Aero Energy and Fortune Bay Hit Strong Radioactivity in Shallow New Discovery at the Murmac Uranium Project, Saskatchewan

Jun 25, 2024

Vancouver, British Columbia – June 25, 2024 – Aero Energy Ltd (TSXV: AERO) (OTC Pink: AAUGF) (FSE: UU3) (“Aero” or the “Company”) is pleased to announce the intersection of strong radioactivity in the second drill hole (M24-017) of its 2024 exploration drilling program on the Murmac Uranium Project (“Murmac” or the “Project”), located in Northern Saskatchewan. An average of 1,309 counts per second was intersected over 8.7 metres in graphitic pelite, with up to 33,600 counts per second (using handheld RS-125 Spectrometer) associated with visible uranium mineralization. The drilling program is being funded by the Company and is operated by Fortune Bay Corp (TSXV: FOR) (OTCQB: FTBYF) (FSE: 5QN) (“Fortune Bay”).

Highlights:

  • Drilling is still underway on hole M24-017 (target H15); drill core has been received and logged to a depth of 94.5 metres at the time of this release.
  • Strong radioactivity is dominantly hosted in structured graphitic pelite, immediately below the contact with hematized quartzite (hangingwall), approximately 70 to 78 metres vertically below surface.
  • Radioactivity highlights include a maximum of 33,600 counts per second over 0.1 metre (from 86.1 to 86.2 metres), with a length weighted average of 1,309 counts per second over 8.7 metres (from 85.8 to 94.5 metres).
  • Drilling is ongoing and the zone of strong radioactivity remains open up/down dip and along strike in both directions.
  • This is the first drill hole testing a previously unexplored electromagnetic (“EM”) conductor on the Howland Corridor under the shallow Howland Lake.
  • The Company is currently planning appropriate follow-up holes.
  • There are an additional 11 high-priority targets at Murmac which have been approved for drilling, and multiple others under consideration.

Galen McNamara, CEO of Aero Energy, stated, “The discovery of strong radioactivity in only the second hole ever drilled by the Company confirms our exploration thesis, underscores the prospectivity of the search-space, and opens up many interesting discovery possibilities. The occurrence of strong alteration and radioactivity within both the quartzite hangingwall and targeted graphitic pelite units provides early indications that this mineralized system looks to be robust. We look forward to unlocking additional value with our partners at Fortune Bay as we aggressively pursue further uranium mineralization at Murmac.”

Target Information

Hole M24-017 was collared to test an EM conductor on the Howland Corridor at the intersection of a cross-cutting fault with numerous historical uranium occurrences and radioactive showings. The geophysical characteristics of target H15 manifests as a subtle electromagnetic (“EM”) high with a subtle coincident gravity low. The interpreted EM conductor is approximately 1.2 kilometres in length, with approximately 1 kilometre (not previously drill tested) sub-cropping beneath the narrow Howland Lake, and is not exposed at surface.

Radioactivity Results

The preliminary results, representing total gamma from NQ2 drill core measured with a Super-SPEC RS-125 handheld spectrometer reported in counts per second (“cps”), are presented in Table 1 below. Measurements are typically collected over 0.10 to 0.15 m intervals through areas of anomalous radioactivity (defined as >300 counts per second, or “cps”). Longer intervals with less variation are shown as length weighted averages for simplicity.

Intermittent radioactivity is present in the hangingwall quartzite between 81.10 and 85.80 metres down hole. The targeted graphitic unit which predominantly hosts the strong radioactivity is currently interpreted to be dipping at approximately 70° towards the southeast. Drill hole M24-017 is oriented towards an azimuth of 310° (True North) with a dip of -55°. The nature and orientation of any possible mineralization has not yet been constrained, and potential mineralization true thicknesses have not yet been determined. Radioactive intercepts are shown in Figure 2. High resolution photographs of the most anomalous intercepts are shown in Figures 3, 4 and 5.

Table 1. Radioactivity intersections logged to date in hole M24-017.

Note: Radioactivity values reported are total gamma from NQ2 drill core measured with a Super-SPEC RS-125 handheld spectrometer reported in counts per second (“cps”). The cps values are averages for the reported drill interval. Measurements of total gamma cps are an indication of the presence of uranium, thorium and/or potassium, but may not directly correlate with chemical uranium assays. Total gamma cps results are preliminary in nature and may not be used directly to quantify uranium concentrations in the drill core samples. True thicknesses of the drill core intersections are yet to be determined.

Next Steps

Drill core samples are being collected systematically throughout any zones with radioactivity higher than 300 cps. All samples will be submitted to SRC Geoanalytical Laboratories in Saskatoon for U₃O₈ assay and multi-element characterization.

The Company is currently assessing options to follow-up and step out from this zone of strong radioactivity. Follow-up is expected to include down-dip and along-strike testing (in both directions) of the host graphitic unit. Initial follow-up will be carried out as a priority and will begin on completion of the current hole.

About the Murmac Project

Murmac, situated between the historical Gunnar and Lorado Uranium Mines, has shown significant promise. Historical exploration (1960-1980) revealed numerous high-grade uranium occurrences, though these were not systematically explored for basement-hosted mineralization typical of the Athabasca Basin. A 2022 drilling program by Fortune Bay confirmed the potential for high-grade uranium with significant findings in several drill holes, validating the exploration model.

Figure 1: Murmac 2024 Drill Targets
Figure 2: Radioactivity intersections (81.00 to 94.50 metres down hole). Hangingwall quartzite hosts intermittent radioactivity from 81.00 to 85.80 m. Continuous elevated radioactivity is hosted in the underlying graphitic pelite. Core is NQ2 diameter, core box length is 1.50 m.
Figure 3: High resolution photograph of selected radioactive intersection from 86.1 to 86.2m
Figure 4: High resolution photograph of selected radioactive intersection from 86.2 to 86.3 m
Figure 5: High resolution photograph of selected radioactive intersection from 92.1 to 92.2 m

Qualified Person

The technical content of this news release has been reviewed and approved by Galen McNamara, P. Geo., CEO of the Company and a qualified person as defined by National Instrument 43-101.

Historical Results

Further details regarding the historical uranium occurrences noted in this news release can be found within the Saskatchewan Mineral Assessment Database (SMAD) and the Saskatchewan Mineral Deposit Index (SMDI). Fortune Bay has verified the majority of these occurrences through field prospecting and sampling, however there is a risk that any future confirmation work and exploration may produce results that substantially differ from the unverified historical results. The Company considers these unverified historical results relevant to assess the mineralization and economic potential of the property. The historical drill results obtained by SMDC in drill holes CKI-9 and CKI-10 can be found within the SMAD references 74N07-0310 and 74N07-0311 and have not been verified. Additional historical exploration results (uranium occurrences related to geochemistry results and scintillometer prospecting) derive from SMAD references 74N07-0290, 74N07-0287 and 74N07-0304.

About Aero Energy Limited

Aero Energy is a mineral exploration and development company advancing a district-scale 250,000-acre land package in the historic Uranium City district within Saskatchewan’s Athabasca Basin. Aero Energy is focused on uncovering high-grade uranium deposits across its flagship optioned properties – Sun Dog, Strike, and Murmac – in addition to its fully owned properties. With the application of modern exploration techniques, the Company has identified over 50 shallow drill-ready targets and 125 kilometres of target horizon on the frontier north rim of the Athabasca Basin. Aero Energy is tapping into the Athabasca Basin’s emerging potential for high-grade, unconformity-style mineralization.

On Behalf of the Board of Directors

Galen McNamara, Interim Chief Executive Officer

Further information on the Company can be found on the Company’s website at aeroenergy.ca and at www.sedarplus.ca, or by contacting the Company by email at info@aeroenergy.ca.

Cautionary Statement Regarding Forward-Looking Information

Neither the TSX Venture Exchange nor its 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.

This news release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. These forward‐looking statements or information relate to, among other things the exploration and development of the Company’s mineral exploration projects including completion of drilling activities.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the requirement for regulatory approvals; enhanced uncertainty in global financial markets as a result of the public health crises; unquantifiable risks related to government actions and interventions; stock market volatility; regulatory restrictions; and other related risks and uncertainties.

Forward-looking information are based on management of the parties’ reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect.

The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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