American Atomics Signs Option Agreement with Big Indian Prospectors LLC

Executive Summary

• American Atomics Inc. entered into a definitive option and earn‑in agreement with Big Indian Prospectors LLC to acquire up to an 80% interest in uranium mineral claims in the Lisbon Valley Mining District, Utah.
• The company made an initial cash payment of USD $130,000 and issued 3,000,000 common share purchase warrants (exercise price $0.50, five‑year term) to the vendor.
• The agreement provides a staged acquisition over five years, enabling American Atomics to control exploration on 217 lode claims covering the under‑explored eastern flank of the historic uranium belt.

Key Details

• Option Structure: Up to 80% right, title and interest in the Property; earned in five stages over five years.
• Consideration Paid at Execution:
• Cash payment: USD $130,000.
• Warrants issued: 3,000,000 warrants, $0.50 exercise price, 5‑year term, subject to vesting provisions (as previously disclosed).
• Property Description:
• Located in the Lisbon Valley Mining District, southeastern Utah – a salt‑anticline hosted uranium system with ~78 million lbs U₃O₈ historic production at ~0.37% average grade.
• Consists of 217 lode mining claims covering the majority of the eastern side of the anticline (historically under‑explored).
• Geologic Highlights:
• Historic production on western flank; eastern flank shows gamma‑log anomalies in 28 of 51 oil/gas wells, depths 2,200–2,800 ft.
• Target horizons: Moss Back Member (Chinle Formation) and upper Cutler Formation.
• Operational Plans:
• American Atomics will act as operator with day‑to‑day control over exploration programs, contractors, and budgets.
• Company intends to apply for drilling permits and commence a summer drill program.
• Management Comments:
• CEO David Mitchell: “We are very pleased to have executed our Definitive Option Agreement… we will now move forward with applying for our drilling permits with the expectation of a summer drill program.”
• Vendor Relationship: Big Indian Prospectors LLC is an arm’s‑length party, led by Mark Steen (son of historic prospector Charlie A. Steen).

Notable Quotes

“We are very pleased to have executed our Definitive Option Agreement with Big Indian Prospectors LLC and look forward to working closely with them to explore this exciting uranium prospect.” – David Mitchell, CEO

The release contains forward‑looking statements regarding drilling plans and potential mineralization; actual results may differ.