Mr. Nicolas Luksha reports

MUSTANG ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Further to its news release dated Dec. 19, 2025, Mustang Energy Corp. has closed a non-brokered private placement of two million flow-through units of the company at a price of nine cents per flow-through unit for aggregate gross proceeds of $180,000.

Each flow-through unit consists of one common share in the capital of the company to be issued as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one non-flow through common share at a price of 15 cents for a period of two years following the issue date of the flow-through units.

Each flow-through share is issued as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada). The company intends to use the proceeds of the offering for the exploration of the company's uranium projects in the Athabasca basin in Saskatchewan. The gross proceeds from the issuance of the flow-through shares will be used to incur resource exploration expenses, which will constitute Canadian exploration expenses, as defined in Subsection 66.1(6) of the tax act, and flow-through critical mineral mining expenditures, as defined in Subsection 127(9) of the tax act, which will be renounced with an effective date no later than Dec. 31, 2025, to the purchasers of the flow-through shares in an aggregate amount not less than the gross proceeds raised from the issue of the flow-through shares.

The securities issued in the offering are subject to a hold period expiring on May 1, 2026.

In connection with the offering, the company paid a finder's fee to Red Cloud Securities Inc. of $12,600 in cash and 140,000 share purchase warrants. Each finder warrant is exercisable into one common share at a price of 15 cents per finder warrant share until Dec. 31, 2027, and is subject to a hold period until May 1, 2026.

About Mustang Energy Corp.

Mustang is a resource exploration company focused on acquiring and developing high-potential uranium and critical mineral assets. The company is actively exploring its properties in Northern Saskatchewan, Canada, and holds 77,318 hectares in around the Athabasca basin. Mustang's flagship property, Ford Lake, covers 7,743 hectares in the prolific eastern Athabasca basin, while its Cigar Lake East and Roughrider South projects span 3,442 hectares to the north and the Spur project to the south covers 17,929 hectares. Mustang has also established its footprint in the Cluff Lake region of the Athabasca basin with the Yellowstone project (21,820 hectares) and further expanded its presence in the south-central region of the Athabasca basin with the Dutton project (7,633 hectares).

We seek Safe Harbor.