Mr. Greg Cameron reports

TERRA CLEAN ENERGY CORP. ANNOUNCES REVISED AND IMPROVED EARN-IN TERMS AND UPCOMING DRILL PROGRAM AT SOUTH FALCON EAST URANIUM PROJECT

Terra Clean Energy Corp. has negotiated revised and improved earn-in terms on its South Falcon East uranium project, located in Saskatchewan's Athabasca basin. The updated agreement enhances the company's pathway to an ownership interest while maintaining capital efficiency as it advances exploration drilling.

Under the revised terms, Terra has secured more favourable conditions to earn an initial 51-per-cent interest in South Falcon East with the total project consideration to complete the final 75-per-cent earn-in remaining the same. These improvements provide the company with increased flexibility in deploying capital while accelerating the advancement of its uranium projects.

In conjunction with the updated earn-in agreement, Terra is preparing to commence a targeted drill program on the Fraser Lakes B uranium deposit following up on the very encouraging results reported in the winter 2025 program.

Summer 2026 drill program

The company is planning an extensive follow-up drill program for late summer of 2026, consisting of up to 2,500 metres of drilling. The purpose is to test an area highlighted in the winter 2025 program where it is interpreted that a north-northwest-trending brittle structure, a north-dipping structure with strong clay alteration and mineralized pegmatites with hydrothermal hematite alteration hosted in graphitic pelitic gneiss all intersect. This puts many of the indicators identified as being key components for higher-grade uranium mineralization all in the same location.

It is generally accepted that for higher-grade uranium deposits in the Athabasca basin, you require several key indicators:

• Graphitic metasediments;
• Brittle reactivated basement structures;
• Reducing fluid (indicated by clay alteration);
• Oxidizing fluid (indicated by hematite alteration and transports uranium).

All these features have been identified in the Fraser Lakes B summer target area. Where they are projected to intercept is considered a top priority target area for the discovery of a higher-grade unconformity-related basement-hosted uranium deposit and additional mineralized pegmatites.

The coming program will be a helicopter-supported drill program encompassing seven to 10 diamond drill holes targeting an area approximately 120 to 150 metres north of drill holes SF0063, SF0065, SF0066 and SF0067, which were completed during the winter program. The summer field program is anticipated to commence mid- to late August and run for approximately four to five weeks. The campaign will be executed by Terralogic Exploration Inc. under the supervision of its staff and C. Trevor Perkins, vice-president, exploration, for the company. Operations will be based out of a local contracting camp with helicopter support for the daily drilling operations. The expected budget for this program is anticipated to be $1.75-million.

"We are excited to get back in there and test where the clay alteration intersects the mineralized zone and graphitic sediment package," commented Mr. Perkins. "This an exciting target as it can bring together many of the key features associated with the known basement-hosted unconformity deposits in and around the Athabasca basin."

"These improved earn-in terms represent a meaningful step forward for Terra, allowing us to increase our exposure to a highly prospective uranium asset under more favourable conditions," said Greg Cameron, chief executive officer of Terra. "With summer drilling being planned, we are excited to continue unlocking the potential of the South Falcon East uranium project."

Terra remains focused on disciplined exploration and strategic asset growth as it builds a portfolio of high-quality uranium projects in North America.

Under the revised agreement, the outstanding requirements for the company to earn a 51-per-cent interest in South Falcon East are as follows:

1. On execution of the amendment: (a) issuing Skyharbour Resources Ltd. 2.65 million common shares; and (b) making a $100,000 cash payment to Skyharbour;
2. On or before July 31, 2027, incurring an additional $1.4-million in work expenditures on South Falcon East (with $75,000 of such work expenditures to have been incurred on or prior to Oct. 1, 2026);
3. On or before July 31, 2028: (a) incurring an additional $1-million in work expenditures on South Falcon East; (b) issuing Skyharbour $1.77-million in common shares based on the volume-weighted average price calculated on the day of issuance; and (c) making a $1.7-million cash payment to Skyharbour.

Upon having earned a 51-per-cenwt interest in South Falcon East, the company will have the option to earn an additional 24-per-cent interest in South Falcon East (bringing its interest to 75 per cent) by:

1. On or before Jan. 1, 2029, incurring an additional $2.5-million in work expenditures on South Falcon East;
2. On or before Jan. 1, 2030: (a) incurring an additional $3.5-million in work expenditures on South Falcon East; (b) issuing Skyharbour $4.5-million in common shares based on the VWAP calculated on the day of issuance; and (c) make a $2-million cash payment to Skyharbour.

The company also announces an award of 300,000 restricted share units pursuant to its omnibus incentive plan to a consultant of the company. Each RSU entitles the recipient to receive one common share of the company on vesting. The RSUs vest on the date that is one year from the date of grant. The grant of RSUs remains subject to the receipt of all regulatory approvals, including the approval of the Canadian Securities Exchange.

About Terra Clean Energy Corp.

Terra Clean is a Canadian-based uranium exploration and development company. The company is currently developing the South Falcon East uranium project, which holds a 6.96-million-pound inferred uranium resource* within the Fraser Lakes B deposit, located in the Athabasca basin region, Saskatchewan, Canada, as well as past-producing uranium mines in Utah and uranium exploration properties in Wyoming, United States.

Qualified person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101, reviewed and approved on behalf of the company by Mr. Perkins, PGeo, the company's vice-president, exploration, a qualified person as defined by National Instrument 43-101.

* The historical resource is described in the technical report on the South Falcon East property, filed on SEDAR+ on Feb. 9, 2023. The company is not treating the resource as current and has not completed sufficient work to classify the resource as a current mineral resource. While the company is not treating the historical resource as current, it does believe the work conducted is reliable and the information may be of assistance to readers.

We seek Safe Harbor.