Ms. Dawn Zhou reports

ABASCA RESOURCES CLOSES NON-BROKERED PRIVATE PLACEMENT OF $3.0 MILLION AND APPLAUDS THE TARGETED MINERAL EXPLORATION INCENTIVE OF THE GOVERNMENT OF SASKATCHEWAN

Abasca Resources Inc. has closed the non-brokered private placement previously announced on July 20, 2026. Pursuant to the offering, the company has issued 10 million flow-through common shares of the company at a price of 25 cents per FT share to raise gross proceeds of $2.5-million; and 2.5 million non-flow-through common shares at a price of 20 cents per NFT share to raise gross proceeds of $500,000.

Closing of $3.0-million private placement

The gross proceeds from the issuance of the FT shares are intended to be used to support the company's continued exploration at the Loki Flake graphite deposit at its 100-per-cent-owned Key Lake South project located in Northern Saskatchewan. The Loki deposit now hosts an updated pit-constrained mineral resource estimate (the MRE) that includes an indicated estimate of 6.99 Mt (million tonnes) at 8.27 per cent Cg in addition to an inferred estimate of 15.83 Mt at 6.93 per cent Cg (for more information on the MRE, please refer to the company's news release dated July 14, 2026, filed on the SEDAR+ website and posted on the company's website). These expenses are intended to be incurred as Canadian exploration expenses (CEE) or Canadian development expenses (as these terms are defined in the Income Tax Act (Canada)) that, in the case of CEE, 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 NFT shares are to be spent on general and administrative expenses.

The following insiders of the company participated in the offering: John Shmyr, the company's vice-president, engagement and communications, subscribed for 20,000 FT shares; Dave Billard, the chairman of the board of directors, subscribed for 100,000 FT shares; Dawn Zhou, director, president and chief executive officer of the company, subscribed for 840,000 FT shares; Cypress Geoservices Ltd., a corporation of which 100 per cent of the voting shares are held by Mr. Billard, subscribed 100,000 NFT shares; 9169601 Canada Inc., a corporation 100 per cent of the common shares (including joint ownership) and 100 per cent of the preferred shares are held by Ms. Zhou, subscribed for five million FT shares; 101159623 Saskatchewan Ltd. (SaskCo), a corporation the shares of which are solely owned by Ms. Zhou, subscribed for 1.96 million FT shares; and Canada DBD Management Inc., a corporation the shares of which are solely owned by Ms. Zhou, subscribed for two million FT shares. Mr. Billard and Mr. Shmyr, Ms. Zhou, Cypress, 9169601, SaskCo and Canada DBD are each 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 each constituted 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 TSX Venture 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 TSX-V; (ii) at the time the transaction was agreed to, neither the fair market value of the FT shares distributed under the offering nor the consideration to be received for those FT 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 approved the offering.

All common shares issued and sold under the private placement are subject to a hold period expiring on Dec. 1, 2026.

Government support and Saskatchewan targeted mineral exploration incentive

Abasca applauds the government of Saskatchewan for its continued commitment to the critical minerals sector through the Targeted Mineral Exploration Incentive (TMEI). The company is pleased to announce that it has received an additional $150,000 in TMEI grant funding, increasing the total TMEI support for Abasca's continuing exploration and advancement activities at the Loki Flake graphite deposit to $350,000 as of July 31, 2026. Under the current TMEI program, Abasca is eligible to receive up to $150,000 annually in grants which is to be spent on its graphite exploration activities.

The TMEI funding has played an important role in helping to accelerate Abasca's focused exploration strategies at the Loki deposit, directly supporting Saskatchewan's broader initiative to position the province as a premier investment destination for critical minerals. Graphite is a key component in energy storage and clean technologies; financial incentives like the TMEI strengthen domestic supply chains, derisk exploration projects and drive sustainable economic growth in Northern Saskatchewan.

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 Canadian company focused on acquiring, exploring and developing mineral properties. Its flagship asset is the 100-per-cent-owned, 23,974-hectare Key Lake South (KLS) project in Northern Saskatchewan, located 15 kilometres south of the historic Key Lake mine and current mill. Geologically similar and along strike of the past-producing mine, KLS hosts over 50 kilometres of prospective conductors for potential new discoveries, alongside the Loki Flake graphite deposit (Loki deposit).

The Loki deposit hosts an updated pit-constrained mineral resource estimate that includes an indicated estimate of 6.99 Mt at 8.27 per cent Cg in addition to an inferred estimate of 15.83 Mt at 6.93 per cent Cg. An independent technical report in respect of the updated mineral resource estimate will be prepared and filed on SEDAR+ and on the company's website within 45 days of the company's July 14, 2026, news release). Abasca believes that this resource expansion and classification upgrade will underpin the in-progress preliminary economic assessment (the PEA) initiated in May, 2026, that the company believes will mark a major milestone in derisking the Loki deposit, advancing it from exploration toward a development-ready asset on the company's fast-track road map to production.

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