Mr. John O'Donnell reports

TSXV ACCEPTS PARTIAL CANCELLATION AND SETTLEMENT OF DEBT FOR SHARES

Further to Absolutely Critical Resources Corp.'s (formerly AFR Nuventure Resources Inc.), news release dated May 21, 2026, the TSX Venture Exchange has accepted its proposal to settle an aggregate of $381,000 in outstanding debt by cancellation of $176,000 of the debt and settlement of the $205,000 balance through the issuance of 4.1 million common shares of the company at a deemed price of five cents per common share. The debt arose as a result of certain management and directors who accrued unpaid compensation and expense for two years as recorded in the audited financial statements of the company duly filed on SEDAR+. The reduced debt has been calculated in accordance with TSX Venture Exchange Policy 4.3, Shares for Debt, with the balance of the debt being cancelled and forgiven. Forty per cent of the reduced debt was assigned to arm's-length parties at a discount of 50 per cent to the amount of the debt. Accordingly, the shares issued for the assigned portion of the debt are subject to the exchange legend restricting trading in the shares to five equal tranches of 20 per cent each, whereby 20 per cent of the shares will be issued today, with each 20-per-cent tranche of the remaining shares being issued every three months thereafter. All of the shares issued in exchange for the debt are also subject to the statutory four-month hold period from today's date. There are 37,810,111 issued and outstanding common shares of the company following completion of the debt settlement.

The board of directors of the company determined that the share-for-debt transactions is in the best interests of the company and removes a significant burden on the company's ability to move forward with its business plans.

The company will be issuing a progress report shortly on its 2026 exploration programs.

Multilateral Instrument 61-101 disclosure

The participation of certain insiders, being related parties of the company, means that the share-for-debt transaction is considered to be a related party transaction of the company for purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions.

The company may, however, complete the share-for-debt transaction in reliance on exemptions available under MI 61-101 from the formal valuation and minority approval requirements of MI 61-101. Specifically, the share-for-debt transaction is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on Section 5.5(b) of MI 61-101 as the company is not listed on a specified market within the meaning of MI 61-101. Additionally, the share-for-debt transaction is exempt from the minority approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(1)(a) of MI 61-101 insofar as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the share-for-debt transaction, insofar as it involves (or is expected to involve) interested parties, exceeds 25 per cent of the company's market capitalization.