Atomic Minerals Announces Option Agreement to Acquire Saskatchewan Mineral Claims

Rhea-AI Summary

Atomic Minerals (TSXV: ATOM) has entered into an option agreement to acquire a 100% interest in two mineral claims in Saskatchewan's Mozzie Lake project. The claims, spanning approximately 5,355 hectares, are located in the Pinkham Lake Zone, 25km northeast of the Athabasca Basin within the Charlebois-Higgingson Lake Uranium District.

Historical drilling from 1967-1968 identified an estimate of 208,300 tons grading 0.118% U3O8, approximately 491,588 pounds of U3O8. The uranium mineralization is hosted within pegmatite intrusions. To exercise the option, Atomic Minerals must:

• Issue 5,500,000 common shares upon TSXV approval
• Pay $50,000 in cash within three years

The company also has the right to purchase a 3% net smelter return royalty by issuing 5,500,000 shares to the Royalty Holder.

Positive

• Historical resource estimate of 491,588 pounds of U3O8 at 0.118% grade
• Strategic expansion of uranium portfolio in Saskatchewan's Athabasca region
• Option to acquire 100% interest in the property
• Flexible payment terms with majority in shares rather than cash

Negative

• Historical resource requires verification through new drilling
• Additional share issuance of up to 11 million shares could lead to dilution
• Cash payment of $50,000 required within three years
• Historical estimate is not compliant with current standards

Vancouver, British Columbia--(Newsfile Corp. - April 10, 2025) - Atomic Minerals Corporation (TSXV: ATOM) ("Atomic Minerals" or the "Company") is pleased to announce that it has entered into an option agreement dated April 9, 2025 (the "Option Agreement") amongst the legal and beneficial holder (the "Vendor") of two mineral claims totaling approximately 5,355 hectares located in the Province of Saskatchewan (the "Property"). Pursuant to the Option Agreement, the Vendor has granted the Company the exclusive right to acquire a 100% interest in the Property (the "Option").

The Mozzie Lake project consists of two properties situated in the Pinkham Lake Zone approximately 25km northeast of the Athabasca Basin, located within the Charlebois-Higgingson Lake Uranium District. Uranium mineralization on the properties is hosted within pegmatite intrusions. Two programs of diamond drilling in 1967 and 1968 identified an historic estimate of 208,300 tons grading 0.118% U3O8, approximately 491,588 pounds of U3O8.

The historic estimate was disclosed in Kings Resources Company Exploration - 1968 Permit 3 Area Athabasca Mining District, Saskatchewan by B.G. Gislason and C.M Trigg Dated November 1968. The Company feels the historic estimate is relevant because it speaks to the potential of the Mozzie Lake property and reliable as it was completed to the standards of the day by competent geologists. The historic estimate appears to be calculated from cross sections, under the assumption that the pegmatite bodies hosting the mineralization are conformable with the enclosing rock. Only mineralized sections grading 0.05 per cent U308 or greater were included in the calculation. The historic estimates are classified as drill indicated, which would be comparable to an inferred resource. The Company would need to twin a number of the 1967 and 1968 drill holes to move the historic estimate to an inferred resource.

Atomic Minerals cautions investors a qualified person has not done sufficient work to classify the historical estimate as current mineral resources and further cautions that the Company is not treating the historical estimate as current mineral resources.

"We are very excited to announce the acquisition of an additional uranium property with pounds in the ground. This acquisition represents another step forward in our mission to build shareholder value as Atomic Minerals advances its uranium exploration portfolio across North America," stated Clive Massey, President & CEO.

Transaction Terms

To exercise the Option and acquire a 100% interest in the Property, subject to TSX Venture Exchange ("TSXV") acceptance, the Company must:

• Issue 5,500,000 common shares (the "Consideration Shares") to the Vendor upon TSXV approval of the Option Agreement; and
• Pay $50,000 in cash to the Vendor within three years from the effective date of the Option Agreement.

The Company also has the right (but not the obligation) to purchase a 3% net smelter return royalty (the "Royalty") held by an arm's-length third party (the "Royalty Holder") by issuing 5,500,000 Consideration Shares to the Royalty Holder (the "Royalty Buy-Back"), subject to TSXV acceptance.

No finder's fees were paid on this arm's length Option Agreement.

All securities issued in connection with the Option Agreement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities laws.

None of the securities issued in connection with the Option Agreement will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

R. Tim Henneberry, PGeo (British Columbia), an adviser to the Company, is the Qualified Person as defined under National Instrument 43-101. He has reviewed and approved the technical information of this news release.

About the Company

Atomic Minerals Corporation is a publicly listed exploration company on the TSXV, trading under the symbol ATOM, led by a highly skilled management and technical team with a proven track record in the junior mining sector. Atomic's objective is to identify exploration opportunities in regions that have been previously overlooked but are geologically similar to those with previous uranium discoveries. These underexplored areas hold immense potential and are in stable geopolitical and economic environments.

Atomic's property portfolio contains uranium projects in three locations within North America, all of which have technical merit and or are known for hosting uranium production in the past. Three of the properties are located on the Colorado Plateau, an area which has previously produced 597 million pounds of U3O8. Three others are in the prolific Athabasca Basin region.

For additional information about the Company and its projects, please visit our website at www.atomicminerals.ca

ON BEHALF OF THE BOARD OF DIRECTORS

"Clive Massey"
Clive H. Massey
President & CEO

For further information, please contact:
info@atomicminerals.ca
(604) 341-6870

Neither TSX Venture Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management's expectations or beliefs regarding future events. Such statements include, but are not limited to: the Company's plans to exercise the Option and acquire a 100% interest in the Property; the Company's belief in the relevance and reliability of the historical estimate; the potential of the Mozzie Lake project; the possibility of converting the historical estimate into a current mineral resource; the Company's intention to advance its uranium exploration projects across North America; the anticipated creation of shareholder value; the potential for future acquisition of the royalty; and the Company's broader exploration objectives and the perceived potential of its properties.

Forward-looking statements are typically identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "may," "will," and similar expressions, or statements that events, conditions, or results "will," "may," "could," or "should" occur or be achieved.

Such forward-looking statements are based on reasonable assumptions made by the Company as of the date of this news release, including assumptions regarding regulatory approvals, exploration and development plans proceeding as expected, and the availability of financing and other resources.

However, forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: the speculative nature of mineral exploration; the accuracy of historical estimates; the Company's ability to obtain TSXV and other regulatory approvals; market conditions; changes in commodity prices; and general economic and political risks in jurisdictions where the Company operates.

Readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/248031

FAQ

What is the historical uranium estimate for Atomic Minerals' (ATOM) Mozzie Lake project?

Historical drilling from 1967-1968 identified an estimate of 208,300 tons grading 0.118% U3O8, equivalent to approximately 491,588 pounds of U3O8.

Where are the newly acquired ATOM mineral claims located?

The claims are located in Saskatchewan's Pinkham Lake Zone, 25km northeast of the Athabasca Basin within the Charlebois-Higgingson Lake Uranium District.

What are the payment terms for Atomic Minerals' Saskatchewan property acquisition?

The company must issue 5,500,000 common shares upon TSXV approval and pay $50,000 in cash within three years from the agreement date.

What is the size of the Saskatchewan mineral claims acquired by Atomic Minerals?

The mineral claims total approximately 5,355 hectares.

What is the royalty structure for Atomic Minerals' new Saskatchewan property?

There is a 3% net smelter return royalty that can be purchased by issuing 5,500,000 shares to the Royalty Holder.