Ms. Dawn Zhou reports

ABASCA RESOURCES ANNOUNCES COMPLETION OF WINTER EXPLORATION PROGRAM AND ARRANGEMENT OF NON-BROKERED PRIVATE PLACEMENT OF UP TO $2.5 MILLION

Abasca Resources Inc. has completed its winter 2026 exploration program at the company's 100-per-cent-owned Loki flake graphite deposit in Northern Saskatchewan. The company has arranged a non-brokered private placement of up to $2.5-million.

Highlights:

• Completed 4,922 metres of drilling at the 100-per-cent-owned Loki flake graphite deposit in Saskatchewan:
  • 4,517 m in 18 diamond drill holes;
  • 405 m in 12 sonic drill holes;
• Program focused on:
  • Extending the Loki deposit to the southeast alongside geotechnical and hydrogeological work;
  • Exploration drilling at the Thor zone;
• Loki deposit expansion:
  • Eight drill holes completed across two drill fences;
  • Successfully extended the Loki deposit by 200 m of strike length;
  • Strike length now delineated by 1.4 kilometres;
  • 2025 resource estimate had initial strike length of 600 metres;
• Thor zone exploration:
  • Four holes completed targeting the up-dip extension of previously identified graphite mineralization
  • Confirmed continuity of graphite mineralization similar to previous drilling, assays pending
• Announcement of non-brokered private placement of up to $2.5 million

Winter exploration program

A total of 4,922 m of drilling were completed -- 4,517 m over 18 diamond drill holes and 405 m over 12 sonic drill holes. The drilling focused on three objectives: (1) continued extension of the Loki deposit toward the southeast at 100-by-100-metre grid spacing; (2) geotechnical and hydrogeological drilling; and (3) exploration drilling at the Thor zone.

A total of eight drill holes were completed over two fences to extend the delineation of the Loki deposit by 200 m of strike length. The drilling was designed to verify the folded EM (electromagnetic) conductor interpretation and support geotechnical work. Moderate graphite mineralization was intersected, and the zone remains open downdip. Assay results for these drill holes are shown in an attached table.

An additional four drill holes were completed at the Thor zone, which focused on testing the up-dip continuation of the two graphitic zones identified in KLS-25-072. The drilling at the Thor zone intersected graphitic zones similar to those intersected in the previous drilling program. Assay results for these drill holes are pending.

Geotechnical and hydrogeological drilling was successfully completed and will be incorporated into project studies to further investigate the Loki deposit's resource quality and support the environmental baseline study, along with other wild animal and aquatic data collection. Assay results for these drill holes are pending.

Collected samples were sent to SRC Geoanalytical Laboratories in Saskatoon, Sask., an independent laboratory accredited under ISO/IEC 17025:2017, for preparation and ICP-MS multielement analysis, boron by fusion as well as graphite content (per cent Cg) and total sulphur by LECO. Samples were collected in accordance with industry-standard quality assurance/quality control practices and included the insertion of blanks, standard reference materials and repeats into the sample stream at regular intervals. Samples were also collected for in-field and lab density measurements at regular intervals and through the mineralized zones.

Brian McEwan, vice-president of exploration and development, stated: "We are pleased to have completed another season delineating the Loki deposit and even more excited to have put additional metres into the Thor zone, where we confirmed the up-dip extension of the graphitic zones. We look forward to exploring Thor along strike in parallel to advancing the Loki deposit."

Non-brokered private placement

The company also announces that it is raising aggregate gross proceeds of up to $2.5-million for the company's 2026 continuing exploration program to be conducted at the Loki deposit and Thor zone and general corporate purposes by undertaking a non-brokered private placement, consisting of up to an aggregate of nine million flow-through shares of the company at a price of 25 cents per flow-through share and 1.25 million non-flow-through shares of the company at a price of 20 cents per non-flow-through share.

The gross proceeds from the issuance of the flow-through shares are intended to be used to incur Canadian exploration expenses (as this term is defined in the Income Tax Act (Canada)) that the company may renounce pursuant to the tax act as flow-through mining expenditures (as this term is defined in the tax act) or, if the company determines in its sole discretion, as flow-through critical mineral mining expenditures (as defined in the tax act). The gross proceeds from the issuance of the non-flow-through shares are to be spent on general and administrative expenses.

In connection with the private placement, the company may pay cash finders' fees of up to 6.0 per cent of the gross proceeds raised from investors introduced to the company by finders.

All securities issued and sold under the private placement will be subject to a hold period expiring four months and one day from the date of closing of the private placement. Closing of the private placement is subject to the company's receipt of TSX Venture Exchange approval.

Insiders of the company, including directors and officers, may participate in the private placement. Such participants would each be a related party to the company within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, of the Canadian Securities Administrators and their participation in the offering would each constitute a related party transaction under MI 61-101. The company is exempt from the formal valuation requirement pursuant to Subsection 5.5(b) of MI 61-101 on the basis that the common shares are listed on the exchange. The company is also exempt from the minority approval requirement pursuant to Subsection 5.7(1)(b) of MI 61-101 on the basis that: (i) the common shares are listed on the exchange; (ii) at the time the transaction was agreed to, neither the fair market value of the offered shares to be distributed under the private placement nor the consideration to be received for those offered shares, insofar as the transaction involves the related parties, exceeds $2.5-million; (iii) the company has more than one independent director; and (iv) at least two-thirds of the independent directors of the company have approved the private placement.

For more information on the Loki flake graphite deposit and an overview of the Key Lake South project, please visit the company's website.

Qualified person

The technical information in this news release has been reviewed and approved by Brian McEwan, PGeo, a qualified person as set out in National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. McEwan is the vice-president of exploration and development of Abasca.

About Abasca Resources Inc.

Abasca is a mineral exploration company that is primarily engaged in the acquisition and evaluation of mineral exploration properties. The company owns the Key Lake South (KLS) project, a 23,977-hectare exploration project located in the Athabasca basin region in Northern Saskatchewan, approximately 15 kilometres south of the former Key Lake mine and current Key Lake mill. The project possesses geological similarities and along strike of past Key Lake mine with prospective conductors of over 50 kilometres for potential uranium mineralization. KLS is also host to the Loki flake graphite deposit comprising a total inferred resource of 11.31 million tonnes at 7.65 per cent graphitic carbon. Please refer to the technical report dated May 29, 2025, with an effective date of April 10, 2025, and titled "Technical Report on the Key Lake South Project with Initial Mineral Resource Estimate for the Loki Flake Graphite Deposit, Saskatchewan, Canada," filed under the company's profile on SEDAR+, for further information about the resource estimate.

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