ATHA Energy Announces Election to Issue Common Shares in Satisfaction of US$25 Million Convertible Debenture Interest Payment Obligations NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE

On Friday, July 31, 2026 at 7:00AM ET

ATHA Energy Announces Election to Issue Common Shares

in Satisfaction of US$25 Million Convertible Debenture

Interest Payment Obligations

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE

UNITED STATES

VANCOUVER, BC / ACCESS Newswire / July 31, 2026 / ATHA Energy Corp. ("ATHA" or the "Company")

(TSXV:SASK)(OTCQX:SASKF)(FRA:X5U) announces that in accordance with the terms of the US$25,000,000 twelve

percent convertible debenture issued to Queen's Road Capital Investment Ltd. ("QRC") on February 5, 2026 (the "Convertible

Debenture"), the Company has elected to issue 340,136 common shares in the capital of the Company ("Common Shares") at

a deemed price of US$0.735 (C$1.031) to QRC as payment for US$249,999.96 (C$350,349.941) in interest owing on the

Convertible Debenture.

Under the terms of the Convertible Debenture, interest is payable quarterly, eight percent in cash and four percent in Common

Shares, at a price per Common Share equal to the greater of the volume-weighted average trading price of the Common Shares on

the TSX Venture Exchange ("TSXV") for the 20 trading days ending three trading days prior to the date on which such interest

is due, and the minimum price permitted by the policies of the TSXV.

The issuance of the Common Shares as payment for interest owing on the Convertible Debenture is subject to the terms and

conditions of the Convertible Debenture as well as the receipt of all requisite approvals, including, without limitation, the

approval of the TSXV.

About ATHA Energy

ATHA Energy is a uranium mineral exploration Company focused on advancing exploration at scale at its flagship Angilak

Project in southern Nunavut, where ATHA controls 100% of the Angikuni Basin. ATHA offers significant exposure to uranium

discovery, controlling the largest cumulative prospective exploration land package (6.8 million acres) across Canada's most

prominent basins for uranium discoveries, and 10% carried interest exposure in key Athabasca Basin exploration projects

operated by NexGen Energy Ltd. and IsoEnergy Ltd. ATHA is institutionally backed, led by a strategic investment from Queens

Road Capital Investment.

For more information visit www.athaenergy.com and review ATHA's company profile on SEDAR+ at www.sedarplus.ca.

On Behalf of the Board of Directors

Troy Boisjoli, CEO, ATHA Energy Corp

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

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Troy Boisjoli

Chief Executive Officer

Email: [email protected]

Website: www.athaenergy.com

Phone: 1-(236)-521-0526

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the

securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the

United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933,

as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for

account or benefit of, U.S. persons unless registered under the 1933 Act and applicable state securities laws, or an exemption

from such registration requirements is available. "United States" and "U.S. person" have the meaning ascribed to them in

Regulation S under the 1933 Act.

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

Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note:

(1) Converted to Canadian Dollar (CAD) based on July 30, 2026, conversion pricing.

Cautionary Statement Regarding Forward-Looking Information

The information contained herein contains "forward-looking information" within the meaning of applicable Canadian securities

legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or

developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements

with respect to, the receipt of the TSXV approval in respect of the issuance of Common Shares to QRC. Generally, but not

always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget",

"scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of

such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken",

"occur" or "be achieved" or the negative connotation thereof.

Such forward-looking information is based on numerous assumptions, including among others, that the TSXV will approve the

issuance of the Common Shares to QRC as expected, the results of planned exploration activities are as anticipated, the price of

uranium and other commodities, the anticipated cost of planned exploration activities, that general business and economic

conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable

terms, that third party contractors, equipment and supplies and governmental and other approvals required to conduct the

Company's planned exploration activities will be available on reasonable terms and in a timely manner, and the other assumptions

set out in the current annual information form of the Company, copies of which are available on its SEDAR+ profile at

www.sedarplus.ca. Although the assumptions made by the Company in providing forward-looking information are considered

reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.

Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which

may cause actual events or results in future periods to differ materially from any projections of future events or results expressed

or implied by such forward-looking information or statements, including, among others: regulatory delays, negative operating

cash flow and dependence on third party financing; uncertainty of additional financing; no known current mineral resources or

reserves; the limited operating history of the Company; aboriginal title and consultation issues; reliance on key management and

other personnel; actual results of exploration activities being different than anticipated; changes in exploration programs based

upon results; availability of third party contractors; availability of equipment and supplies; failure of equipment to operate as

anticipated; accidents; effects of weather and other natural phenomena and other risks associated with the mineral exploration

industry; environmental risks; changes in laws and regulations; community relations and delays in obtaining governmental or

other approvals and the risk factors with respect to the Company set out in the Company's current annual information form and

the Company's other filings with the Canadian securities regulators and available under the Company's profile on SEDAR+ at

www.sedarplus.ca.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those

contained in the forward-looking information or implied by 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 forward-looking information will prove to

be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly,

readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to

update or reissue forward-looking information as a result of new information or events except as required by applicable securities

laws.

SOURCE: ATHA Energy Corp.