Mr. Galen McNamara reports

AERO ENERGY ANNOUNCES COMPLETION OF SUMMER DRILL PROGRAM AT SUN DOG PROJECT, NORTHWESTERN ATHABASCA BASIN

Aero Energy Ltd. has completed drilling activities at the company's Sun Dog uranium project, located near Uranium City in northwestern Saskatchewan. The program was designed to test the newly identified Wishbone target area for high-grade basement hosted uranium deposits, typical of the Athabasca basin.

Highlights:

• Anomalous radioactivity at Wishbone: A total of 1,593 metres were completed across eight drill holes, targeting shallow high-grade basement-hosted uranium mineralization at the Wishbone target area. Intervals of anomalous radioactivity more than 300 counts per second (cps) were intersected in seven of eight drill holes.
• Significant structure and alteration: Strongly graphitic fault rocks were intersected on both limbs of the Wishbone target area, coincident with widespread highly prospective clay-sericite alteration and hydrothermal hematite. These rocks and alteration products signal an ideal environment for basement hosted uranium deposits.
• Prospectivity model confirmed: Elevated radioactivity and increased hydrothermal alteration at Wishbone are largely associated with stacked graphitic structural zones, indicating favourable corridors for fluid movement and uranium deposition akin to other basement-hosted Athabasca deposits.
• Assays pending and follow-up drilling planned: Following uranium assay and geochemical analysis of drill core samples, additional geophysics and a second phase drilling program are being planned to follow up along strike of mineralized drill holes and continue testing of priority regional drill targets across the project.

Galen McNamara, chief executive officer of Aero Energy, commented: "The results from our initial drilling at Wishbone are highly promising and reinforce our confidence in the prospectivity of the Sun Dog project. We are eager to build on these early successes with further exploration to unlock the full potential of this highly prospective region. We look forward to sharing the assay results from our initial summer drill programs in the coming weeks."

The project is currently under a three-year earn-in option agreement with Standard Uranium, which was executed on Oct. 20, 2023. The program was financed by Aero and operated by Standard Uranium. Sun Dog covers an area of 48,443 acres across nine mining claims, located 15 kilometres (km) from Uranium City on the northern margin of the Athabasca basin. It hosts the historical Gunnar uranium mine, which was discovered in 1952 and became the largest uranium producer globally in 1956. The Gunnar mine produced approximately 18 million pounds (lb) of U3O8 between 1953 and 1981 (1) (2).

2024 drill program -- initial results

The summer drill program comprised eight drill holes totalling 1,593 metres at the high-priority Wishbone target area following completion of a VTEM Plus (versatile time-domain electromagnetic) survey and geophysical modelling earlier this year. A summary of radiometric results is provided in an attached table and drill hole information is provided in another table.

Wishbone target area:

• Approximately five kilometres of strike length along a regional-scale anticline, defined by strong VTEM conductors with associated radioactivity;
• Graphitic pelitic rocks have been mapped along both fold limbs, hosting strong radioactivity up to 22,300 cps (RS-125 scintillometer);
• Mineralized crosscutting faults have been mapped in the overlying rocks, which intersect the uranium-bearing graphitic pelite unit;
• Historical outcrop sampling at the northwestern graphitic pelite exposure returned assay results of 0.32 per cent U3O8 and 0.30 per cent copper (Cu) (SMDI No. 2095).

Targets were selected and prioritized through an iterative approach working in collaboration with Standard, targeting compelling geophysical signatures and favourable geological/structural settings. Recent prospecting and mapping at the Wishbone target area outlined multiple outcrops of favourable uranium host rocks, including graphitic pelite, which is commonly radioactive over more than 200 m of collective strike length.

The eight completed drill holes encountered highly favourable geological settings for high-grade basement-hosted deposits associated with the Athabasca basin, including:

• Intervals of anomalous radioactivity (more than 300 cps) intersected in seven of the eight drill holes completed, associated with structural zones and favourable rock types, including graphitic pelite.
• Graphitic-sulphidic stacked shear zones were encountered in multiple holes, many featuring prominent brittle reactivation features, including breccias, cataclasites and fault gouge.
• Significant hydrothermal alteration was intersected within all holes, including widespread hematization redox front alteration halos, sericitization and structure-hosted chloritization. Strongly graphitic fault rocks are present all eight drill holes. Holes that intersected deformed pelitic gneiss were to host multiple metres of moderate to intense graphite.
• Regional structural setting confirmed, comprising an anticline with faulted hangingwall rocks overlying multiple graphitic horizons, effectively doubling prospective strike length due to folding (both limbs are prospective at Wishbone).

The company considers radioactivity readings more than 300 cps to be anomalous. Natural gamma radiation in outcrop reported in this news release was measured in counts per second using a hand-held RS-125 superspectrometer and a downhole Reflex EZ gamma probe. Readers are cautioned that scintillometer and gamma probe readings are not uniformly or directly related to uranium grades of the rock sample measured and should be treated only as a preliminary indication of the presence of radioactive minerals.

Other high-priority target areas, including McNie, Haven, Java, Skye and Spring Dome, are being reviewed with new data sets and models for a possible winter drill program in 2025.

Next steps

Drill core samples have been collected systematically throughout all drill holes and zones of radioactivity higher than 300 cps, and will be submitted to SRC Geoanalytical Laboratories in Saskatoon for U3O8 assay and multielement characterization. These analytical results will be integrated with the detailed logging information to prioritize follow-up target areas for future drill testing, in addition to testing of numerous other priority regional targets.

The scientific and technical information contained in this news release has been reviewed, verified and approved by Galen McNamara, PGeo, CEO of the company and a qualified person as defined in National Instrument 43-101.

Historical data disclosed in this news release relating to sampling results on the Sun Dog project are historical in nature. Neither the company nor a qualified person has yet verified these data, and therefore investors should not place undue reliance on such data. The company's future exploration work will include verification of the data. The company considers historical results to be relevant as an exploration guide, and to assess the mineralization and economic potential of the project.

About Aero Energy Ltd.

Aero Energy is a mineral exploration and development company advancing a district-scale 250,000-acre land package in the historic Uranium City district within Saskatchewan's Athabasca basin. Aero Energy is focused on uncovering high-grade uranium deposits across its flagship optioned properties -- Sun Dog, Strike and Murmac -- in addition to its fully owned properties. With the application of modern exploration techniques, the company has identified over 50 shallow drill-ready targets and 125 kilometres of target horizon on the frontier north rim of the Athabasca basin. Aero Energy is tapping into the Athabasca basin's emerging potential for high-grade, unconformity-style mineralization.

References

(1) According to the 2022 winter mineral assessment report, Sun Dog property, Northern Saskatchewan, Canada, by Standard Uranium, 2022.

(2) Information obtained from Saskatchewan Mineral Deposit Index and historical report from Uranium City Resources, 2007.

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