Kraken Energy Reports Elevated Radioactivity in Five Drillholes on the Garfield Hills Property, Nevada

Second drill rig added to Expand & Accelerate program

Vancouver, British Columbia – (Newsfile Corp. – December 20, 2022) – Kraken Energy Corp. (CSE:UUSA) (OTCQB:UUSAF) (The “Pursue” or “Kraken Energy“) is pleased to announce that it has added a second drill rig on the Garfield Hills uranium property (“Garfield Hills” or the “Property‘) in Nevada and will expand its initial drill program after receiving positive initial drill results.

Current drilling highlights:

• Five drill holes intersected elevated radioactivity:

Hole GH22-01 cut 22.0 meters (“m”) with increased radioactivity with scintillometer readings larger than 250 to 1500 CPS (20.0 to 42.0m)

• Including 1200-1500 cps over 1.0m (25.0 to 26.0m)

Hole GH22-02 cut 16.0 m with increased radioactivity with scintillometer readings greater than 250 to 950 cps (40.5 to 56.5m)

• Includes 700-950 cps over 2.0m (42.0 to 44.0m)

Hole GH22-03 cut 32.0 m with increased radioactivity with scintillometer readings greater than 250 to 370 cps (0.0 to 32.0m)

Hole GH22-05 cut 24.5 m with increased radioactivity with Scintillometer readings from greater than 250 to 560 cps (51.0 to 75.5m)

• The initial drill program was expanded from 2,000m to 2,500m

• An additional drilling rig has been added to support the goal of increased logging performance

• Elevated radioactivity within the sandstone host unit remains open in all directions

*GH22-06 drill core is currently being processed but shows elevated radioactivity similar to that reported in drill holes. Hole GH22-04 was abandoned before reaching the intended horizon due to mechanical problems, but will be restarted. Total radioactivity was measured with an RS-125 Scintillometer/Spectrometer. All readings are reported in counts per second (“cps”). All reported drill holes are on vertical dip.

“We are very encouraged by these initial drill results from Garfield Hills which confirm the presence of uranium mineralization as previously reported,” commented CEO Matthew Schwab. “With an extended vertical width of up to 32.0m, the mineralized horizon shows greater potential than originally anticipated for the project and provides a solid rationale for expanding and accelerating our ongoing program.”

illustration 1: Plan map of expanded Garfield Hills drill program

To view an expanded version of this graphic, please visit:
https://images.newsfilecorp.com/files/8684/148789_0ac544fb74594a42_001full.jpg

The Company has added a second drill rig and is expanding the original 2,000m, 25-hole Phase I diamond drilling program to 2,500m as a result of initial successful drill results with intersections ranging from 16.0m to 32.0m, showing elevated radioactivity in excess of 250 tons yielded 1500 cps on the Garfield Hills property.

The 1,238 hectare (3,060 acres) Garfield Hills property is under the jurisdiction of the Nevada Bureau of Land Management (“BLM‘), 19 kilometers (‘km’) (12 miles) east of Hawthorne in Mineral County, Nevada.

Investor Relations Commitment:

The Company has engaged Kin Communications Inc. (“Kin”) to support its investor relations activities. Kin Communications is a full service investor relations agency with over 20 years of multi-industry experience, in-depth knowledge and a strong track record in the uranium exploration and development sector.

Pursuant to the terms of the investor relations agreement with Kin, Kin has agreed to assist Kraken Energy with investor relations, including communicating with and marketing to potential investors, shareholders and media outreach, for a period of 12 months and up to a month-month basis after that. In exchange for the services, the Company has agreed to pay Kin $12,500 per month for the first 12 months. In addition, the Company has granted Kin stock options to purchase 200,000 common shares of the Company at a price of $0.40 per share for a period of five years.

Kin is owned by President and Chief Executive Officer, Arlen Hansen, and has no direct relationship with the Company except as described in this press release.

The investor relations agreement with Kin and the grant of options under it are subject to regulatory approval.

management changes

Jan Urata of Take it Public Services has resigned as Corporate Secretary effective December 1, 2022. The Board thanks Ms. Urata for her services and wishes her well in her future endeavors.

We are pleased to announce the appointment of Maria Wells as Corporate Secretary, also effective December 1, 2022.

Technical information

All scientific and technical information contained in this news release was prepared or reviewed and approved by Matthew Schwab, P.Geo., the Company’s President and CEO, and Garrett Ainsworth, P.Geo., the Company’s Chairman. Both Mr. Schwab and Mr. Ainsworth are Qualified Persons as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

The natural gamma ray in drill core reported in this news release was measured in counts per second (cps) using a Radiation Solutions RS-125 handheld spectrometer. The Company considers more than 250 cps on the spectrometer to be elevated radioactivity over background radioactivity levels of 50 to 150 cps. The reader is cautioned that the scintillometer readings are not directly or consistently related to the uranium grades of the measured rock sample and should only be used as a preliminary indication of the presence of radioactive materials. All reported depth measurements are log measurements and true width is yet to be determined. Drill core samples are bisected on site at 0.5 meter intervals. One half of the split sample is sent to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025:2005 accredited facility) in Saskatoon, Saskatchewan for lithogeochemical analysis using their “uranium package”.

About Kraken Energy Corp.

Kraken Energy Corp. is a new energy company advancing its 100% owned Apex uranium property located 280 km (174 miles) east of Reno, Nevada. The Apex property is considered Nevada’s largest past producing uranium mine. The Company has also entered into an option agreement to acquire 100% of the Garfield Hills uranium property located 19 km (12 miles) east of Hawthorne in Mineral County, Nevada. Additional staking has been completed on the Garfield Hills uranium property, bringing the total area of ​​the property to 1,238 hectares (3,060 acres). For more information about the company, visit www.krakenenergycorp.com.

On behalf of the Board of Directors of Kraken Energy Corp.

Matthew Schwab
President & Chief Executive Officers

Corporate Headquarters:
907 – 1030 West Georgia Street
Vancouver, BC, V6E 2Y3

For Investor Relations inquiries contact:
Kristina Pillon, High Tide Consulting Corp.
E: [email protected]

The CSE has neither approved nor disapproved the contents of this press release. Neither the CSE nor its Regulation Service Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this press release.

This press release contains “forward-looking information” that is subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company’s control. Such statements are subject to all of the risks and uncertainties normally associated with such events. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward-looking statements. Such forward-looking statements represent management’s best estimate based on information currently available.

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