AEF Completes Acquisition of the South Woodie Woodie Manganese Project, Pilbara District, Western Australia

• AEF has paid the remaining A$450,000 and issued 6,000,000 AEF shares for a 100% ownership interest in the South Woodie Woodie Manganese Project.
• The Project comprises 517.5km² of tenure in a highly prospective manganese province encompassing multiple high-grade exploration targets grading over 40% Mn and a mineral resource estimate prepared in accordance with NI 43-101.
• A number of key technical milestones have already been achieved to fast-track High-Purity Manganese Sulphate Monohydrate (HPMSM) commercialization, with a focus on US critical mineral supply chains.
• Long-lead time environmental studies and PFS underway.
• Manganese-based chemistries are essential for EVs and energy storage systems and are a key enabler for integrating intermittent renewable energy sources.

Vancouver, British Columbia–(Newsfile Corp. – January 13, 2026) – AE Fuels Corporation (TSXV: AEF) (“AEF” or the “Company“) is pleased to announce that its wholly owned subsidiary, Advanced Energy Fuels, Inc. (“Advanced“) has exercised its Option with Trek Metals Ltd (“Trek“) pursuant to an Option and Acquisition Agreement dated September 9, 2024 (“Option Agreement“). In accordance with the terms of the Option Agreement, Advanced paid A$450,000 in cash, and issued an additional 6,000,000 AEF shares, bringing the total number of shares issued to Trek to 8,000,000. Advanced now has a 100% ownership interest in the South Woodie Woodie Manganese Project (“South Woodie Woodie” or the “Project“)¹.

Gary Lewis, Chief Executive Officer and Director of the Company, said: “Exercising the option and securing 100% 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 de-risk 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. This work will also include progressing our discussions with government and potential supply chain partners.”

South Woodie Woodie comprises a contiguous group of nine mineral exploration licenses covering a total area of 517.5km². The Project hosts the Contact and Contact North manganese deposits and includes a broader suite of high-grade regional prospects with demonstrated exploration potential. Extensive historical drilling has been undertaken at the Project (418 drillholes for 39,920m), resulting in a NI 43-101 inferred mineral resource estimate of 11.3 million tonnes grading 15.0% Mn at a 10.1% Mn cut-off². Grades up to 42.8% Mn were recorded in resource drilling.

Table 1: Combined Contact and Contact North NI 43-101 Inferred Mineral Resource

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In support of the NI 43-101 mineral resource, AEF has also undertaken an initial assessment of mining, processing and infrastructure considerations, to guide ongoing technical work and prioritize key value drivers. AEF continues to advance a staged, fully integrated development plan, targeting the production of High-Purity Manganese Sulphate Monohydrate (HPMSM).

AEF has already completed a structured program of metallurgical testwork to assess beneficiation, leaching and purification pathways, with additional programs currently in progress and planned for 2026, including:

• Pyrometallurgical reduction, leaching and impurity removal on concentrate samples.
• Solvent extraction (SX) and crystallization from purified leach liquor, targeting production of battery-grade HPMSM.
• Engineering studies to advance project definition and support funding decisions.

Manganese Strategy

AEF is building a global battery minerals business focused on delivering high-purity manganese products into North American battery and technology markets. Manganese ranks amongst the highest US net import reliance of any critical mineral and dominates lifecycle-extending battery chemistries, including current and emerging chemistries such as LMFP, LM-R as well as solid-state and sodium-ion batteries. Manganese-based chemistries are essential for electric vehicles (EVs) and energy storage systems (ESS) and are a key enabler for integrating intermittent renewable energy sources such as wind and solar.

With supply chain concentration and geopolitical risk accelerating the push for onshoring, AEF is strongly positioned to become a reliable, competitive supplier to North American battery and technology markets. We look forward to updating investors on project development milestones, supported by integrated technical, commercial and financing workstreams.

Qualified Person

John Levings, BSc FAusIMM., Technical Director, AE Fuels Corporation, is the Qualified Person, as defined by National Instrument 43-101, responsible for the scientific and technical information in this news release. Mr. Levings has reviewed, verified, and approved the scientific and technical information in this news release. Mr. Levings is not independent of the Company for the purposes of NI 43-101.

On behalf of the board of directors of the Company:

Gary Lewis,
CEO and Director

About AE Fuels Corporation

AE Fuels Corporation (AEF) is a battery materials company focused on the extraction and purification of minerals critical for the batteries that power electrification and energy storage. AEF has a multi-asset portfolio strategically located in tier one jurisdictions with manganese projects in the Pilbara Region of Western Australia and fluorspar prospects in New Mexico in the USA. Manganese and fluorspar are essential raw materials to multiple high-growth industries and are designated critical minerals in Australia, US and EU due to their importance to energy security and clean technology supply chains. AEF is advancing development activities aimed at delivering reliable, allied-sourced supply of these materials to reduce US dependence on high-risk or non-aligned jurisdictions.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Cautionary Note Regarding Mineral Resources

This news release uses the terms “mineral resource” and “inferred mineral resources” as defined in accordance with National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards. Inferred mineral resources are considered too speculative geologically to have economic considerations applied that would enable them to be categorized as mineral reserves, and there is no certainty that inferred mineral resources will be converted to measured or indicated categories, or that mineral resources will be converted to mineral reserves. Mineral resources are not mineral reserves and have not demonstrated economic viability.

Forward-Looking Statements

This news release contains certain “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements regarding: the scope, timing and results of the pre-feasibility study and environmental baseline studies; the scope, timing and results of metallurgical testwork and process development; the potential production of High-Purity Manganese Sulphate Monohydrate (HPMSM), including suitability for battery and precursor specifications; exploration activities and exploration results; potential changes to mineral resources; and the Company’s business objectives and strategy. Forward-looking statements are based on management’s expectations, estimates and assumptions as of the date of this news release and are subject to a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: results of exploration, metallurgical and engineering work; assumptions underlying technical and economic studies; commodity price and market volatility; availability of financing on acceptable terms; permitting and environmental approvals; operating and capital cost assumptions; and general economic, market and business conditions. The Company does not undertake to update forward-looking statements except as required by applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking statements.

¹  While the Option over South Woodie Woodie is deemed to have been exercised, AEF is required to sole fund A$2,000,000 in exploration and development expenditures on or before 30th September 2027. Any shortfall in expenditure to be paid in AEF shares or cash.
² The mineral resource estimate is supported by a NI 43-101 technical report dated 15 August 2025, prepared by Lynn Widenbar and Lourdes Valle who are each independent of AEF and “qualified persons” as defined under NI 43-101. The NI 43-101 technical report was filed on SEDAR+ and can be found at www.sedarplus.ca.

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