Mr. Galen McNamara reports

AERO ENERGY COMPLETES ACQUISITION OF KRAKEN ENERGY TO CREATE A PREMIER NORTH AMERICAN URANIUM DEVELOPER

Further to Aero Energy Ltd. and Kraken Energy Corp.'s press release dated April 2, 2025, the plan of arrangement under the Canada Business Corporations Act whereby Aero acquired all of the issued and outstanding common shares of Kraken pursuant to the arrangement agreement dated April 1, 2025, between Aero and Kraken, has closed.

Galen McNamara, chief executive officer and director of Aero, stated: "We're proud to merge with Kraken and create a leading uranium explorer that delivers substantial value to shareholders of both companies. By uniting Aero's Athabasca basin strengths with Kraken's U.S. assets, we're positioned to unlock permits, scale effectively and capture the uranium market's momentum with certainty."

Brian Goss, former chief executive officer of Kraken and incoming director of Aero, stated: "We welcome this merger with Aero as a decisive step to deliver strong returns for shareholders of both companies. Aero's exploration strength and capital expertise bolster our U.S. assets, notably the Apex property. Our recent permitting efforts at Apex have demonstrated our ability to work with the USFS to get to drilling in the near future. This transaction will clear the path through permitting to capitalize on the uranium market's growth with proven resolve."

On June 17, 2025, the Supreme Court of British Columbia issued the final order to approve the arrangement. The arrangement received the requisite approval of the shareholders of Kraken at the annual general and special meeting of Kraken shareholders held on June 11, 2025.

Pursuant to the terms of the arrangement agreement, all of the issued and outstanding Kraken shares were exchanged for an aggregate of 57,922,329 common shares of Aero on the basis of 0.97037 Aero share for each Kraken share. Immediately following the completion of the arrangement, there are 179,849,606 Aero shares issued and outstanding, on an undiluted basis, of which approximately 67.79 per cent are held by the shareholders of Aero immediately prior to the completion of the arrangement and approximately 32.21 per cent are held by the former Kraken shareholders.

All outstanding stock options of Kraken were exchanged for stock options of Aero, and all Kraken share purchase warrants became exercisable to acquire Aero shares, in amounts and at exercise prices adjusted in accordance with the exchange ratio.

The board of directors of Aero immediately following the completion of the arrangement consists of five members, composed of three existing directors of Aero and two nominees of Kraken, being Mr. Goss and Garrett Ainsworth. Mr. McNamara, Grace Marosits and Brandon Bonifacio will continue to serve as directors of Aero, following the resignation of Rony Zimerman. Mr. McNamara will continue to serve as chief executive officer and director of the Aero, and Carson Halliday was appointed as the chief financial officer and corporate secretary of Aero, following the resignation of Martin Bajic.

For additional details regarding the arrangement, see Kraken's management information circular dated May 9, 2025, a copy of which can be found under Kraken's profile under SEDAR+.

The Kraken shares are expected to be delisted from the Canadian Securities Exchange, effective as of the close of business on or about June 20, 2025. Aero also intends to submit an application to the applicable securities regulators to have Kraken cease to be a reporting issuer and terminate its public reporting obligations.

Action required by Kraken shareholders

Registered shareholders of Kraken are reminded to submit a duly completed letter of transmittal and, as applicable, the certificate(s) and/or direct registration system advice(s) representing their Kraken shares to Computershare Investor Services Inc.

Early warning reporting

Immediately prior to the completion of the arrangement, Aero did not beneficially own, directly or indirectly, any Kraken shares or other securities of Kraken. Immediately following the completion of the arrangement, Aero beneficially owns, directly or indirectly, all of the issued and outstanding Kraken shares. A copy of the early warning report in respect of the acquisition of the Kraken shares may be requested from Aero by mail at Suite 918, 1030 West Georgia St., Vancouver, B.C., V6E 2Y3, and will be filed under Kraken's SEDAR+ profile.

About Aero Energy Ltd.

Aero and Kraken have merged to form a leading North American uranium developer, combining Aero's district-scale 250,000-acre land package in Saskatchewan's Athabasca basin with Kraken's high-grade uranium properties in the United States. Aero contributes its flagship Sun Dog, Strike and Murmac projects, guided by an award-winning team responsible for discoveries like Gryphon, Arrow and Triple-R, with over 50 shallow drill-ready targets across 125 kilometres of target horizon in the emerging Athabasca basin. Kraken adds its 100-per-cent-owned Apex uranium property, Nevada's largest past-producing uranium mine, and the staked Huber Hills property, covering 1,044 hectares in Nevada, encompassing the historic Race Track open-pit mine. This merger creates a robust portfolio positioned to unlock high-grade and unconformity-style mineralization and capitalize on growing uranium demand.

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