Atomic Eagle Books 24% Resource Increase at Muntanga as Feasibility Study Clears Independent Review

• Total Mineral Resources at the Muntanga Uranium Project in Zambia increased by 11.4 million pounds of uranium oxide (U3O8) to 58.8 million pounds at 309 parts per million (ppm), a 24% increase following completion of the maiden drilling campaign
• Maiden pit-constrained Inferred Mineral Resource Estimates (MRE) delivered for two new deposits: Chisebuka (19.9 million tonnes at 220 ppm U3O8 for 9.7 million pounds) and Muntanga East (3.1 million tonnes at 252 ppm U3O8 for 1.7 million pounds)
• Independent engineering consultancy PRODEO Consulting confirmed the production targets, capital costs, operating costs, and financial outcomes of the March 2025 Feasibility Study, allowing Atomic Eagle to release it under ASX Listing Rules Chapter 5
• The Feasibility Study models an approximately 12-year open pit mine producing an average of 2.2 million pounds of U3O8 per annum, with pre-production capital of US$282 million and a post-tax net present value (NPV) of US$243 million at an 8% discount rate
• Cash balance stood at $16.3 million as at 31 March 2026, and the largest drill programme at Muntanga in almost 20 years has commenced

Company overview

Atomic Eagle (ASX: AEU | OTCQX: GVXXF) is an ASX-listed mineral resource company focused on the exploration and development of uranium assets in Africa. Its core asset is the 100%-owned Muntanga Uranium Project in Zambia, spanning four mining licences and two exploration licences across a 146-kilometre strike length covering 1,136 square kilometres adjacent to Lake Kariba. Following the March 2026 resource update, Muntanga holds a combined uranium resource of 58.8 million pounds of U3O8 at 309 ppm.

Resource Growth: Two New Deposits Bring Project Total to 58.8 Million Pounds

Atomic Eagle's maiden drilling campaign at Muntanga has delivered its first material resource growth milestone since the company was re-admitted to the ASX in November 2025. Following independent resource estimation by Snowden Optiro, two new deposits - Chisebuka and Muntanga East - were added to the project-wide total in March 2026, lifting the combined resource by 24% to 58.8 million pounds.

Chisebuka, located in the southernmost part of Atomic Eagle's licence package, is now the second-largest deposit in the project area. The company drilled 69 holes across 7,235 metres at the target in late 2025, focused on a higher-grade zone roughly 800 metres by 600 metres in size. The resulting resource came in at 19.9 million tonnes at 220 ppm U3O8 for 9.7 million pounds. The deposit extends from surface to depths of up to 150 metres, remains open for further expansion to the north-west and south-east, and is the first of six priority targets identified across the broader Muntanga licence area.

Muntanga East sits 5 kilometres north-east of the main Muntanga deposit. Previous owner Denison Mines Corp. completed limited drilling there in 2008 and 2012 without following up. Atomic Eagle's programme of 75 holes across 4,799 metres - the first major drilling at the target in 12 years - confirmed a shallow, flat-lying zone of uranium mineralisation measuring 1,000 metres long, 600 metres wide and up to 20 metres thick. Snowden Optiro estimated a resource of 3.1 million tonnes at 252 ppm U3O8 for 1.7 million pounds. Given its proximity to the central Muntanga and Dibbwi East deposits, the target is expected to provide a low-cost addition to the overall mine plan. The new resources across both deposits were added at a discovery cost of US$0.05 per pound, against a spot uranium price of US$86 per pound at the time of the announcement, per the 30 April 2026 ASX quarterly report.

Feasibility Study: Independent Review Clears Path to ASX Release

A Feasibility Study is a detailed business plan for a mine, covering how the ore will be mined, how the uranium will be extracted, what it will cost to build and run, and what financial returns investors might expect. Atomic Eagle needed to have the study - originally completed in March 2025 by previous project owner GoviEx Uranium Inc. (TSX-V: GXU) - reviewed by an independent engineering firm before it could publish the results under Australian stock exchange rules. That review was carried out by PRODEO Consulting (Pty) Ltd, which examined the proposed mining approach, cost estimates, processing design, and the consistency between the technical assumptions and the financial model.

PRODEO found no fundamental problems that would stop the project moving forward, concluding that the mining approach, cost assumptions, and processing design are all reasonable and in line with standard industry practice. Some areas were flagged for further refinement ahead of any construction decision, which Atomic Eagle has committed to addressing. The plan involves mining 39.6 million tonnes of ore over roughly 12 years using a standard open pit approach, with uranium extracted via heap leaching - a well-established process where a chemical solution is applied to crushed ore to collect the uranium - achieving a recovery rate of more than 90%.

The key financial projections from the study, per the 30 April 2026 ASX Quarterly Activities Report, include a construction cost of US$282 million, an operating cost of US$32.20 per pound of uranium produced, an after-tax project value of US$243 million, total life-of-mine cash generation of US$672 million, and a projected payback period of 3.5 years. Alongside the study, Atomic Eagle declared its first formal Ore Reserve - the portion of the resource confirmed as economically mineable under current conditions - of 28.0 million pounds of uranium, under the internationally recognised JORC Code. Investors should note there is no certainty that these projections will be achieved.

Corporate: Cash & Drilling Preparations

Atomic Eagle ended the first quarter of 2026 with $16.3 million in cash, after spending $408,000 on exploration during the quarter. Total operating cash outflows were $2.811 million, giving roughly 5.8 quarters of runway at the current spending rate, per the Appendix 5B lodged on 30 April 2026. There were no mining production or development activities during the quarter.

To prepare for the 2026 drill programme, the company secured two drill rigs under contract and arranged equipment for site preparation. Given uncertainty around fuel supply in Zambia, Atomic Eagle stored 40,000 litres of diesel in its on-site tanks at the Muntanga camp, providing enough fuel to cover the first three months of planned drilling.

Next Steps: Milestones & Catalysts

The 2026 drill programme, described in the quarterly report as the largest at Muntanga in almost 20 years, is the most immediate operational catalyst. Drilling is targeting the untested portions of Chisebuka to expand the deposit, with five further priority targets across the Muntanga licence area still to be drilled. Atomic Eagle has also indicated it will carry out the additional technical work identified by PRODEO Consulting to improve construction readiness. The company's Annual General Meeting is scheduled for 11:00am Australian Western Standard Time on Wednesday 27 May 2026.

Key Takeaway for Investors

The March 2026 quarterly consolidates three concurrent developments at Muntanga: a 24% increase in total uranium resources to 58.8 million pounds from two newly defined deposits, independent validation of the March 2025 Feasibility Study enabling its ASX release, and the start of a multi-target drill programme with five priority zones beyond Chisebuka still to be tested. The Feasibility Study models a post-tax NPV of US$243 million and life-of-mine free cash flow of US$672 million at operating costs of US$32.20 per pound. New resources were added at a discovery cost of US$0.05 per pound. The $16.3 million cash position provides an estimated 5.8 quarters of funding at the current expenditure rate, per the 30 April 2026 Appendix 5B.

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