Mr. Duane Parnham reports

CRITICAL ONE ANNOUNCES PROPOSED SPIN-OUT OF KENORA AND NAMIBIA ASSETS INTO 'CRITICAL TWO' AND ENGAGES MICON FOR INDEPENDENT REVIEW AT KENORA PROPERTY

Critical One Energy Inc. has engaged Micon International Ltd. to complete an independent technical review of the company's 100-per-cent-owned Kenora uranium property in Northwestern Ontario.

Critical One remains focused on its flagship Howells Lake antimony-gold project, where the financed 2026 to 2027 exploration program continues and its budget is unaffected.

Highlights:

• Independent technical review at Kenora: Micon's work will include an audit of the exploration work completed during the former option period.
• 100-per-cent ownership retained: American Atomics Inc. terminated its option on the Kenora property effective May 3, 2026, and the company's 100-per-cent interest in the Kenora property was restored (see press release issued Aug. 12, 2026).
• Proposed Critical Two spinout: The company intends to transfer the Kenora property and its uranium and copper interests in Namibia to a new company, proposed to be named Critical Two Energy Inc., and to distribute the shares of Critical Two by way of dividend to Critical One shareholders of record on a record date to be determined. Critical Two is expected to seek a separate stock exchange listing.
• Contractual and title matters: Critical One continues to pursue its contractual rights, including with respect to damages relating to mining claim 531620, which lapsed while the Kenora property was under option, and its position that ten claims staked within the agreement's area of common interest are to be transferred to the company. The company and its legal advisers continue to address these contractual and title matters.

"We are very pleased with the progress at our Howells Lake project and remain focused on building on that momentum," said Duane Parnham, executive chairman and chief executive officer of Critical One. "At the same time, we believe Kenora and Namibia also have great potential, and we want our shareholders to see that potential developed to its utmost value. Critical Two gives those uranium assets their own path forward as a critical metals venture, without taking anything away from what we are doing at the Howells Lake project."

Mr. Parnham added, "Micon built the independent technical foundation at the Howells Lake project, and we are applying the same standard at Kenora as we prepare it for its next stage."

Kenora uranium property

The Kenora property is held through the company's wholly owned subsidiary 2160083 Ontario Inc. and is located about 30 kilometres east of Kenora, Ont., along Highway 17, with road access. It covers the historic Richard Lake uranium occurrence, where underground development on two levels was completed in the 1950s, and the Bee Lake area. Previous operators reported completing 40 diamond drill holes totalling 5,552.6 metres in 2008. The historical work described in this paragraph predates the company's ownership and has not been verified by the company's qualified person named below; readers should not rely on it as current exploration results. Work financed by the former optionee comprised a 2,075 line-kilometre airborne geophysical survey in 2023, geological mapping in 2024 and five NQ diamond drill holes totalling 1,045 metres in March, 2025.

Proposed spinout and dividend of Critical Two Energy shares

The proposed transaction is intended to result in the transfer of the Kenora property and the company's Namibia uranium and copper interests to Critical Two and a pro rata distribution of Critical Two shares to eligible Critical One shareholders by way of dividend. The record date and distribution terms will be set and announced once the structure of the transaction is finalized. Shareholders are not required to take any action at this time. The tax consequences of the proposed distribution to shareholders have not yet been determined, and shareholders should consult their own tax advisers. There can be no assurance that the proposed transaction will be completed on the terms described, or at all. The company is working with legal and tax advisers on the form of the transaction. Completion requires board approval and all required regulatory, exchange and shareholder approvals. Critical Two's asset package, capitalization, management and other transaction terms will be announced as they are finalized.

Qualified person

The scientific and technical disclosure in this news release has been reviewed and approved by Matthew Trenkler, PGeo, chief geological officer of Critical One Energy Inc., a qualified person, as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Certain historical and third-party technical information described in this news release has not been independently verified by the qualified person and is included to describe the historical scope of work and the scope of Micon's review.

About Critical One Energy Inc.

Critical One Energy is a critical minerals exploration company dedicated to advancing its flagship Howells Lake antimony-gold project as a new North American source of antimony for defence, energy storage, industrial applications, and high performance technologies such as data centres and semiconductors. The Howells Lake antimony-gold project, located in Ontario, Canada, hosts high-grade antimony mineralization confirmed through a modern drilling program. The company's objective is to advance Howells Lake as a potential Canadian source of antimony and help reduce North America's dependence on foreign supply.

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