Mr. Andrew Watson reports

LANCASTER ANNOUNCES ADOPTION OF SEMI-ANNUAL REPORTING AND CORPORATE UPDATE

Lancaster Resources Inc. has elected to rely on CSA Coordinated Blanket Order 51-933 (Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers) and move to semi-annual reporting.

The blanket order is a Canadian securities regulators' pilot program that allows eligible venture issuers to voluntarily move from quarterly to semi-annual financial reporting.

The corporation's fiscal year ends on March 31. Under the SAR pilot program, the corporation will be exempt from filing interim financial reports and related management's discussion and analysis for its first and third quarters.

Accordingly, the corporation will not file interim financial statements or related MD&A for the nine-month period ending Dec. 31, 2026, or for any subsequent three-month periods ending June 30 and nine-month periods ending Dec. 31, respectively.

The corporation will continue to file audited annual financial statements, annual MD&A and related annual disclosure documents (due within 120 days of March 31) and six-month interim financial reports and related MD&A (due within 60 days of Sept. 30). The corporation remains committed to timely disclosure, and will continue to report all material changes and significant developments in accordance with National Instrument 51-102 (Continuous Disclosure Obligations).

The corporation confirms that it meets the eligibility criteria under the blanket order. The corporation has determined that participation in the SAR pilot program will ease the administrative and financial burden associated with quarterly reporting and is consistent with the objectives of the blanket order.

This news release is being filed pursuant to CSA Coordinated Blanket Order 51-933 (Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers).

Corporate update

The corporation also announces that it has been unable to complete its previously announced financing on acceptable terms and, as a result, has commenced a review of strategic alternatives to preserve capital and maximize shareholder value. The corporation is evaluating a range of alternatives, including additional financing, strategic partnerships, asset transactions and other corporate opportunities.

In connection with this review and the corporation's current capital position, the corporation has determined not to proceed with its option on the Lake Cargelligo project. The corporation will therefore allow the option agreement to terminate and return the property to its underlying owners. This decision will eliminate future property expenditures and allow the corporation to focus its financial resources on its highest-priority opportunities at Lac Iris in Quebec.

The company also announces that its chief financial officer, Rick Huang, resigned from the position, effective Aug. 31, 2026. The company thanks Mr. Huang for his contributions and wishes him well in his future endeavours. The company is evaluating its requirements for the CFO role as part of its broader strategic review, and current responsibilities are being completed at the board level.

The corporation will provide further updates as the strategic review progresses.

About Lancaster Resources Inc.

Lancaster is a Canadian exploration company advancing a diversified portfolio of gold and silver exploration projects in established mining jurisdictions. The corporation holds a 100-per-cent interest in the Lake Cargelligo gold project in New South Wales, Australia, which is prospective for both gold and silver mineralization, covering approximately 62,300 hectares with a history of drilling and exploration and multiple high-priority targets. In Canada, Lancaster's assets include the Lac Iris polymetallic project in Quebec's James Bay region and the Piney Lake gold project in Saskatchewan. Lancaster's portfolio provides exposure to gold, silver and polymetallic exploration opportunities across Tier 1 jurisdictions.

We seek Safe Harbor.