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File: Atom Provides Corporate Update (Aug 26 2016).docx

      




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August 26 2016                      TSXV: AGY.H
      US Symbol: ATURF

ATOM ENERGY PROVIDES PROJECT AND CORPORATE UPDATES
Atom Energy Inc. (TSX-V: AGY.H) ("Atom" or "the Company") provides the following project and corporate updates:

Project Update

Further to its July 25, 2016 news release regarding the Company receiving a one-month extension on its earn-in agreeme
--->nt in order to fulfill its exploration and financing commitments on the Keefe Lake Project, the Company reports that i
--->t has been unable to secure the requisite funding to exercise its option to earn a working interest in the Project.   
--->As a result, the Company's earn-in rights at Keefe Lake have been terminated.

Management and Board Appointment

The Company announces the appointment of Dr. John Veltheer to its Board of Directors.  Dr. Veltheer is a seasoned seni
--->or executive with twenty years' experience as a senior officer and as a director in both private and public companies 
--->in a number of business sectors.

The appointment to the Board is in replacement of Mr. Richard Ko, who has resigned as a director. The Company wishes t
--->o thank Mr. Ko for his past service to the Company.  

Dr. Veltheer has also been appointed as Chief Executive Officer of the Company, in replacement of Mr. Gil Schneider, w
--->ho has resigned as President and Chief Executive Officer to concentrate on other ventures.  Mr. Schneider will remain 
--->as a director of the Company.

Restructuring

Atom also announces that the board of directors is proposing to consolidate the Company's issued and outstanding commo
--->n shares on the basis of 1 new common share for every 7.5 old common shares outstanding. The consolidation will increa
--->se the Company's flexibility and competitiveness in the market place and make the Company's securities more attractive
---> to a wider audience of potential investors. The proposed 1-new-share-for-7.5-old-share consolidation would result in 
--->the number of issued and outstanding common shares of the Company being reduced from 6,852,957 common shares without p
--->ar value to 913,728 common shares without par value. 

The consolidation is subject to TSX Venture Exchange (the "Exchange") acceptance.  The effective date of the share con
--->solidation will occur immediately after Exchange approval. 

About Atom Energy 
Atom Energy is a mineral exploration company exploring for uranium in the Athabasca Basin region of northeast Saskatch
--->ewan.  
ON BEHALF OF THE BOARD OF DIRECTORS
   "D. Barry Lee"
D. Barry Lee, Director & CFO 
For information, please contact the Company:
Phone: (604) 689-8336
E-mail: info@atomenergyinc.com
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX
---> Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Su
--->ch forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are b
--->eyond the Company's control that may cause actual results or performance to differ materially from those currently ant
--->icipated in such statements.