Mr. Gary Lewis reports

AEF EXPANDS HIGH-GRADE MANGANESE FOOTPRINT AT PEARANA ACROSS 3.5KM STRIKE, ADVANCING BATTERY MATERIALS STRATEGY

AE Fuels Corp. has provided an exploration update from the Pearana area at its South Woodie Woodie manganese project in the Pilbara District of Western Australia. Recent fieldwork identified high-grade manganese mineralization from 302 surface rock-chip samples, across multiple prospects, highlighting the district-scale discovery potential and establishing Pearana as a priority drill target. The company is now moving to the next phase of work, with a high-resolution gravity survey to commence over the most prospective areas.

Pearana lies approximately 30 kilometres north of the Contact resource deposit area and within the world-class Woodie Woodie manganese district. The prospect is hosted by Pinjian chert breccia, the principal host unit for manganese mineralization in the district, and surface results indicate that high-grade mineralization may extend beneath shallow cover along strike. The company considers Pearana and the Pothole-Sharks Fin trend to be priority drill targets pending completion of geophysical targeting and access preparations.

Gary Lewis, chief executive officer of AE Fuels, commented: "Pearana is shaping up as a significant manganese target. The surface results are strong, the strike is substantial, and, importantly, we are identifying multiple targets across a highly prospective district. We are now moving quickly to the next phase with a high-resolution gravity survey designed to identify shallow high-grade manganese bodies. Our objective here is clear: to find additional near-surface high-grade manganese that can supplement the existing resource base and support our strategy of producing high-purity manganese products for battery and advanced technology markets."

Pearana emerging as a major discovery

Surface sampling at Pearana confirmed high-grade manganese mineralization over a 3.5-kilometre strike, with multiple samples exceeding 30 per cent manganese and a peak sample returning 51.8 per cent manganese. Additional strong results were returned at nearby prospects, as shown in Table 1.

These results are consistent with the company's view that the Pearana area has the potential to host shallow, high-grade manganese mineralization additional to the existing Contact National Instrument 43-101 mineral resource of 11.3 million tonnes at 15 per cent manganese. They also reinforce the prospectivity of the wider South Woodie Woodie project area.

District-scale potential supports battery-grade manganese strategy

The South Woodie Woodie project is a fully integrated battery materials project designed to meet multiple and evolving specifications of both electric vehicle and energy storage system markets. To that end, the emerging high-grade, district-scale manganese system at Pearana has the potential to supplement the company's existing resource base and become a key upstream source supporting AE Fuels' downstream development ambitions.

The company is continuing to progress a staged development pathway from feed upgrading to downstream processing, with a target of delivering a prefeasibility study in 2027.

Gravity survey program

AE Fuels has commissioned a 3,249-station high-resolution gravity survey across Pearana and the Pothole-Sharks Fin corridor. The survey is being conducted at 40-metre station spacing, providing detailed subsurface targeting ahead of drilling.

Perth-based Resource Potentials will provide survey planning oversight, continuing monitoring, data quality assurance/quality control, preliminary imaging, final processing (including terrain corrections, 3-D unconstrained gravity inversion modelling, interpretation and targeting) and final technical review. AE Fuels expects the gravity data to help define dense manganese oxide bodies beneath shallow cover and sharpen drill target selection.

Qualified person

John Levings, BSc, FAusIMM, technical director, AE Fuels, is the qualified person, as defined by NI 43-101, responsible for the scientific and technical information in this news release. Mr. Levings has reviewed, verified and approved the scientific and technical information in this news release. Mr. Levings is not independent of the company for the purposes of NI 43-101.

About AE Fuels Corp.

AE Fuels is building a vertically integrated critical minerals business, with manganese and fluorspar projects positioned to supply battery, semiconductor and energy transition markets. AE Fuels has a multiasset portfolio strategically located in Tier 1 jurisdictions with manganese projects in the Pilbara region of Western Australia, including an inferred NI 43-101 mineral resource of 11.3 million tonnes grading 15 per cent manganese, and brownfields fluorspar projects in New Mexico in the United States. Both commodities are designated critical minerals in the United States, Australia and the European Union, reflecting their importance to battery supply chains, semiconductors, nuclear energy and advanced industrial applications. The company's strategy is to develop secure, Western-aligned supply chains that reduce dependence on high-risk or non-aligned jurisdictions, particularly for U.S. and allied customers. AE Fuels is positioning its manganese assets to support high-purity manganese sulphate monohydrate (HPMSM) production for lithium-ion battery cathodes while advancing its fluorspar projects to supply hydrofluoric acid and downstream fluorochemical markets critical to semiconductors, energy transition technologies and advanced manufacturing.

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