Critical One Energy Provides Update on Kenora Property and Claim Against American Atomics Inc.

Rhea-AI Summary

Critical One Energy (OTCQB: MMTLF) provided an update on its Kenora Property in northwestern Ontario after the termination of a mineral property option agreement with American Atomics. Critical One retains a 100% interest in the Kenora Property, as American Atomics did not earn any interest before ending the option on May 3, 2026.

The company reports that unpatented mining claim 531620, previously part of the property, lapsed while the option was in place and has since been staked and registered by an unrelated third party, and is no longer available to be re-staked or transferred back. Critical One also notes that American Atomics staked ten unpatented mining claims within the area of common interest defined in the option agreement, and under that agreement Critical One is entitled, after termination, to request the transfer of those claims to the company or its designee at no additional consideration.

Positive

• 100% retained interest in Kenora Property after option termination
• Potential acquisition rights over 10 unpatented mining claims in area of common interest

Negative

• Loss of unpatented mining claim 531620, now held by an unrelated third party and not recoverable

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Toronto, Ontario--(Newsfile Corp. - August 12, 2026) - Critical One Energy Inc. (CSE: CRTL) (OTCQB: MMTLF) (FSE: 4EF) ("Critical One" or the "Company") wishes to provide an update on its Kenora Property in northwestern Ontario (the "Property") following the termination by American Atomics Inc. ("American Atomics") (CSE: NUKE) of a mineral property option agreement. The Company retains a 100% interest in the Property and has delivered a written demand to American Atomics to return all geological information and financial backup pertaining to the Property and for compensation with respect to breach of the option agreement.

Background

The Property, held through the Company's wholly-owned subsidiary 2160083 Ontario Inc., was the subject of a mineral property option agreement dated May 5, 2023 (see May 17, 2023 press release), as amended May 3, 2024 (see press release, dated May 9, 2024) (the "Option Agreement"). During these prior transactions, the Company was known as Madison Metals Inc., while American Atomics was known as Great Northern Energy Metals Inc.

Under the Option Agreement, American Atomics was granted an option to earn a 60% interest in the property by performing exploration activities and minimum expenditures, which American Atomics terminated by notice effective May 3, 2026 without having earned any interest, leaving the Company with a 100% interest in the property. Following the termination of the Option Agreement, the Company determined that unpatented mining claim 531620, forming part of the property, was allowed to lapse while the property was under the control of American Atomics as a direct result of the failure of American Atomics to perform the required assessment work, and that the claim has since been staked and registered by an unrelated third party and is no longer capable of being re-staked or transferred to the Company. On June 23, 2026, the Company delivered a written demand to American Atomics for damages for the loss of the claims, which the Company considers having resulted from a breach by American Atomics of its obligation under the Option Agreement. The Company has also requested certain information from American Atomics relating to exploration work apparently performed on the claims to confirm compliance with the Option Agreement.

The Company will be seeking damages and using all legal means to be made whole from American Atomics' default.

Additionally, American Atomics has advised the Company that it staked ten unpatented mining claims located within the area of common interest established under the Option Agreement. Pursuant to the Option Agreement, following termination, the Company is entitled to demand that those claims be transferred to it or its designee free of encumbrances and for no further consideration. The Company intends to enforce its entitlement under the Option Agreement, including by court application if necessary.

The Company has reserved all its rights and remedies under the Option Agreement and at law.

About Critical One Energy Inc.

Critical One Energy Inc. is a Canadian critical minerals and upstream energy company focused on metals essential to energy, technology and national defence supply chains. The Company is advancing the Howells Lake Antimony-Gold Project, which provides Critical One with direct exposure to antimony, a critical metal of increasing strategic importance to Western nations, as well as meaningful gold exploration potential across the property. Backed by seasoned management expertise, Critical One is positioned to advance high-value mineral projects aligned with the rising demand for secure critical minerals supply. The Company also holds uranium and copper assets in Namibia, providing additional exposure to critical minerals and energy metals.

Additional information about Critical One Energy Inc. can be found at criticaloneenergy.com and on the Company's SEDAR+ profile at www.sedarplus.ca.

For further information, please contact:

Duane Parnham
Executive Chairman & CEO
Critical One Energy Inc.
+1 (416) 489-0092
ir@criticaloneenergy.com

Media inquiries:

Adam Bello
Manager, Media & Analyst Relations
Primoris Group Inc.
+1 (416) 489-0092
media@primorisgroup.com

Neither the Canadian Securities Exchange nor CIRO accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Forward-looking information contained in this news release includes, but is not limited to, statements relating to the Company's assertion that American Atomics is liable to the Company under the Option Agreement, the results of the Company's continuing review of the claim records for the Property, the anticipated quantum of the Company's damages, the Company's entitlement to and the anticipated transfer of claims staked within the area of common interest, the prospects for a negotiated resolution of the matter and the terms of any such resolution, the commencement of any legal proceedings, and the timing and amount of any recovery by the Company.

Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that: the Company's interpretation of the Option Agreement, as amended, and of the claim records for the Property is correct; that the loss of the claim is attributable to the conduct of American Atomics; that the surviving liability provisions of the Option Agreement are enforceable against American Atomics in the manner asserted by the Company; that any claims staked within the area of common interest are held by American Atomics free of encumbrances and are capable of being transferred to the Company; and that American Atomics has, and will continue to have, the financial capacity to satisfy any amount that may ultimately be agreed or awarded.

However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such risks include, but are not limited to, the risk that American Atomics disputes the Company's claim in whole or in part, as it has to date; that the Company is unable to establish liability or to quantify or prove its damages; that the damages ultimately established are materially less than the amount demanded by the Company; that any negotiated resolution is not concluded, or is concluded on terms materially different from those currently proposed; that any resolution involving the issuance of securities is not completed or is not approved by the applicable securities regulatory authorities or stock exchanges; that any transfer of claims within the area of common interest is delayed, disputed or not completed; that the Company incurs material legal costs in pursuing the claim; that any amount awarded is not collectible; and that the Company ultimately recovers no amount in respect of the claim.

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. The Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309374

FAQ

What did Critical One Energy (OTCQB: MMTLF) announce about its Kenora Property on August 12, 2026?

Critical One Energy announced it retains a 100% interest in the Kenora Property after an option agreement with American Atomics ended. The company also outlined the loss of one lapsed claim and rights related to ten additional unpatented mining claims.

Does Critical One Energy still own 100% of the Kenora Property after American Atomics terminated the option?

Yes, Critical One Energy retains a 100% interest in the Kenora Property because American Atomics did not earn any interest before terminating the option on May 3, 2026. According to the company, all remaining claims in the property are held through its subsidiary.

What happened to mining claim 531620 in Critical One Energy’s Kenora Property?

Mining claim 531620 lapsed while the option agreement was in place and was later staked and registered by an unrelated third party. According to Critical One Energy, this claim is no longer capable of being re-staked or transferred back to the company.

What are the ten unpatented mining claims staked by American Atomics mentioned by Critical One Energy (MMTLF)?

American Atomics advised Critical One Energy that it staked ten unpatented mining claims within the option agreement’s area of common interest. Under that agreement, Critical One states it can demand transfer of these claims after termination, free of encumbrances and at no further cost.

How does the terminated option agreement affect Critical One Energy’s future plans for the Kenora Property?

The terminated option leaves Critical One Energy with full ownership of the Kenora Property but without claim 531620. According to the company, it also has contractual rights to request transfer of ten nearby unpatented claims, which could influence future exploration planning.

What other projects does Critical One Energy (OTCQB: MMTLF) operate besides the Kenora Property?

Critical One Energy focuses on critical minerals and upstream energy, led by the Howells Lake Antimony-Gold Project. According to the company, it also holds uranium and copper assets in Namibia, giving additional exposure to critical minerals and energy metals.