Update on Kyrgyz Uranium Asset

Atlas Metals (LSE: AMG), the natural resources and energy company, is pleased to provide an update on the Company's interest in the Kamushanovskoye uranium deposit, located in northern Kyrgyzstan, 48km northeast of the capital of the Kyrgyz Republic, Bishkek (the "Project"). The Project is owned by International Mining Company Invest Inc. ("IMC"), a US based company, and currently Atlas Metals has a 10 % interest in IMC.

Whilst the Company's primary focus remains on the proposed acquisition of Universal Pozzolanic Silica Alumina Ltd ("UPSA") (the "Proposed Acquisition"), which is progressing well, this update is provided in view of the significant increase in the uranium price since the Company invested in the Project in 2018. At that time, the in-situ value of contained uranium totalled US$151 million at a uranium price of US$27-28/lb. Over the last six months, the uranium price has reached US$80-85/lb, placing a value of approximately US$700 million on the contained resources.

The Project has been under exploration since 2011 and the State Reserve Committee of Kyrgyzstan ("GKZ") granted an application for a mining licence in January 2019 (the "Mining Licence") for 3,371.1 tonnes of uranium reserves (8.731 million lbs U3O8). This provides an in-situ value of approximately US$700 million at a uranium price of US$80-85/lb. In May 2019, the Kyrgyz parliament voted to ban uranium mining in the country and the Mining Licence was cancelled without any compensation. IMC contested this action and appealed the decision under international arbitration. Hearings were held in 2024-25 and a decision is in process (case ICSID ARB/22/25). The Company believes IMC's case is strengthened by the Parliament of Kyrgyzstan approving a bill lifting the ban on prospecting, exploration, development and mining of uranium and thorium in the Kyrgyz Republic in June 2024.

As part of the work completed since the grant of the Mining Licence and to support IMC's case at arbitration, a detailed review and assessment of the Project took place and was completed in 2024. The review was completed by Dr Mike Armitage, BSc, MIMMM, FGS, CEng, CGeol and confirmed both the potential viability of the extraction method as well as the resource estimate approved by GKZ.

The deposit is uranium oxide hosted in peat soils at depths from surface down to a maximum of 14 metres. Testwork on site of in-situ recovery (ISR) confirmed good extraction of uranium using sodium carbonate as the leaching solution. ISR comprises the injection of the leaching solution into the site and recovering the pregnant solution using shallow pump wells. The pregnant solution can be enhanced on site to a product than can be shipped for final processing. Due to the shallow depths and simple technology, the operating and capital costs are low.

Discussions are underway with possible development partners and the Kyrgyz government to find a satisfactory conclusion for all parties.

Chris Chadwick, Chief Executive Officer of Atlas Metals, commented:

"While our primary focus is on completing the transformative acquisition of UPSA, it is noteworthy that our long-term belief in Atlas' Kyrgyz uranium project is being validated. We will continue to seek to derive value from this project in parallel with completing the UPSA transaction and I look forward to providing further updates in due course."