Atomic Eagle Locks In Option to Acquire a Large, Historically Drilled Uranium Project in Zambia

• Atomic Eagle  has signed a binding option agreement to acquire full ownership of the Sitwe Uranium Project, a large uranium exploration licence in north-eastern Zambia, expanding its total land holdings in the country by 38%.
• Past drilling at the most explored part of the project returned strong uranium grades in all seven holes completed, with mineralisation starting at shallow depths and remaining open for further discovery.
• Sitwe sits on the same regional geological belt as a known producing uranium deposit in neighbouring Malawi, supporting the case that the wider area is naturally enriched in uranium.
• The deal is structured as a low-cost option, requiring US$200,000 in exploration expenditure before the company can choose to buy the licence outright for a further US$400,000.
• Significant portions of the licence have never been properly surveyed, meaning most of the project's potential has not yet been tested.

A New Addition to Atomic Eagle's Zambian Portfolio

Atomic Eagle (ASX: AEU | OTCQX: GVXXF) has signed a binding agreement giving it the option to buy 100% of the Sitwe Uranium Project in north-eastern Zambia, announced on 19 May 2026. The licence covers 429 square kilometres - roughly the size of a mid-sized city - and adds it to Atomic Eagle's existing Zambian holdings, increasing its total land position in the country by 38%.

For investors new to mining, an option agreement works similarly to a deposit on a house. The company secures the right to purchase the asset after exploring it first. If results are encouraging, it proceeds with the full acquisition. If not, it can walk away - without committing full capital upfront.

Sitwe sits on the same regional geological belt as the Kayelekera uranium deposit in neighbouring Malawi, operated by Lotus Resources, adding scientific weight to the case that uranium is naturally present across the broader area. The licence also contains two distinct rock sequences already proven to host uranium elsewhere - one of which hosts uranium at Atomic Eagle's own Muntanga project.

What Past Drilling Has Already Found

The only drilling ever done at Sitwe was carried out by African Energy Resources Limited between 2010 and 2012, at the most developed part of the licence called Sitwe North. Seven drill holes were completed, and every one of them hit uranium mineralisation. The uranium was found at shallow depths - generally positive from a future mining cost perspective - and the mineralised zones remain open, meaning they could extend further in multiple directions.

Chief Executive Officer Phil Hoskins said the historical results support the company's rationale for the acquisition:

"Sitwe complements our flagship Muntanga Project by adding a large, prospective licence position in a highly endowed basin, with encouraging historical results and clear potential for further discovery."

Large areas of the licence - particularly across the southern half - have never been drilled and contain multiple elevated radiation readings that have not yet been followed up with any ground work.

A Disciplined Entry Structure

Rather than paying full acquisition cost upfront, Atomic Eagle must spend US$200,000 on exploration work before 30 June 2027, after which it can buy the licence outright for a further US$400,000. The total potential outlay to secure full ownership is US$600,000, with the majority going directly into exploration.

Hoskins noted the approach reflects the company's broader strategy in Zambia:

"Zambia is a well-established and supportive mining jurisdiction, and we continue to see significant opportunity to build scale through the acquisition and systematic exploration of high-quality uranium assets. The option structure allows us to advance this opportunity in a disciplined manner while maintaining flexibility as we continue to grow our broader uranium portfolio in Zambia."

Investors should note that approximately 30% of the licence area sits within a Game Management Area, where exploration and any future mining would require separate regulatory approvals.

Next Steps

Atomic Eagle is planning its first exploration programme at Sitwe, expected to include surface mapping and ground-based surveys to identify the most promising areas for future drilling. Separately, the company recently commenced a 30,000-metre drilling campaign at its flagship Muntanga Uranium Project aimed at growing its existing uranium resource, with further results expected in the coming weeks.

FAQs (AI-Generated)