American Future Fuel Corporation announced the New Mexico Mining and Minerals Division has issued the Company its first drilling permit (the ?permit?) at its 100% owned flagship Cebolleta Uranium Project (?Cebolleta? or the ?Project?) located in the Grants Uranium Mineral Belt, 35 miles (56km) west of Albuquerque, New Mexico. Cebolleta is an advanced uranium exploration project with a historical uranium Inferred Mineral Resource of 5.6M tons (5.1M tonnes) at an average grade of 0.17% eU3O8 containing 18.98M lbs (8,600 tonnes) U3O8 according to a 2014 NI 43-101 Technical Report commissioned by previous owner, Uranium Resources Inc.¹ The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current Mineral Resource and the Company is not treating the historical estimate as a current Mineral Resource.

To prepare a current resource estimate, the Company has planned three phases of drilling to confirm historical drilling data. This first permit comprises Phase 1 and allows for 22 holes to be drilled in Area I of the Project, targeting several generations of historical drilling that identified seven shallow mineralized horizons. The Company has entered a contract with Stewart Brothers Drilling Co. of Grants, New Mexico to complete Phase 1 and drilling is scheduled to begin in August 2023.

Planning is underway for Phases 2 and 3 drilling permits. Phase 2 is anticipated to allow 20 to 30 confirmation holes in Area III of the Project. The Company anticipates starting Phase 2 drilling during the fourth quarter of 2023 or first quarter of 2024, pending receipt of a second permit.

Phase 3 is anticipated to be in-fill drilling as needed, pending results of Phase 1 and Phase 2 drilling, and is anticipated to begin mid- to late-2024. OVERVIEW OF THE CEBOLLETA URANIUM PROJECT: Cebolleta is an advanced uranium exploration project located in Cibola County, New Mexico. The Project is approximately 35 miles (56 km) west of Albuquerque and lies within the prolific Grants Uranium Mineral Belt, one of the largest concentrations of sandstone-hosted uranium deposits in the world.

The Grants Uranium Mineral Belt has historically produced 347M lbs U3O8, or ~37% of all Uranium produced in the United States. American Future Fuel has a 100% lease-hold interest in Cebolleta (6,700 acres mineral rights, 5,700 acres surface rights), which is comprised of multiple known uranium deposits and several previously operating uranium mines. KNOWN DEPOSITS AT CEBOLLETA URANIUM PROJECT: Cebolleta has been subject to extensive exploration and development from the 1950s through 1980s.

Past efforts revealed several significant sandstone-hosted uranium deposits ranging from 200 to 800 feet (60-240m) deep in the Jurassic Jackpile Sandstone. These deposits were amenable to both surface and underground mining, which culminated from 1975-1981 when over 3.8M lbs U3O8 was produced from the JJ#1 and St. Anthony Mines.

The vast majority of known uranium mineralization still exists at Cebolleta ? namely from the Sohio Area (mineralization in Areas I-V) and the St. Anthony Area (mineralization surrounding the St.

Anthony Pit North, St. Anthony Pit South and Willie P Mines). The Sohio Area of the Project is host to a historical uranium Inferred Mineral Resource of 5.6M tons (5.1M tonnes) at an average grade of 0.17% eU3O8 containing 18.98M lbs (8,600 tonnes) U3O8 according to a 2014 Technical Report commissioned by previous owner, Uranium Resources Inc.4 The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current Mineral Resource and the Company is not treating the historical estimate as a current Mineral Resource.

The Company possesses a large database of maps and drilling logs detailing over 3,500 drill holes completed at the Project by past owners/operators. This database was the basis for the historical estimate as well as the Company?s ongoing confirmation drilling. The St.

Anthony deposits, in and surrounding the St. Anthony open pits, have not been modeled, as the large amount of historical data for St. Anthony has not yet been synthesized into a useable database for resource estimation.

The Company believes the St. Anthony Area mineralization represents significant resource expansion potential for the Project.