Mr. Galen McNamara reports

AERO ENERGY AND FORTUNE BAY TO PLAN WINTER DRILLING AT THE MURMAC PROJECT, ATHABASCA BASIN, SASKATCHEWAN

Aero Energy Ltd. is planning a winter 2025 drilling program on the Murmac uranium project as a follow-up to the high-grade uranium discovered during the summer 2024 drill program. The project is located in Northern Saskatchewan near Uranium City, on the northern margin of the Athabasca basin. The winter program, focused on the Howland Lake North target area, has been approved in accordance with the option agreement with Fortune Bay Corp. and is fully financed.

Highlights:

• Shallow, high-grades intersected: Drill hole M24-017, completed during summer 2024 on Howland Lake North, intersected 8.40 metres (m) at 0.30 per cent U3O8, including 1.20 m at 1.79 per cent U3O8, with individual assays up to 13.80 per cent U3O8 and 4.54 per cent U3O8 over 0.10 m. The high grades (more than 1 per cent U3O8) occurred at only 64 m below surface within favourable structured graphitic rocks.
• Howland Lake North -- primed for discovery: In addition to the high grades intersected in M24-017, the anomalous uranium and elevated geochemical pathfinders in all of the three holes around M24-017 (50 m downdip and along strike) indicate the presence of a pervasive Athabasca basin unconformity-related mineralizing system along the Howland Lake North graphitic conductor. Stepout drilling is warranted along the one kilometre (km) extent of this graphitic conductor that underlies the shallow Howland Lake.
• Focused winter program: Approximately six drill holes (approximately 900 metres) are planned along the Howland Lake North graphitic conductor. A detailed radon-in-water survey will be conducted prior to drilling to provide additional focus for drill targeting. The radon-in-water survey will also partially cover a graphitic conductor underlying southern Howland Lake (Howland Lake South), where 0.17 per cent U3O8 over 0.1 m was intersected in structured graphitic rocks (drill hole M22-012) during 2022 drilling by Fortune Bay.
• One of many priority targets: In addition to Howland Lake North, numerous other priority targets have been identified along Murmac's extensive graphitic corridors (more than 35 km of strike) that warrant future drill testing. Similar to Howland Lake North, these targets include compelling geophysical signatures, favourable geological/structural settings and proximity to surface uranium occurrences.

Galen McNamara, chief executive officer for Aero, commented: "We are excited to be advancing exploration at Murmac in collaboration with Fortune Bay, building on momentum from a successful summer drilling campaign. The project has proven to be highly prospective, with its largely unexplored graphitic corridors beneath thin surficial cover -- and the latest drill results further underscore the potential for a shallow, high-grade basement-hosted discovery. We are eager to mobilize our teams for the upcoming winter program, with a focused effort on the Howland Lake North target area."

Final assay results from summer 2024

A total of eight drill holes (1,685 m) were completed at Murmac during June and July, 2024, testing compelling geophysical signatures and favourable geological/structural settings along the Howland, Armbruster and Pitchvein corridors. The completed drill holes encountered highly favourable geological settings for high-grade basement-hosted deposits associated with the Athabasca basin, along with anomalous radioactivity.

A total of 149 samples were collected to confirm uranium mineralization and to characterize the geochemical associations. All samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon, Sask., Canada, for processing. Assay results for the first batch of samples was reported in a news release dated Oct. 8, 2024, and the second and final batch of sample results is included herein.

Anomalous uranium (more than 100 parts per million (ppm)) was encountered in five of the eight drill holes, summarized in the attached table. These drill holes intersected shallow-seated anomalous uranium with pathfinder element enrichment typical of high-grade basement-hosted deposits of the Athabasca basin. These anomalies are typically found in host rocks, including thick and strongly graphitic target units in contact with quartzites, providing favourable competency/rheological contrast. Brittle faulting and brecciation were observed within or proximal to the graphitic units and were typically associated with favourable hydrothermal alteration, including abundant hematite, chlorite, sulphides, clays and/or bleaching.

Winter 2025 exploration program

Radon-in-water survey

A high-resolution radon-in-water survey is planned for early January, 2025, to cover Howland Lake North prior to drilling and also to partially cover a graphitic conductor underlying southern Howland Lake to generate drill targets for future testing. Approximately 300 to 350 stations are planned, with scope to infill coverage at anomalous locations.

This survey tests the concentration of radon gas (a product of the radioactive breakdown of uranium) in water just above lake bottom. This method has been shown to be effective at other exploration programs (Fission Uranium Corp.'s Triple R deposit), identifying anomalous concentrations of radon gas in water directly overlying uranium deposits.

Diamond drilling

The results of the radon-in-water survey will be used to plan stepout drill holes along approximately 900 m of the untested graphitic conductor underlying northern Howland Lake. The planned winter 2025 drilling program is expected to include approximately six diamond drill holes (approximately 900 m).

Technical disclosure

All summer 2024 drilling was carried out with NQ2 diameter core. The oriented drill cores have been subjected to comprehensive logging and sampling to characterize mineralization, alteration and structure. Sample intervals ranged from 10 to 135 centimetres (cm).

Half-split drill core samples were submitted to the Saskatchewan Research Council (SRC) Geoanalytical Laboratories (ISO/IEC 17025:2005 accredited) for uranium assay and multielement characterization. Samples are screened upon receipt by SRC, and samples with significantly elevated radioactivity are identified and separated out for the SRC ICP1 multielement uranium exploration package, with an additional assay for U3O8 in weight percentage where uranium content exceeds a 1,000 ppm threshold. Analysis of the remaining samples was carried out through the SRC ICP-MS2 basement exploration package.

Sample preparation for all samples includes drying, jaw crushing to 60 per cent passing minus two millimetres (mm) and pulverizing to 90 per cent passing minus 106 microns. The ICP1 package includes ICP-OES (inductively coupled plasma optical emission spectroscopy) on a total digestion and ICP-MS (inductively coupled plasma mass spectrometry) on a partial digestion, with U3O8 assay carried out by partial digestion and analysis by ICP-OES. The ICP-MS2 package consists of three separate analyses, including: (1) ICP-MS on a partial digestion; (2) ICP-OES for major and minor elements on a total digestion; and (3) and ICP-MS analysis for trace elements on the total digestion. Partial digestions are performed using HNO3:HCl. Total digestions are performed using a mixture of concentrated HF:HNO3:HClO4. Additional analysis for boron content was obtained for all samples through NaO2/NaCO3 fusion followed by ICP-OES.

Certified reference material (CRM) blanks and standards were inserted into the sample sequence, at a targeted rate of approximate one per every 20 samples, as part of an internal QA/QC (quality assurance/quality control) process. In addition to this, SRC includes various standards and carried out repeat analyses for selected samples as part of its laboratory QA/QC procedure.

The historical drill results obtained by SMDC in drill holes CKI-9 and CKI-10 can be found within the SMAD references 74N07-0310 and 74N07-0311 and have not been verified.

Qualified person

The scientific and technical information contained in this news release has been reviewed, verified and approved by Galen McNamara, PGeo, interim CEO of the company and a qualified person, as defined in National Instrument 43-101. The company considers uranium mineralization with concentrations greater than 1.0 weight per cent U3O8 to be high grade. The company considers radioactivity readings greater than 300 counts per second (cps) to be anomalous.

About Aero Energy Ltd.

Aero Energy is a mineral exploration and development company advancing a district-scale 250,000-acre land package in Saskatchewan's historic Uranium City district within the Athabasca basin. Aero 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. Aero is led by an award-winning technical team responsible for discoveries along the prolific Patterson corridor, which include the Gryphon, Arrow and Triple-R deposits. With over 50 shallow drill-ready targets identified and 125 km of target horizon, Aero is tapping into the basin's emerging potential for high-grade, unconformity-style mineralization.

We seek Safe Harbor.