Mr. Kal Malhi reports

HERTZ ENERGY SUBMITS APPLICATIONS TO ACQUIRE URANIUM FOCUSED CLAIMS IN NAMIBIA

Hertz Energy Inc. has submitted applications for uranium exclusive prospecting licences (EPLs) in Namibia.

Namibia is a country of diverse geology and has one of the richest uranium mineral reserves in the world. There are currently two large operating mines, the Husab and Rossing mines, in the Erongo region and five major exploration projects planned to advance to production in the next few years as the country embraces the green energy transition. Uranium mining in Namibia is of considerable importance to the national economy. In 2023, Namibia produced the third-largest quantity of uranium worldwide at 6,382 tonnes, ranked only behind Kazakhstan and Australia.

Namibia is a premier operational uranium jurisdiction with a 45-year history of safe uranium production and exportation. It possesses excellent utilities, transportation and exportation infrastructure as well as established support for uranium mining from both the Namibian government and local communities. Namibia enjoys a combination of political stability, security, a strong rule of law and an assertive development agenda. In 2023, mining contributed approximately 12 per cent of Namibia's gross domestic product and employs approximately 16,000 people.

Hertz Energy Namibia uranium project

The application areas cover an area of 9,627.84 hectares located in central Namibia in the Erongo region which hosts numerous primary and secondary uranium deposits. Primary economic uranium is hosted mainly in sheeted D-type alaskites which occur both as crosscutting dikes and as bedding and/or foliation-parallel sills. The sheets can amalgamate to form larger granite plutons or granite stockworks made up of closely spaced dikes and sills. The mineralized alaskites tend to occur at marked stratigraphic levels, often associated with the Khan-Rossing formation boundary, or, where the Rossing formation is missing, the Khan-Chuos/Arandis formation boundary. Secondary uranium deposits occur in calcretes in the coastal plain of the Namib Desert. The deposits are associated with ancient river systems that flowed westward from the Great Escarpment during the upper Cretaceous and lower Cenozoic periods. Uranium mineralization is typically located in calcretised fluvial channels which tend to be buried with little or no obvious surface expression to identify them.

Licence application EPL-10185

EPL-10185 is located 22 kilometres east of the coastal town of Swakopmund. Its geology comprises units from the Kuiseb, Karibib, Arandis, Chuos and Khan formations intruded by granodiorites and uranium prospective granites. Most of the western and central parts of the licence is under recent surficial cover made up of sand, gravel, scree and calcrete. Preliminary interpretation of regional airborne radiometric data from the Namibian Ministry of Mines and Energy indicates radiometric anomalies coinciding with favourable geology for primary alaskite-hosted uranium mineralization. This is the similar style of mineralization found at Bannerman Energy's Etango deposit located 15 km southeast of EPL-10185 as well as that at the Rossing mine located 30 km to the northeast. The Rossing mine is one of the largest and longest-operating uranium open cast mines in the world producing now for 46 years. In 2022, Rossing produced 2,659 tonnes U3O8 (triuranium octoxide) and currently has a feasibility study under way to extend the mine life beyond 20265.

Licence application EPL-10186

EPL-10186 is located 40 km northeast of the coastal town of Swakopmund. Most of the licence is covered by recent sand, gravel, scree and calcrete, with a few outcrops of mica schist, calc-silicate rock, marble and red granite. There are two prominent subsurface water conduits/streams which, in general, are believed to be geographically similar to where paleo-channels carrying uranium-rich waters would have flowed. Preliminary interpretation of regional airborne radiometric data from the Namibian Ministry of Mines and Energy indicates a strong and consistent radiometric anomaly trending northeast-southwest and coincident with the subsurface streams. The company is targeting secondary uranium mineralization with potential for primary mineralization to the east of the application area. This is the similar style of mineralization found at Orano's Trekkopje mine six kilometres north of EPL-10186 and Elevate Uranium's Marenica deposit 40 km to the north with a resource of 46 million pounds U308 at a 93-part-per-million-U3O8 cut-off grade.

The applications were filed by Odikwa Geoservices, led by Mary Barton, a professional natural scientist (SACNASP) and a qualified person for the purposes of National Instrument 43-101. In conjunction with filing the prospecting licences, Odikwa Geoservices conducted a geological desktop review to locate prospective ground within the region of Erongo for the purposes of the licensing application. Odikwa Geoservices is a respected local geology company, providing high-quality geology, exploration, mineral resource, mining and revenue management solutions to the Namibian mining industry.

"We are devoted to increasing our footprint in the green energy metals markets and are excited to enter Namibia this year. Namibia has a long history of uranium exploration and production," stated Kal Malhi, chief executive officer and director of Hertz Energy. "Mary Barton and her team at Odikwa Geoservices have been instrumental in setting up our operations in the country. We are fortunate to have access to an expert local geological consultant company and look forward to developing and executing our exploration initiatives in the coming months once we receive government approvals."

The EPL applications have been acquired for the cost of the applications submissions and no other payments of stock issuances are payables on the EPL acquisitions.

Qualified person

Ms. Barton, PrSciNat, MGSSA, MSc, geology, is the qualified person for the Hertz Energy Namibia uranium project as defined by National Instrument 43-101 and has approved the technical disclosure contained in this news release.

About Hertz Energy Inc.

The company is a British Columbia-based junior exploration company primarily engaged in the acquisition and exploration of energy metals mineral properties. The company's lithium exploration projects include the Lucky Mica lithium project, the AC/DC lithium project and the Patriota lithium project. The Lucky Mica project is 939 hectares located within the Arizona pegmatite belt in the Maricopa county of Arizona, United States. The AC/DC project is 26,500 hectares located in the renowned James Bay lithium district in Quebec, Canada, just 26 km southeast of the Covette lithium project owned by Patriot Battery Metals and is contiguous to Rio Tinto's Kaanaayaa project claims. The Patriota lithium project is 2,963 hectares located within the eastern Brazilian pegmatite province in Minas Gerais, Brazil, and hosts similar geology as Sigma's green lithium mine. The company's uranium projects include the Cominco uranium project located in Bathurst Inlet, Nunavut, Canada, and its recent applications for exclusive prospecting licences in Namibia.

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