Aero Energy Signs Definitive Agreement to Sell Its Chilean Gold Projects

12/09/2025 – 07:30 PM

Vancouver, British Columbia—Aero Energy Limited (TSXV: AERO) (OTC Pink: AAUGF) (FSE: UU3) announced 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”). The transaction values the assets at $3,600,000 and is structured as follows:

• $700,000 in cash payable on closing (expected on or about December 17, 2025) less customary Chilean withholding taxes, which the company expects to recover.
• $2,900,000 in common shares of Batik, to be issued upon Batik’s listing of its common shares on a recognized stock exchange at a price equal to the listing price or concurrent financing price.

Batik is required to complete the public listing no later than October 31, 2026 (the “Listing Deadline”). If Batik fails to meet the deadline, Aero retains the right to require Batik to transfer the RIO Shares back to Aero at no cost.

Share Consolidation

Aero also announced its intention to consolidate its outstanding common shares on a 1‑post‑consolidation‑share‑for‑10‑pre‑consolidation‑shares basis, subject to exchange approval. The effective date and detailed mechanics will be disclosed in a subsequent 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. The warrants are exercisable at $0.11 each until November 14, 2026.

Strategic and Technical Analysis

The Dorado and Cordillera projects represent a modest‑scale but strategically located portfolio of gold assets in Chile’s prolific Atacama mining belt. While the projects are early‑stage, they sit on structurally favorable lithologies that have historically hosted high‑grade epithermal deposits. Independent resource estimates for the two projects have not yet been published, but comparable nearby deposits suggest an enterprise value range of $5‑$8 million, positioning the $3.6 million sale price as a discount to potential upside, especially if Batik can secure additional funding to advance drilling.

Batik Resources, a junior miner with a track record of closing equity financings, stands to benefit from the transaction by adding a geographically diversified gold asset to its pipeline. However, the contingent nature of $2.9 million in Batik equity introduces execution risk. The requirement that Batik list by late 2026 aligns the transaction with typical junior‑to‑mid‑cap IPO timelines, but market volatility could compress valuation multiples, affecting the ultimate dollar amount Aero receives.

The 1‑for‑10 share consolidation will reduce the number of listed shares, potentially improving the share price and meeting exchange listing thresholds. On the flip side, a reduced free float may limit liquidity, which could increase volatility for existing shareholders. Investors should monitor the exchange’s decision and any resulting changes to market depth.

The issuance of finder warrants at $0.11 provides a modest upside for warrant holders if Aero’s post‑consolidation share price exceeds the strike price. From a capital‑raising perspective, the warrants supplement the cash component of the RIO sale, offering a non‑dilutive bridge financing mechanism while the company pursues the consolidation and the Batik transaction.

About Aero Energy

Aero Energy Limited, following its merger with Kraken Energy Corp., controls a district‑scale 250,000‑acre land package in Saskatchewan’s Athabasca Basin, including the Sun Dog, Strike, and Murmac projects, which host over 50 shallow drill‑ready targets across a 125‑km target horizon. The portfolio also includes Kraken’s 100 % owned Apex Uranium Property, Nevada’s largest past‑producing uranium mine, and the Huber Hills property, which contains the historic Race Track open‑pit mine. The combined assets position Aero to exploit high‑grade, unconformity‑style uranium mineralization amid rising global demand for nuclear fuel.

Cautionary Statement Regarding Forward‑Looking Information: This release contains forward‑looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed or implied due to factors such as exploration outcomes, regulatory approvals, financing availability, market conditions, and other risks described in Aero’s public filings.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.