Closing of First Tranche of Strategic Financing for Gross Proceeds of C$2,148,250

Mustang Energy Corp. Announces Closing of First Tranche of Strategic

Financing for Gross Proceeds of C$2,148,250

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES

OR FOR DISSEMINATION IN THE UNITED STATES

Vancouver, British Columbia, December 16, 2024, Mustang Energy Corp . (CSE: MEC, OTC: MEC PF, FRA: 92T )

(“Mustang” or the “Company”) is pleased to announce that, pursuant to its news release of November 25, 2024,

it has completed the first tranche of its non-brokered private placement for aggregate gross proceeds of

C$2,148,250, pursuant to which it sold the following (together, the “Offering”):

• 2,271,000 non-flow through common shares in the capital of the Company (each, a “ Share”) at a price

of C$0.25 per Share for gross proceeds of C$567,750 from the sale of the Shares; and

• 5,450,000 critical flow-through common shares of the Company (each, a “FT Share”, and collectively

with the Shares , the “ Offered Securities ”) at a price of C$ 0.29 per FT Share for gross proceeds of

C$1,580,500 from the sale of FT Shares.

Red Cloud Securities Inc. acted as a finder in connection with the Offering and received $110,635 and 381,500

share purchase warrants (each, a “Finder’s Warrant”). Each Finder’s Warrant is exercisable into one Share (each,

a “Finder’s Warrant Share”) at a price of $0.33 per Finder’s Warrant Share until December 16, 2026.

Nicholas Luksha, the Chief Executive Officer of Mustang, stated “We are very excited to be closing the first

tranche of the financing. This capital raise provides us with resources to engage the various contractors required

to complete our phase one work plan as we endeavor to prove up numerous prospective drill targets.”

Each FT Share is issued as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act

(Canada) (the “Tax Act”). The Company intends to use the proceeds of the Offering for the exploration of the

Company’s uranium projects in the Athabasca Basin in Saskatchewan as well as for general working capital

purposes. The gross proceeds from the issuance of the FT Shares will be used to incur resource exploration

expenses which will constitute “Canadian exploration expenses” as defined in subsection 66.1(6) of the Tax Act

and “flow through critical mineral mining expenditures” as defined in subsection 127(9) of the Tax Act , which

will be renounced with an effective date no later than December 31, 2024 to the purchasers of the FT Shares in

an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. The maximum

offering size of the FT Shares was increased by $580,499.96 after investors expressed greater interest in the FT

Shares than was previously anticipated by the Company, while the total amount of Offered Securities remains

within the maximum offering size disclosed by the Company in its news release dated November 25, 2024.

The securities issued under the Offering are subject to a hold period expiring on April 17, 2025.

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This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in

the United States. The securities have not been and will not be registered under the United States Securities

Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold

within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state

securities laws or an exemption from such registration is available.

About Mustang Energy Corp.

Mustang is a resource exploration company focused on acquiring and developing high-potential uranium and

critical mineral assets. The Company is actively exploring its properties in the Athabasca Basin of

Saskatchewan, Canada. Mustang’s flagship property, Ford Lake, covers 7,743 hectares in the prolific eastern

Athabasca Basin, while its Cigar Lake East and Roughrider South projects span 2,901 hectares in the Wollaston

Domain. Mustang has also established its footprint in the Cluff Lake region of the Athabasca Basin with the

acquisition of the Yellowstone Project and further expanded its presence in the south central region of the

Athabasca Basin with the Dutton Project.

On behalf of the board of directors,

“Nicholas Luksha”

Nicholas Luksha

CEO and Director

For further information, please contact:

Mustang Energy Corp.

Attention: Nicholas Luksha, CEO and Director

Phone: (604) 838-0184

Forward-Looking Statements Disclaimer

This news release includes certain statements and information that may constitute forward -looking

information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to

future events or future performance and reflect the expectations or beliefs of management of the Company

regarding future events. Generally, forward-looking statements and information can be identified by the use

of forward-looking terminology such as “intends”, “believes” or “anticipates”, or variations of such words

and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or

“occur”. This information and these statements, referred to herein as “forward-looking statements”, are not

historical facts, are made as of the date of this news release and include without limitation, statements

regarding discussions of future plans, estimates and forecasts and statements as to management ’s

expectations and intentions with respect to the intended use of proceeds of the Offe ring. Although

management of the Company has attempted to identify important factors that could cause actual results to

differ materially from those contained in forward-looking statements or forward-looking information, there

may be other factors that cause results not to be as anticipated, estimated or intended. There can be no

assurance that such statements will prove to be accurate, as actual results and future events could differ

materially from those anticipated in such statements. Accordingly, readers should not place undue reliance

on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such

information may not be appropriate for other purposes. The Company does not undertake to update any

forward-looking statement, forward -looking information or financial out -look that are incorporated by

reference herein, except in accordance with applicable securities laws.

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Neither the CSE nor the Market Regulator (as that term is defined in the policies of the CSE) accepts

responsibility for the adequacy or accuracy of this release.