are to be issued on April 22, 2018); Incur exploration expenditures of Globex trades on the senior Toronto Stock $1,000,000 on the property; and Exchange under the symbol GMX, in the Deliver a Preliminary Economic United States on the OTCQX market with Assessment (PEA) to Globex on or symbol GLBXF and in Europe on the Frankfurt, before the fourth anniversary of the Berlin, Stuttgart, Munich, Tradegate and Lang Option. & Schwarz stock exchanges with symbol G1MN. The Houlton Woodstock Manganese Property includes the historical Moody Hill, Sharp Farm, The Company’s head office is located in Iron Ore Hill and Maple Hill manganese‐iron Toronto, Ontario, and its principal business zones. In July 1953, K.O.J. Sidwell, in a report office is located in Rouyn-Noranda, Quebec. titled “Preliminary Report on the National In addition to the senior management team, Management Limited Property at Woodstock, Globex has 13 employees, including six NB” reported, based upon limited diamond geologists, and three technicians. drilling and a gravity survey manganese iron, historical resources of 25 million tons at Iron Revenue Model Ore Hill, 10 million tons at Moody Hill and 8 million tons at Sharp Farm. In the past few years, Globex’ revenue has been under pressure, varying between a low Manganese is essential in the production of of $750,000 (2013) and a high of $1,356,000 stainless steel and as an alloying agent with (2016). The reason for these low revenues aluminium. However, it has many other uses was the crisis in the resource sector. Very few including in new alkaline batteries and rapidly companies were able to raise money to option developing lithium ion manganese batteries or develop projects. Another consequence was where MnO2 acts as the primary cathode Globex Mining Enterprises – Page 3 – Company Report Q3 2017 Smallcaps Investment Research material. This developing technology is production is still ramping up to full promising as the magnesium‐oxide production, and because zinc prices have components are abundant, non‐toxic and been steadily rising, royalty payments are provide better thermal stability. Adding to the expected to increase. Production is currently potential of this project is the fact that there at approximately 60% of capacity. is no manganese production in North America, so savings in transport cost and the question At full capacity, Globex anticipates of security of supply verses foreign sources potentially receiving royalty payments enters the picture. from Nyrstar of about $2 million per year. This is a very attractive financing Nyrstar’s Mid Tennessee mine on the other method to advance Globex’ other hand, has been one of Globex’ best Royalty projects without any shareholder Agreements so far. dilution. Globex is entitled to a 1.4% royalty when LME zinc prices are at or over US$1.10 per lb, and a 1% royalty when the zinc price is between US$0.90 and US$1.09 per lb. The following table shows Globex’s royalties from this project to date.

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