Mustang Energy Corp. Completes Sampling Program at Surprise Creek Project, Saskatchewan and Provides Update on the Acquisition of the Ford Lake Project

Executive Summary

• Mustang Energy Corp. completed the first phase of field exploration (surface prospecting and rock sampling) on its Surprise Creek Uranium-Copper Project, with results expected to inform future drill targeting.
• The Company finalized the acquisition of the Ford Lake Project by issuing 1,500,000 common shares to Stallion Uranium Corp., marking the final payment under the purchase agreement.
• The Company granted 5,600,000 stock options to directors, officers, and consultants, and received regulatory approval for a work permit to conduct exploration, including drilling, at the Surprise Creek Fault prospect.

Key Details

• Surprise Creek Exploration Update:
  • Completed surface prospecting and detailed rock sampling at nine locations of interest.
  • Collected structural data from the Surprise Creek Fault area to understand mineralization controls.
  • Work permit application for exploration, including drilling at the Surprise Creek Fault prospect, has been approved by the Saskatchewan Government.
• Surprise Creek Project Historical Data & Targets:
  • Located 25 km northwest of the Beaverlodge Uranium District (near historical Gunnar and Eldorado mines).
  • A major high-resolution airborne survey (Sept 2024) identified multiple new uranium targets.
  • Uranium Targets: A strong radiometric anomaly identified at the Surprise Creek Fault drill target. Historical drilling returned up to 2.1m of 4.37% U3O8 from 57m. Surface sampling returned assays up to 7.98% U3O8. Surface mineralization extends over a strike length of up to 500m.
  • Copper Targets: Historical prospects include Bob Lake, Ellis Bay, and Waterloo South.
    • Bob Lake historical drilling: 9.1m @ 2.07% Cu and 27.3g/t Ag from surface.
    • Ellis Bay historical drilling: 6.6m @ 1.31% Cu from 11m.
    • Rock chip sampling (2022-2023) returned assays up to 61.7% Cu, 27.6% Cu, and 9% Cu.
• Ford Lake Project Acquisition Completion:
  • Issued 1,500,000 common shares to Stallion Uranium Corp. as consideration for the final installment of the purchase price.
  • Transaction governed by the Purchase and Sale Agreement dated Feb 12, 2024, as amended Aug 8, 2025.
  • Consideration shares are subject to a statutory hold period expiring four months and one day from issuance.
• Stock Option Grants:
  • Granted 5,500,000 incentive stock options to directors, officers, and consultants under the Omnibus Equity Incentive Plan.
    • Exercise Price: $0.10 per share.
    • Expiry: August 20, 2028 (3-year term).
    • Vesting: Immediate.
  • Granted 100,000 stock options to a consultant.
    • Exercise Price: $0.12 per share.
    • Expiry: August 22, 2028 (3-year term).
    • Vesting: Immediate.
  • All options and underlying shares are subject to a hold period of four months and one day from issuance.

Notable Quotes

• No direct quotes from the CEO or President were included in the text of this release.