AE Fuels Defines 44 Drill Targets to Test Manganese Resource Expansion Potential Beyond Existing South Woodie Woodie Resource

AE Fuels Corporation (AEF) has completed a high-resolution gravity survey at the Pearana and Pothole prospects within its South Woodie Woodie Manganese Project in Western Australia. The survey identified multiple discrete gravity anomalies, defining 44 Priority 1 drill targets to test for concealed manganese mineralization outside the existing Inferred Mineral Resource.

A preliminary reverse circulation (RC) drill program is planned, comprising 44 holes totaling 3,280 meters (31 holes at Pearana, 13 at Pothole), pending final collar verification and heritage/access approvals.

The TSX Venture Exchange granted conditional acceptance for a previously announced unsecured convertible loan financing of $250,000. The loan carries a 5% annual interest rate, a one-year term, and converts into up to 1,470,588 common shares at $0.17 per share. Lenders are CEO Gary Lewis and >10% shareholder John Wardman. Proceeds are designated for exploration on the Fluorite Ridge fluorspar project in New Mexico.

Conversion rights are now effective.

AE Fuels Corporation (AEF) released an exploration update that serves as a direct follow-up to the gravity survey announced in May 2026. Defining drill targets represents a standard procedural step in the exploration lifecycle and does not constitute a material surprise.

The company also announced a $250,000 convertible loan, a minor financing event backed by insiders. This funding provides short-term working capital for the New Mexico project but does not materially alter the company's capital structure or near-term liquidity position.

The news aligns with previous management guidance and the company's stated 2026 development roadmap. The update reflects routine project advancement rather than a fundamental shift in valuation drivers.

AE Fuels Corporation (formerly Cavalry Capital) is a critical minerals exploration company focused on two primary assets. The South Woodie Woodie Manganese Project in Western Australia hosts an NI 43-101 Inferred Mineral Resource of 11.3 million tonnes at 15.0% Mn. The company is targeting battery-grade High-Purity Manganese Sulphate Monohydrate (HPMSM) and has successfully demonstrated 95-99% manganese recovery and continuous HPMSM crystallization in mini-pilot testing with CSIRO.

The Fluorite Ridge Fluorspar Project in New Mexico, USA, is a 100%-owned, 85-claim land package comprising approximately 1,756 acres. This package consolidates historic mines including Sadler, Greenleaf, and Lucky. The company is conducting district-scale brownfield exploration to evaluate the area as a domestic US fluorspar supply source.

The company is currently in the pre-feasibility and exploration stage, with a pre-feasibility study (PFS) targeted for 2027.