Aero Energy Completes Acquisition of Kraken Energy to Create a Premier North American Uranium Developer

Vancouver, British Columbia--(Newsfile Corp. - June 23, 2025) - Aero Energy Limited  (TSXV: AERO) (OTC Pink: AAUGF) (FSE: UU3) ("Aero") and Kraken Energy Corp. (CSE: UUSA) (OTC Pink: UUSAF) (FSE: F2C) ("Kraken") are pleased to announce, further to their press release dated April 2, 2025, the completion of the plan of arrangement under the Canada Business Corporations Act (the "Arrangement"), whereby Aero acquired all of the issued and outstanding common shares of Kraken (the "Kraken Shares") pursuant to the arrangement agreement dated April 1, 2025 between Aero and Kraken.

Galen McNamara, CEO and Director of Aero, stated: "We're proud to merge with Kraken and create a leading uranium explorer that delivers substantial value to shareholders of both companies. By uniting Aero's Athabasca Basin strengths with Kraken's U.S. assets, we're positioned to unlock permits, scale effectively, and capture the uranium market's momentum with certainty."

Brian Goss, former CEO of Kraken and incoming Director of Aero, stated: "We welcome this merger with Aero as a decisive step to deliver strong returns for shareholders of both companies. Aero's exploration strength and capital expertise bolster our U.S. assets, notably the Apex Property. Our recent permitting efforts at Apex have demonstrated our ability to work with the USFS to get to drilling in the near future. This transaction will clear the path through permitting to capitalize on the uranium market's growth with proven resolve."

On June 17, 2025, the Supreme Court of British Columbia issued the final order to approve the Arrangement. The Arrangement received the requisite approval of the shareholders of Kraken (the "Kraken Shareholders") at the annual general and special meeting of Kraken Shareholders held on June 11, 2025.

Pursuant to the terms of the Arrangement Agreement, all of the issued and outstanding Kraken Shares were exchanged for an aggregate of 57,922,329 common shares of Aero (the "Aero Shares") on the basis of 0.97037 Aero Shares for each Kraken Share (the "Exchange Ratio"). Immediately following the completion of the Arrangement, there are 179,849,606 Aero Shares issued and outstanding, on an undiluted basis, of which approximately 67.79% are held by the shareholders of Aero immediately prior to the completion of the Arrangement and approximately 32.21% are held by the former Kraken Shareholders.