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AERO Energy Announces Definitive Agreement to Sell Chilean GOLD Projects

Mergers & Acquisitions

AERO ENERGY ANNOUNCES DEFINITIVE AGREEMENT TO SELL CHILEAN GOLD

PROJECTS

VANCOUVER, BC, December 9, 2025 – Aero Energy Limited (TSXV: AERO) (OTC Pink: AAUGF) (FSE:

UU3) (“Aero” or the “Company”) is pleased to announce that it has entered into an agreement dated

December 9, 2025 to sell 100% of the issued and outstanding shares of RIO Explorations SpA (the “RIO

Shares”) (which directly holds the Dorado and Cordillera gold projects in Chile’s Atacama Region) to Batik

Resources Ltd. (“Batik”). Total consideration for the transaction is $3,600,000, payable as follows:

• $700,000 in cash payable on closing (expected to occur on or about December 17, 2025 ) less

customary Chilean withholding taxes which are expected to be recoverable; and

• $2,900,000 in common shares of Batik, to be issued upon listing of Batik’s common shares on a

recognized stock exchange (the “Public Listing”) at a price equal to the listing price or concurrent

financing price.

Batik is required to complete the Public Listing by no later than October 31, 2026 (the “Listing Deadline”).

If Batik fails to achieve the Public Listing by the Listing Deadline, Aero retains the right to require Batik to

transfer, assign and convey the RIO Shares back to Aero at no cost.

Share Consolidation

In addition, the Company intends to proceed with a consolidation of its outstanding common shares on the

basis of one post -consolidation common share for ten pre -consolidation common shares (the

“Consolidation”). The Consolidation remains subject to Exchange approval. The effective date and further

details of the Consolidation will be disclosed in a subsequent news release.

Corporate Update

On December 9, 2025 , the Company issued 295,750 warrants to an eligible arm’s length finder in

connection with its November 14, 2024, non-brokered private placement (“Finders Warrants”). The Finders

Warrants are exercisable at $0.11 until November 14, 2026.

About Aero Energy

Aero Energy Limited, following its successful merger with Kraken Energy Corp ., has established a robust

portfolio of uranium assets in North America. The company controls a district -scale 250,000 -acre land

package in Saskatchewan’s Athabasca Basin, including its Sun Dog, Strike, and Murmac projects, which

collectively host over 50 shallow drill -ready targets across 125 km of target horizon in the emerging

Athabasca Basin. These projects are guided by an award -winning technical team with a proven track

record, responsible for major discoveries such as Gryphon, Arrow, and Triple-R. Additionally, Aero Energy’s

portfolio includes Kraken’s 100%-owned Apex Uranium Property, Nevada’s largest past-producing uranium

mine, and the Huber Hills property, spanning 1,044 ha in Nevada and encompassing the historic Race

Track open pit mine. This strategic merger combines Aero’s extensive Canadian exploration assets with

Kraken’s high -grade U.S. properties, positioning Aero Energy to unlock significant high -grade,

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unconformity-style uranium mineralization and capitalize on the growing global demand for uranium. For

more information about Aero, please visit aeroenergy.ca.

On behalf of Aero Energy Limited.

”Galen McNamara”

Interim Chief Executive Officer

604-288-8046

Cautionary Statement Regarding Forward-Looking Information

Information set forth in this news release contains forward -looking statements that are based on assumptions as of the date of this

news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not

guarantees of future performance. Words such as “expects”, “aims”, “anticipates”, “targets”, “goals”, “projects”, “intends”, “ plans”,

“believes”, “seeks”, “estimates”, “continues”, “may”, variations of such words, and similar expressions and references to future periods,

are intended to identify such forward-looking statements.

Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they

involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the

Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors

involved with forward -looking information could cause actual events, results, performance, prospects and opportunities to diffe r

materially from those expressed or implied by such forward -looking information. Forward -looking information in this news release

includes, but is not limited to, the Company’s objectives, goals, intentions or future plans, statements, exploration results , potential

mineralization, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results

to differ materially from such forward -looking information include, but are not limited to failure to identify targets or mineralization,

delays in obtaining or failures to obtain required governmental , environmental or other project approvals, political risks, inability to

fulfill the duty to accommodate First Nations and other indigenous peoples, inability to reach access agreements with other P roject

communities, amendments to applicable mining laws, uncertainties relating to the availability and costs of financing or partnerships

needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the

development of projects, capital and o perating costs varying significantly from estimates and the other risks involved in the mineral

exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR+. Although the

Company believes that the assumpti ons and factors used in preparing the forward -looking information in this news release are

reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no

assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or

obligation to update or revise any forward -looking information, whether as a result of new information, future events or otherwise,

other than as required by l aw. For more information on Aero Energy, readers should refer to Aero Energy’s website at

www.aeroenergy.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchang e)

accepts responsibility for the adequacy or accuracy of this release.