American Future Fuel Corporation announced the completion of its Phase 1 drilling program at the Company?s Cebolleta Uranium Project (?Cebolleta? or the ?Project?) located in the Grants Uranium Mineral Belt. The purpose of the Phase 1 drill program has been to validate historical drill results to prepare a mineral resource estimate.

The Phase I drill program consisted of 26 drill holes averaging 336 feet (112 meters) deep for a total of 9,530 feet (2,904 meters). Radiometric equivalent U308 grade (% e U3O8) values closely match historical data from nearby holes completed by Sohio Western Mining Company (Sohio) from over 50 years ago. Table 1 and Table 2 presented below provide highlights from the Phase 1 drill program and a direct comparison of the historical drilling.

The outstanding results presented are a testament to the quality of the Cebolleta deposit and Sohio?s previous work that is the foundation of the 18.98M lbs U3O8 historical resource that the Company is confident will be brought current as part of the next two phases of drilling. The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current Mineral Resource and the Company is not treating the historical estimate as a current Mineral Resource. The purpose of the confirmation drilling is to accomplish this task.

Technical Discussion: The Company completed 26 drill holes averaging 366 feet (112 meters) deep for a total of 9,530 feet (2,904 meters). Century Wireline Services performed downhole geophysical surveys in each hole including natural gamma to determine radiometric equivalent U308 grades (% eU3O8) followed by Self Potential and Resistivity to determine changes in lithology. Core samples through mineralized zones were collected from select holes for further analysis by the Company.

Key elements to compare geophysical results with historical logs are lithology, along with depth and amplitude of uranium mineralization. Consistent with recent news releases, results from the 26-hole program show remarkably good correlation compared to the Company?s historical database. As part of the confirmation program, the Company is also evaluating the radiometric equilibrium of uranium mineralization using chemical assays of core samples to compare with radiometric results.

Sohio completed extensive equilibrium studies at the Project and determined there was a consistent trend of chemical assays exceeding radiometric assays. With the rapid completion of Phase 1, the Company is on schedule to efficiently complete its three-phase confirmation drilling program designed to test multiple generations of historical data in support of developing a current mineral resource estimate calculation at Cebolleta. In concert with the Company?s on-going drilling programs, the Company has engaged SLR International Corporation, Denver, CO, to prepare a current mineral resource estimate and NI 43-101 Technical Report on the Cebolleta Project.

Cebolleta is an advanced uranium exploration project with a historical uranium Inferred Mineral Resource of 5.6M tons (5.1M tonnes) at an average grade of 0.17% eU3O8 containing 18.98M lbs (8,600 tonnes) U3O8 according to a 2014 NI 43-101 Technical Report commissioned by the previous owner, Uranium Resources Inc.2 The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current Mineral Resource and the Company is not treating the historical estimate as a current Mineral Resource. The purpose of the three-phase drilling program is to accomplish this task.