AE Fuels exercises South Woodie Woodie option with Trek

Executive Summary

• AE Fuels Corp. completed the acquisition of 100% ownership of the South Woodie Woodie manganese project in Western Australia through its wholly owned subsidiary, Advanced Energy Fuels Inc.
• The acquisition was finalized by paying $450,000 AUD in cash and issuing 6 million AE Fuels shares (bringing total shares issued to Trek Metals to 8 million).
• The project hosts an NI 43-101 inferred resource of 11.3 million tonnes grading 15.0% Mn, with AE Fuels targeting a Preliminary Feasibility Study (PFS) and commercial production of battery-grade manganese sulphate by 2026.

Key Details

• Transaction Structure: Advanced Energy Fuels Inc. exercised an option with Trek Metals Ltd. pursuant to an option and acquisition agreement dated Sept. 9, 2024.
• Consideration: $450,000 AUD in cash plus issuance of 6 million AE Fuels shares (total shares issued to Trek Metals: 8 million).
• Ownership Interest: 100% ownership of the South Woodie Woodie manganese project.
• Project Footprint: 517.5 square kilometres comprising nine contiguous mineral exploration licences in the Pilbara District.
• Mineral Resource: NI 43-101 inferred resource of 11.3 million tonnes grading 15.0% Mn at a 10.1% Mn cut-off; historical drilling comprises 418 holes for 39,920 metres with grades up to 42.8% Mn.
• Development Roadmap: Targeting production of high-purity manganese sulphate monohydrate (HPMSM); 2026 priorities include advancing the PFS, completing environmental baseline studies, finishing next-stage metallurgical testwork, and progressing toward commercialization.
• Metallurgical Programs: Structured testwork underway/planned covering pyrometallurgical reduction, leaching, and impurity removal on concentrate; solvent extraction and crystallization from purified leach liquor targeting battery-grade HPMSM; and engineering studies to support project definition and financing.
• Strategic Context: Company is building a global battery mineral business focused on supplying high-purity manganese to North American markets, targeting LMFP, LM-R, solid-state, and sodium-ion battery chemistries to address U.S. net import reliance and mitigate supply chain geopolitical risks.

Notable Quotes

• Gary Lewis, CEO: "Exercising the option and securing 100-per-cent ownership of South Woodie Woodie is a key step for AEF. We now have a defined resource base and a clear pipeline of technical work to derisk the project from beneficiation through to purification and HPMSM crystallization. In 2026, our priorities are to progress the PFS and environmental baseline studies, complete the next stages of metallurgical testwork, and advance the project toward commercialization and production of battery-grade manganese products."