Mr. Paul Baay reports

TOUCHSTONE EXPLORATION PROVIDES PRIVATE PLACEMENT UPDATE

Touchstone Exploration Inc. has provided the following update regarding its previously announced private placement.

Further to the company's May 8, 2025, announcement regarding a 15,375,000-British-pound private placement arranged by Portillion Capital and Oak Securities, the company advises that 10,325,000 British pounds of the gross proceeds remains outstanding. Touchstone has been informed that Portillion Capital and Oak Securities are finalizing documentation related to the settlement of proceeds from certain institutional investors. The company expects to receive the outstanding funds on or before the close of business on June 20, 2025.

To date, the company has received 5.05 million British pounds in gross proceeds, with the corresponding settlement completed through the issuance of new Touchstone common shares of no par value. These proceeds have been allocated to the continuing Cascadura drilling program and for general working capital purposes. The delay in receiving the remaining funds has not impacted the company's current capital activities.

On May 16, 2025, the company issued 75 million new common shares to the settlement agent acting on behalf of Oak Securities. Of these, 24,636,586 common shares have been distributed to investors. The remaining 50,363,414 shares are being held by the settlement agent and will be issued upon receipt of the outstanding funds.

The Toronto Stock Exchange has extended its conditional approval of the private placement, permitting the company to complete the offering on or before June 20, 2025.

Touchstone will provide a further update in due course.

About Touchstone Exploration Inc.

Touchstone Exploration is a company based in Calgary, Alta., engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The company's common shares are traded on the Toronto Stock Exchange and the AIM (Alternative Investment Market) of the London Stock Exchange under the symbol TXP.

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