Highlights

• The first tranche of the previously announced $3.0 million special warrant offering has been closed oversubscribed at $3.3 million.
• The company announces an upsizing in the special warrant offering to $3.5 million.
• The company announces an additional non-brokered $0.15 private placement unit offering with a four-month hold totaling $341,250.

Alaska Energy Metals Corporation (TSX-V: AEMC) (OTCQB: AKEMF) is pleased to announce the closing of the first tranche of the previously announced non-brokered offering of 22,255,429 special warrants issued at the price of $0.15 per Special Warrant for gross proceeds of approximately $3,338,314. The Offering has been increased from $3,000,000 to up to $3,500,000.

Each Special Warrant will automatically convert into one unit of the Company, as described below. Each Unit shall consist of one common share of the Company and one common share purchase warrant. Each Warrant shall entitle the holder thereof to acquire one Share at a price of $0.20 per Share for a period of three years following the date of issue.

Each Special Warrant will automatically convert, for no additional consideration, into Units on the date that is the earlier of: (i) the date that is three business days following the date on which the Company files a prospectus supplement to a short form base shelf prospectus with the applicable securities regulatory authorities qualifying distribution of the Units underlying the Special Warrants, and (ii) the date that is four months and one day after the closing of the Offering.

The Company will use its commercially reasonable efforts to file the Prospectus Supplement within 60 days of the closing of the Offering (not including the date of closing), provided, however, that there is no assurance that a Prospectus Supplement will be filed with the securities commissions, prior to the expiry of the statutory four-month hold period.

The Company paid aggregate cash finder’s fees of approximately $181,261 to certain finders, being 7% of the gross proceeds raised by each such finder. As additional compensation the Company issued an aggregate of 1,208,409 non-transferable broker warrants to such finders. Each Broker Warrant is exercisable for one Share at the exercise price of $0.20 for a period of three years.

The net proceeds from the Offering will be used for Canwell prospect drilling at the Nikolai Nickel Project in Alaska, metallurgical studies, working capital and marketing purposes.

Prior to the filing of the Prospectus Supplement and the automatic conversion of the Special Warrants, the securities issued under the Offering will be subject to a four-month hold period from the date of closing of the Offering in addition to any other restrictions under applicable law.

The Company is also pleased to announce that it will undertake a non-brokered private placement of units for gross proceeds of up to $341,250. Each NBPP Unit will consist of one common share of the Company and one common share purchase warrant. Each Warrant shall entitle the holder thereof to acquire one Share at a price of $0.20 per Share for a period of three years following the date of issue. The Company intends to pay the same cash finder’s fee and issue the same number of Broker Warrants as is described under the Offering. The NBPP is subject to TSX.V approval. The securities issued in connection with the NBPP will be subject to a four-month hold period, in accordance with applicable securities laws.

About Alaska Energy Metals

Alaska Energy Metals Corporation is an Alaska-based corporation with offices in Anchorage and Vancouver working to sustainably deliver the critical materials needed for national security and a bright energy future, while generating superior returns for shareholders.

AEMC is focused on delineating and developing the large-scale, bulk tonnage, polymetallic Eureka deposit containing nickel, copper, cobalt, chromium, iron, platinum, palladium, and gold. Located in Interior Alaska near existing transportation and power infrastructure, its flagship project, Nikolai, is well-situated to become a significant domestic source of strategic energy-related metals for North America. AEMC also holds a secondary project, ‘Angliers-Belleterre,’ in western Quebec. Today, material sourcing demands excellence in environmental performance, carbon mitigation, and the responsible management of human and financial capital. AEMC works every day to earn and maintain the respect and confidence of the public and believes that ESG performance is measured by action and led from the top.