Mr. Lester Esteban reports

TRACTION URANIUM ANNOUNCES COMPLETION OF TECHNICAL REPORT ON KEY LAKE SOUTH PROJECT

Further to its press release dated May 17, 2023, Traction Uranium Corp. has noted that Aurora Geosciences Ltd. has completed a technical report in respect of the Key Lake South (KLS) property pursuant to National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Drilling

The 2023 program was composed solely of a 1,838-metre diamond drilling program in 12 holes, covering numerous widely spaced targets in the northeastern area of the property. At each hole, a downhole gamma ray survey was performed to test for gamma radiation, including readings through overburden, to test for glacially transported or other surficial radioactive material.

Summary of the technical report:

• The majority of anomalous thorium (Th) intercepts are associated with rare earth elements (REEs), locally returning strongly anomalous values.
• Many of these intercepts are pegmatite-hosted, although amphibolite and structurally hosted intercepts also occur.
• The northwestern property area, including hole KLS23-007, is the most favourable area for uranium (U) and REE mineralization.
• The area around KLS23-007 is along trend of the structural feature underlying the Key Lake deposits to the northeast, extending to anomalous Th-REE mineralization drilled in 2008 to the southwest.
• Hole KLS23-008, collared southwest of KLS-007, pierced the contact of Upper Wollaston group orthogneiss with underlying Lower Wollaston group metapelites. A short interval of anomalous thorium-REE values occurs directly below the contact.
• Anomalous Th-REE values from the 2008 drilling are hosted by pegmatites within metapelites.
• Uranium and Th-REE mineralization may provide an alternative exploration target at Key Lake South.

Recommendations of the technical report:

• Phase 1 surface soil geochemical program is recommended to test for overburden-hosted mineralization identified from downhole gamma ray probe testing of KLS23-007. The objective will include testing its lateral surface extent up-ice from the drill collar.
• This program should be combined with further geological mapping in areas of bedrock or rubble-crop exposure.

About the property

The KLS property is located approximately six kilometres to the southwest of the Key Lake uranium mill, and in close vicinity to modern uranium mining facilities and all-weather highway transportation in Northern Saskatchewan. Geologically, it sits at the southeastern edge of the Proterozoic Athabasca basin. Recent discoveries of the Triple R and Arrow deposits have demonstrated further potential for high-grade uranium prospects along the edge of the basin.

Geological setting

The Key Lake property is located along the southeast margin of the Athabasca basin within the Hearne province of the Canadian Shield. In the Key Lake area, Hearne province basement rocks include the Wollaston domain, composed of the lower and upper Wollaston groups. The lower Wollaston group, which underlies the Key Lake mine, comprises mainly metasedimentary gneisses (metapelites), whereas the upper Wollaston group comprises mainly metamorphosed granitic orthogneiss, pegmatites and lesser basaltic rocks (amphibolite). The basement rocks are overlain by younger Athabasca basin rocks, comprising a sequence of sandstone up to 1,500 metres thick. The southern margin of the basin occurs between the Key Lake mine and the Key Lake South property.

The Key Lake mine is located along the district-scale Key Lake fault, which extends southwest onto, and extending throughout, the KLS property. Faults such as this may have provided the structural preparation for subsequent fluid movement, leading to basement-hosted uranium deposition. At the Key Lake South property, the Key Lake fault separates metasedimentary rocks to the northwest from metagranitic rocks to the southeast.

In the Key Lake South area, the prospective deposit setting is basement-hosted uranium, as there are no overlying Athabasca group sandstones. Basement-hosted uranium deposits in the Athabasca area include the Rabbit Lake, Eagle Point, Millenium and P-Patch deposits, the latter occurring six km east of the Key Lake mine. In this setting, mineralization occurs along zones of structural preparation, such as brittle fault zones, associated with hematization, bleaching, strongly developed epidote and chlorite alteration, and local silicification.

About Traction Uranium Corp.

Traction Uranium is in the business of mineral exploration and the development of uranium discovery prospects in Canada, including its three uranium projects in the world-renowned Athabasca region.

Qualified person

The technical content of this news release has been reviewed and approved by Ken Wheatley, MSc, PGeo, who is a qualified person as defined by National Instrument 43-101, and a consultant of the company.

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