Mr. David Suda reports

AMERICAN FUTURE FUEL RECEIVES DRILLING PERMIT TO BEGIN DRILL CONFIRMATION OF HISTORICAL INFERRED URANIUM RESOURCE OF 18.98 MILLION POUNDS(I) AT CEBOLLETA

The New Mexico Mining and Minerals Division has issued to American Future Fuel Corp. its first drilling permit at its 100-per-cent-owned flagship Cebolleta uranium project located in the Grants uranium mineral belt, 35 miles (56 kilometres) west of Albuquerque, N.M.

Cebolleta is an advanced uranium exploration project with a historical uranium inferred mineral resource of 5.6 million tons (5.1 million tonnes) at an average grade of 0.17 per cent eU3O8 (triuranium octoxide)containing 18.98 million pounds (8,600 tonnes) U3O8 according to a 2014 National Instrument 43-101 technical report commissioned by previous owner, Uranium Resources Inc. (1). The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the company is not treating the historical estimate as a current mineral resource.

To prepare a current resource estimate, the company has planned three phases of drilling to confirm historical drilling data. This first permit comprises phase 1 and allows for 22 holes to be drilled in area I of the project, targeting several generations of historical drilling that identified seven shallow mineralized horizons. Examples of reported historical drill intercepts of uranium mineralization to be confirmed during phase 1 are included in the attached table.

The company has entered a contract with Stewart Brothers Drilling Co. of Grants, N.M., to complete phase 1, and drilling is scheduled to begin in August, 2023.

"The receipt of this drilling permit from New Mexico Mining and Minerals Division allows the company to initiate confirmation of the historical resource at Cebolleta, with the goal of producing a current mineral resource estimate," stated American Future Fuel chief executive officer David Suda. "The Grants mineral belt, where our flagship Cebolleta project is situated, is host to many significant uranium deposits, and we are confident that, given the history of the project, there is a high likelihood of confirming the historical resource."

Planning is under way for phases 2 and 3 drilling permits. Phase 2 is anticipated to allow 20 to 30 confirmation holes in area III of the project. The company anticipates starting phase 2 drilling during the fourth quarter of 2023 or first quarter of 2024, pending receipt of a second permit. Phase 3 is anticipated to be infill drilling as needed, pending results of phase 1 and phase 2 drilling, and is anticipated to begin mid to late 2024.

Overview of the Cebolleta uranium project

Cebolleta is an advanced uranium exploration project located in Cibola county, New Mexico. The project is approximately 35 miles (56 km) west of Albuquerque and lies within the prolific Grants uranium mineral belt, one of the largest concentrations of sandstone-hosted uranium deposits in the world. The Grants uranium mineral belt has historically produced 347 Mlb U3O8 or about 37 per cent of all uranium produced in the United States (2).

American Future Fuel has a 100-per-cent leasehold interest in Cebolleta (6,700 acres mineral rights, 5,700 acres surface rights), which comprises multiple known uranium deposits and several previously operating uranium mines.

Known deposits at Cebolleta uranium project

Cebolleta has been subject to extensive exploration and development from the 1950s through 1980s. Past efforts revealed several significant sandstone-hosted uranium deposits ranging from 200 to 800 feet (60 metres to 240 m) deep in the Jurassic Jackpile sandstone. These deposits were amenable to both surface and underground mining, which culminated from 1975 to 1981 when over 3.8 Mlb U3O8 was produced from the JJ No. 1 and St. Anthony mines (3).

The vast majority of known uranium mineralization still exists at Cebolleta -- namely from the Sohio area (mineralization in areas I to V) and the St. Anthony area (mineralization surrounding the St. Anthony pit North, St. Anthony pit South and Willie P mines).

The Sohio area of the project is host to a historical uranium inferred mineral resource of 5.6 M tons (5.1 M tonnes) at an average grade of 0.17 per cent eU3O8 containing 18.98 Mlb (8,600 tonnes) U3O8 according to a 2014 technical report commissioned by previous owner, Uranium Resources (4). The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the company is not treating the historical estimate as a current mineral resource.

The company possesses a large database of maps and drilling logs detailing over 3,500 drill holes completed at the project by past owners/operators. This database was the basis for the historical estimate as well as the company's continuing confirmation drilling.

The St. Anthony deposits, in and surrounding the St. Anthony open pits, have not been modelled, as the large amount of historical data for St. Anthony has not yet been synthesized into a useable database for resource estimation. The company believes the St. Anthony area mineralization represents significant resource expansion potential for the project.

Qualified person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101, and reviewed and approved by Mark Mathisen, CPG, SLR International Corp., Denver, Colo., an independent geological consultant to the company and a qualified person as defined in National Instrument 43-101.

About American Future Fuel Corp.

American Future Fuel is a Canadian-based resource company focused on the strategic acquisition, exploration and development of alternative energy projects. The company holds a 100-per-cent interest in the Cebolleta uranium project, located in Cibola county, New Mexico, United States, and situated within the Grants mineral belt, a prolific mineral belt responsible for approximately 37 per cent of all uranium produced in the United States of America.

(1) NI 43-101 technical report on Resources Cebolleta uranium project, Cibola county, New Mexico, United States -- effective date March 24, 2014.

(2) "Uranium resources in the Grants uranium district, New Mexico: An update," Virginia T. McLemore, Brad Hill, Niranjan Khalsa and Susan A. Lucas Kamat, 2013.

(3) NI 43-101 technical report on Resources Cebolleta uranium project, Cibola county, New Mexico, United States -- effective date March 24, 2014.

(4) NI 43-101 technical report on Resources Cebolleta uranium project, Cibola county, New Mexico, United States -- effective date March 24, 2014.

(i) The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the company is not treating the historical estimate as a current mineral resource.

We seek Safe Harbor.