Mr. Gary Lewis reports

AEF ASSEMBLES DISTRICT-SCALE FLUORSPAR POSITION AT FLUORITE RIDGE IN NEW MEXICO, EXPANDS FOOTPRINT

AE Fuels Corp. has provided an update on its 100-per-cent-owned Fluorite Ridge project in New Mexico, United States, including expansion of the company's land position through additional staking and advancement of exploration activities.

Fluorite Ridge gives AE Fuels exposure to one of the most strategically important supply chains in advanced manufacturing. Fluorspar is the primary feedstock for hydrofluoric acid, a critical material used in semiconductor fabrication, battery materials, nuclear technologies and defence applications. Why is this important? With the United States heavily reliant on imported fluorspar, AE Fuels believes Fluorite Ridge represents a compelling opportunity to help strengthen domestic supply chains for critical fluorine-based materials.

Gary Lewis, chief executive officer of AE Fuels, commented: "Fluorite Ridge is a rare opportunity to consolidate a historic fluorspar district at a time when domestic supply chains are becoming increasingly important. We believe the project has the potential to become a strategically important source of U.S.-aligned fluorspar feedstock supporting hydrofluoric acid and advanced manufacturing supply chains."

Fluorite Ridge: historic fluorspar producer with district-scale potential

Fluorite Ridge consists of 81 mining lode claims covering approximately 1,673 acres on lands administered by the U.S. Bureau of Land Management. The project contains multiple prospects and at least eight abandoned mines over a strike length of roughly seven kilometres.

The Fluorite Ridge district has a well-documented but underdeveloped history of fluorspar production, commencing in the early 20th century and continuing intermittently through to the 1950s. Peak activity occurred from the 1930s to the Second World War in response to strong demand from U.S. steel and chemical industries, with the majority of output sourced from the Sadler and Greenleaf mines.

Mining activity declined in the mid-20th century due to falling prices rather than resource depletion, and no modern, systematic exploration has been undertaken across much of the district. This historical production profile highlights both the established presence of high-grade fluorite mineralization and the potential for significant untested extensions at depth and along strike.

Geologically, the project is centred on fluorite-bearing jasperoid, silicified fossiliferous limestone, quartz breccia and hematite-rich breccia developed within and adjacent to limestone, sandstone, conglomerate, shale and intrusive rocks.

Soil sampling program

Covering the main Fluorite Ridge, 350 soil samples were collected across 11 soil lines spaced 400 metres apart. All soil samples were submitted to ALS Geochemistry in Tucson, Ariz., for fluorine analysis. Results from the soil program were later used to rank follow-up targets. The follow-up field program selected target areas where clusters of three or more soil samples returned more than 1,000 parts per million fluorine.

Mapping and channel sampling

A detailed outcrop mapping and channel sampling program was carried out at Fluorite Ridge. Fifteen target sites were identified from the soil results.

Channel lines were oriented to approximately 45 degrees across prospective outcrop and were selected on the basis of jasperoid development, fluorite-bearing veins, accessibility, safety and outcrop continuity. Mapping recorded lithology, alteration and structural observations in detail around each sampled line.

The work showed that fluorite is enriched within jasperoid and silicified features and also occurs in adjacent rocks. The most significant visible fluorite was reported from silicified fossiliferous limestone while high fluorine values were also recorded in places where fluorite was not obvious in outcrop, suggesting that fine-grained or disseminated fluorite may also be present within jasperoid systems.

Field review and implications

A site visit was undertaken for sample collection, for mineralogical and metallurgical characterization, and to determine the next exploration steps. The review confirmed that, fluorite-bearing breccias were identified as the best immediate exploration target. The review highlighted sites 6, 9 and 9A as the preferred areas for preliminary metallurgical work using coarse assay rejects from prior channel sampling.

Next steps

The current data support a focused next phase aimed at advancing Fluorite Ridge toward drill-ready targets and preliminary process validation. Based on the completed work, the company expects the next steps at Fluorite Ridge to include detailed geological mapping across the broader property, supported by high-resolution drone and/or satellite photogrammetry, hyperspectral imagery and topographic control. Additional surface and channel sampling is warranted at incomplete or revised targets and other prospective ridge positions identified by the soil program. AE Fuels has commissioned Ethos Geological, based in Bozeman, Mont., to undertake this work.

Preliminary metallurgical testing on assay rejects is expected to provide the first direct indication of concentrate potential and upgrade options, and selected pulps from mineralized breccias may also be assayed for tungsten.

AE Fuels has prepared a preliminary characterization scope of work for Fluorite Ridge based on approximately 20 kilograms of selected rock chip and channel sample material. The aim is to understand the nature of the fluorite mineralization and to define viable near-term product pathways before larger-scale bulk sampling or drilling. The program is intended to include major- and minor-element head assays; estimates of CaF2 and carbonate content; XRD, petrology and mineral liberation work; staged crushing and size-by-size assays; sink float density screening; small-scale flotation testing; and a small-scale gravity testwork.

Environmental and social impact program

As part of its planned advancement activities at Fluorite Ridge, AE Fuels is undertaking a comprehensive environmental and social impact assessment program to support responsible project development. The company expects this work to include baseline environmental studies and stakeholder engagement activities encompassing water resources, biological and ecological considerations, cultural heritage and tribal consultation, land use, and broader community and social impact considerations. AE Fuels has engaged permitting and environmental, social and governance specialists to assist in developing a strategic permitting and stakeholder engagement road map designed to support transparent, collaborative and environmentally responsible project advancement in accordance with applicable federal and state regulatory frameworks.

Advance notice policy

The company announces that the board of directors of the company approved an advance notice policy on April 28, 2026, with effect as of such date.

The purpose of the advance notice policy is to provide shareholders, directors and management of the company with a clear framework for nominating directors. The advance notice policy includes, among other things, a provision that requires advance notice be given to the company in circumstances where nominations of persons for election to the board are made by shareholders of the company, other than pursuant to a valid requisition of a meeting or a valid shareholder proposal made in accordance with the provisions of the Business Corporations Act (British Columbia).

The advance notice policy sets a deadline by which holders of record of common shares of the company must submit director nominations to the company prior to any annual or special meeting of shareholders, sets forth the information that a shareholder must include in the notice to the company, and establishes the form in which the shareholder must submit the notice for that notice to be in proper written form.

In the case of an annual meeting of shareholders, notice to the company must be made not fewer than 35 days prior to the date of the annual meeting. However, in the event that the annual general meeting is to be held on a date that is fewer than 50 days after the date on which the first public announcement (as defined in the advance notice policy) of the date of the annual meeting was made, notice by the shareholder may be made not later than the close of business on the 10th day following the notice date.

In the case of a special meeting of shareholders (which is not also an annual meeting) called for the purpose of electing directors (whether or not called for other purposes), notice to the company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.

Notwithstanding the foregoing, the board may, in its sole discretion, waive any requirement set out in the advance notice policy.

The company intends to seek shareholder approval and ratification of the advance notice policy at the company's next annual general meeting of shareholders. If the company's shareholders do not approve and ratify the advance notice policy by ordinary resolution at the next annual general meeting, the advance notice policy shall cease to be of any force and effect following the termination of such meeting.

The full text of the advance notice policy is available under the company's profile on SEDAR+.

Convertible loan disclosure

The company further announces that it plans to enter into convertible loan agreements with Mr. Lewis and two arm's-length lenders, pursuant to which the company may borrow an aggregate principal amount of up to $300,000 under three convertible loans advanced by the lenders, subject to the satisfaction of certain conditions precedent, including the approval of the TSX Venture Exchange. The company intends to use the proceeds of the loans to advance its Fluorite Ridge project and for general working capital purposes. Each loan bears interest at a rate of 5 per cent per annum, compounded quarterly, with interest payable in cash on the maturity date, being 12 months from the date of issuance. Subject to the approval of the exchange, the outstanding principal amount of a loan may be converted, at the option of the applicable lender at any time prior to maturity, into common shares of the company at a conversion price of 17 cents per common share. Any common shares issued upon conversion of a loan will be subject to a hold period of four months and one day from the date of issuance, expiring on Sept. 14, 2026, in accordance with applicable securities laws and exchange policies. The company does not anticipate that entering into the convertible loan agreements will result in a material change in its business, operations or capital that would reasonably be expected to have a significant effect on the market price or value of its securities.

Related-party transaction disclosure

Mr. Lewis, one of the lenders, is a related party of the company by virtue of his position as chief executive officer and a director of the company, and, accordingly, the loan advanced by Mr. Lewis constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 in respect of Mr. Lewis's loan pursuant to sections 5.5(b) and 5.7(1)(a) of MI 61-101, respectively, as no securities of the company are listed on a specified market for the purposes of MI 61-101 and the fair market value of Mr. Lewis's loan does not exceed 25 per cent of the company's market capitalization as determined in accordance with MI 61-101. The board of directors of the company approved Mr. Lewis's loan, with Mr. Lewis declaring his interest in the transaction and abstaining from voting on the approval. No materially contrary view or abstention was expressed or made by any director of the company in relation thereto.

Qualified person

John Levings, BSc, FAusIMM, technical director, AE Fuels, is the qualified person, as defined by National Instrument 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 a United States-aligned, critical mineral company focused on battery-grade manganese and fluorspar-hydrofluoric-acid supply chains. The company's strategy connects allied-country manganese supply (Pilbara, Western Australia) and domestic U.S. fluorspar supply (New Mexico, United States) with U.S. mid-stream processing and downstream supply chains. Manganese and fluorspar are designated critical minerals in the U.S., Australia and European Union, and essential to multiple high-growth industries, including battery materials, semiconductor fabrication and advanced electronics, nuclear fuel processing, and clean energy technologies. AE Fuels is advancing development activities aimed at delivering reliable, allied-sourced supply of these materials to reduce foreign dependency and strengthen U.S. industrial base resilience across these key industries.

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