Mr. Nolan Peterson reports

ATLAS SALT EXPANDS STRATEGIC MOU WITH SANDVIK MINING SUPPORTING $132 MILLION OF EQUIPMENT AND SERVICES AT GREAT ATLANTIC SALT PROJECT

Atlas Salt Inc. has expanded its strategic relationship with Sandvik Mining in connection with the updated feasibility study (UFS) for the Great Atlantic salt project, located near St. George's, Nfld.

Building on the comprehensive non-binding memorandum of understanding (MOU) announced in September, 2024, Atlas Salt and Sandvik have expanded the scope of the MOU to reflect the full construction and ramp-up requirements outlined in the UFS. The expanded scope contemplates Sandvik supplying underground mobile mining equipment, technology and associated services, with vendor-supported financing for Sandvik capital equipment required during project construction and the planned ramp-up to steady-state production of 4.0 million tonnes per year (Mtpa).

Nolan Peterson, president and chief executive officer of Atlas Salt, commented:

"The updated feasibility study reflects the scale and longevity of the Great Atlantic salt project, and our relationship with Sandvik has evolved accordingly. What began as an equipment supply arrangement has developed into a long-term strategic partnership aligned with construction, ramp-up and decades of expected operations. This partnership supports execution certainty, operational readines, and the disciplined development of the project."

Peter Corcoran, vice-president of Sandvik Mining Canada, added:

"Sandvik is pleased to continue working with Atlas Salt as the Great Atlantic salt project advances. The UFS confirms a long-term vision that aligns well with our portfolio of electrified equipment, automation and life cycle services, and our strategic initiatives in the Canadian market. We look forward to continuing to support the project through its development and operation."

Expanded scope of the Sandvik relationship

Based on the mine plan, production profile and capital assumptions presented in the UFS, the anticipated commercial value of Sandvik-supplied equipment, technology and services during the construction and ramp-up phases of the project is estimated at approximately $132-million, representing an increase of $59-million from the $73-million contemplated under the original MOU.

The estimated $132-million scope includes:

• Underground mobile mining equipment and associated services required for mine construction and initial operations;
• Additional fleet units, electrification, automation and digital systems deployed during the multiyear ramp-up to full production capacity;
• Equipment quantities and deployment schedules consistent with the UFS development plan and ramp-up timelines postconstruction.

In connection with the product and service offering, Sandvik has expressed a non-binding financing arrangement to support the acquisition of certain Sandvik capital equipment, advanced mining system and technology contemplated in the UFS. The terms of financing remain subject to customary due diligence, receipt of Sandvik's required internal approvals, and negotiation and execution of the definitive agreements.

Alignment with project execution strategy

Sandvik continues its role as an integrated project delivery (IPD) partner in supporting Atlas Salt's UFS and execution strategy by aligning mine design, equipment selection, automation and maintenance planning with the project's safety, productivity and sustainability objectives.

The UFS contemplates a predominantly electric and battery-electric underground fleet, supported by automation and digital systems, as a core element of the project's operating strategy. Sandvik's technology platform, including AutoMine, digital fleet management tools and battery solutions, is expected to support these objectives while reducing operating risk and improving long-term cost certainty. Operating with Sandvik's battery electric and electric underground fleet, as contemplated in the UFS, is expected to reduce diesel emissions, underground heat load and ventilation demand, resulting in lower greenhouse gas emissions, improved working conditions and reduced energy intensity over the life of the project.

Options grant

The company also announces that, subject to approval of the TSX Venture Exchange, the board of directors has approved the issuance of incentive stock options to certain directors, officers, employees and consultants of the company pursuant to the company's existing 10-per-cent rolling stock option plan.

A total of 3.15 million options have been granted. Each option entitles the holder to purchase one common share in the capital of the company at an exercise price of 98 cents per share, which is equal to or greater than the market price of the company's common shares on the date of grant. The options are exercisable for a period of five years from the date of grant for directors and officers, and will expire on Feb. 12, 2031, subject to the terms of the stock option plan. The options granted to all others are exercisable for a period of three years from the date of grant and will expire on Feb. 12, 2029, subject to the terms of the stock option plan.

The options will be issued as follows:

• Directors: 1.2 million options;
• Officers: one million options;
• Employees: 550,000 options;
• Consultants: 400,000 options.

All options granted are subject to vesting periods of either one or two years.

The company confirms that the options are being granted for future services and that the recipients are bona fide directors, officers, employees or consultants of the company in accordance with applicable exchange requirements.

After the issuance of the options, 2,693,611 options will remain available for issuance under the Stock option Plan.

Market-maker

The company further announces that it has retained Integral Wealth Securities Ltd. to provide market-making services in accordance with exchange policies. Integral will trade securities of Atlas Salt on the TSX Venture Exchange for the purpose of maintaining an orderly market for the company's securities.

The agreement between the company and Integral, executed on Nov. 19, 2025, is for an initial term of three months. The agreement outlines that Integral will receive compensation of $6,000 per month, with the first monthly payment paid on the signing of the agreement by the company, and thereafter, the fee will be payable on the first day of each month. After the third month, the company may terminate the agreement on 30-day written notice. There are no performance factors in the agreement and Integral will not receive shares or options as compensation.

Atlas Salt and Integral are unrelated and unaffiliated entities; Integral is a member of the Canadian Investment Regulatory Organization (CIRO) and can access all Canadian stock exchanges and Alternative Trading Systems. The capital and securities required for any trade undertaken by Integral as principal will be provided by Integral.

About Atlas Salt Inc.

Atlas Salt is developing Canada's next salt mine and is committed to responsible and sustainable mining practices. With a focus on innovation and efficiency, the company is poised to make significant contributions to the North American salt market while upholding its values of environmental stewardship and community engagement.

We seek Safe Harbor.