Kraken Energy Corp. announced that it has entered into a binding letter of agreement (the "Agreement") to acquire up to a 75% interest in the Harts Point Uranium Property (Figures 1 & 2) in San Juan County, southeast Utah ("Harts Point" or the "Property"). The Property is located in the center of the Colorado Plateau, referred to by some as "the US version of the Athabasca Basin," and is 64 kilometers ("km") (40 miles) north of the White Mesa Uranium Mill, the only fully licensed and operating conventional uranium mill in the United States.

Under the terms of the Agreement, the parties will enter into a definitive option agreement (the "Option Agreement") within 60 days, pursuant to which the Company may acquire up to 75% of the Harts Point Property from Atomic Minerals Corporation ("Atomic") by meeting the following requirements: Kraken will be the operator and must incur USD 1.5 million of eligible expenditures within 18 months from the date of the Option Agreement to earn a 65% interest. Kraken has the option to increase interest in the Property from 65% to 75% by incurring an additional USD 2.0 million of eligible expenditures within 30 months from the date of the Option Agreement and issuing Atomic 2.0 million common shares of Kraken. Kraken will grant Atomic a 2.0% net smelter royalty (subject to a buy down to 1.0% for USD 5.0 million).

After the initial option (Kraken 65%: Atomic 35%) or the extended option (Kraken 75%: Atomic 25%), a definitive Joint Venture Agreement will be formed. As consideration for identifying the Harts Point Property and facilitating completion of the proposed transaction, finder's fees are being considered according to CSE policy for a "non-arm's length party" to the Company.