Mr. Duane Parnham reports

CRITICAL ONE ENERGY PROVIDES UPDATE ON KENORA PROPERTY AND CLAIM AGAINST AMERICAN ATOMICS INC.

Critical One Energy Inc. wishes to provide an update on its Kenora property in Northwestern Ontario following the termination by American Atomics Inc. of a mineral property option agreement. The company retains a 100-per-cent 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, news release), as amended May 3, 2024 (see news release dated May 9, 2024). 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-per-cent 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-per-cent 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 restaked 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 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 can be found on its website and on its profile on SEDAR+.

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