Mustang Energy's Strategic Athabasca Basin Play: Unlocking Undervalued Uranium Assets and Shareholder Value

In a bold move to capitalize on the resurgence of uranium demand, Mustang Energy Corp. has struck a landmark partnership with Thunderbird Resources Ltd., securing an 80% stake in two high-potential projects in the Athabasca Basin—the world's top uranium-producing region. This agreement positions Mustang to unlock undervalued assets while minimizing upfront risks, creating a compelling case for investors seeking exposure to critical minerals and energy transition plays.

A Structured Play for Maximum Upside, Minimal Immediate Risk

The partnership's terms are designed to balance ambition with fiscal prudence. Under the Cluff Lake Agreement and Surprise Creek Agreement, Mustang will acquire an undivided 80% interest in two projects spanning 34,629 hectares through a staged approach:

• Stage 1: Mustang secures 60% (Cluff Lake) or 51% (Surprise Creek) interest by issuing CAD $200,000 in shares (at $0.235/share) and making an initial CAD $20,000 cash payment.
• Stage 2: To reach 80% ownership, Mustang must fulfill exploration commitments totaling $3 million over four years, alongside additional cash payments and share issuances.

This structure ensures Mustang retains flexibility while advancing high-priority targets. By deferring significant cash outlays and tying obligations to exploration success, the company avoids overextending its balance sheet. Meanwhile, Thunderbird retains a 2% Net Smelter Return (NSR) royalty upon full acquisition, aligning its interests with Mustang's exploration outcomes.

Why the Athabasca Basin? The World's Uranium Powerhouse

The Athabasca Basin is legendary for its high-grade uranium deposits, accounting for 18% of global production in 2023. Projects like Cigar Lake and McArthur River have produced millions of pounds of uranium, and demand is surging due to:
- Energy Transition: Uranium fuels 95% of global nuclear power, a cornerstone of decarbonization.
- Geopolitical Shifts: Russia's dominance in global uranium supply has spurred diversification efforts, with Canada now a critical ally.

The Cluff Lake Project sits just 12km northeast of the historic Cluff Lake mine, where Thunderbird's 2024 MobileMT survey identified basement conductors—key pathways for uranium mineralization. Three priority drill targets (ML-01 to ML-03) align with structural corridors linked to past discoveries.

The Surprise Creek Project, meanwhile, boasts uranium radiometric anomalies up to 7.98% U3O8 and historical copper results (up to 61.7% Cu in rock chips), signaling multi-metal potential. A recently approved work permit for drilling at the Surprise Creek Fault accelerates exploration timelines.

Unlocking Value: The Catalyst for Shareholder Returns

The partnership's true value lies in its ability to convert undervalued exploration assets into tangible resources. Key catalysts include:

1. Low Cost of Entry:

2. Mustang's upfront cash commitment totals just CAD $20,000 per project, with share issuances (totaling CAD $200,000) diluting existing shareholders minimally. This contrasts sharply with outright acquisitions, which often require hefty upfront payments.

3. High-Potential Targets:

4. The Cluff Lake Project's proximity to a historic mine and Thunderbird's geophysical data reduce exploration risk.

5. Surprise Creek's uranium anomalies and copper potential create a “two-for-one” opportunity in a basin where drill success rates for uranium exceed 50%.

6. Scalable Exploration Budget:

7. The CAD $3 million exploration commitment is spread over four years, allowing Mustang to pace spending as it de-risks targets. Early drilling could validate high-grade zones, potentially triggering a revaluation of the projects.

Risks, But Manageable Ones

• Regulatory Delays: The agreements require Canadian Securities Exchange approval and due diligence. However, Thunderbird's existing work permits (e.g., Surprise Creek Fault drilling) suggest regulatory alignment.
• Exploration Uncertainty: Drilling could miss targets, but Mustang's focus on data-rich zones (backed by Thunderbird's surveys) mitigates this risk.

A Call to Action: Positioning for the Uranium Boom

Mustang's move is a masterclass in value creation: low cost, high upside, and a focus on one of the world's most prolific mineral basins. With uranium prices near $40/lb and climbing—driven by supply shortages and decarbonization mandates—this partnership is timed perfectly.

Investors seeking exposure to critical minerals should act now, as early movers will capture the upside of discovery-driven revaluation. The staged payments mean Mustang's stock could see significant momentum once exploration results flow, making this a rare opportunity to buy into a potentially transformative junior miner at a discount.

In short, Mustang Energy's partnership with Thunderbird isn't just a land grab—it's a strategic blueprint to unlock undervalued assets in a geopolitical hotspot. For shareholders, the path to returns is clear: act before the market catches on.