Mr. Dawn Zhou reports

ABASCA RESOURCES PROVIDES UPDATE ON SUMMER EXPLORATION PROGRAM AT KLS PROJECT AND RESTATES PRIOR RESULTS

Abasca Resources Inc. has provided an update on its 2024 summer exploration program. The program has focused on defining the flake graphite potential at the company's Loki zone, as well as drill testing prospective conductor corridors for uranium mineralization. The drill program is nearing completion and will be followed by the resampling of the 2016 drill cores that originally intersected the Loki zone.

Loki zone -- flake graphite

The summer drilling at the Loki zone included 21 drill holes for approximately 5,500 metres (m). The drilling, which was conducted on a 100 m by 100 m grid, focused on testing the vertical and lateral continuity of the known flake graphite zone that was discovered in 2016. All holes successfully intersected graphite mineralization and samples have been submitted to SRC Geoanalytical Laboratories in Saskatoon for analyses. Samples from one hole have also been selected for metallurgical evaluation.

Brian McEwan, vice-president of exploration, commented: "We are very pleased with the initial drilling at the Loki zone. Visual estimates of the graphite intersections are very similar to the original drilling in 2016 and we're excited to receive the lab results. It's an attractive project and we're looking forward to supporting Saskatchewan's critical mineral sector."

Regional exploration

A total of seven drill holes totalling 3,593 m were completed along the Mustang-Seager trend and the Loki target area north of the Loki zone. Strong silicification along with local clay alteration and oxide staining near fault zones were observed along the trend. Although no significant radioactivity was measured, the corridor remains largely untested with many prospective targets.

Restatement

On Dec. 29, 2022, Abasca and 101159623 Saskatchewan Ltd. (SaskCo) completed a transaction whereby SaskCo sold the Key Lake South (KLS) uranium project to Abasca in consideration of 25,639,288 common shares of Abasca. Following discussions with its independent auditors, Abasca identified an error in the accounting treatment for the transaction, and it has filed the audited financial statements and management's discussion and analysis for the year ended April 30, 2024, include restated comparative figures for the year ended April 30, 2023.

The 25,639,288 common shares of the company received by SaskCo, the former owner of KLS, comprised 66.7 per cent of the issued and outstanding common shares of the company on the date of the transaction and the management of KLS continued as management of the company. As a result of the transaction, the former owner of KLS became the controlling shareholder of the company. The transaction therefore meets the definition of a reverse takeover transaction. The company originally accounted for the transaction as an asset acquisition of the KLS project in the company's financial statements for the year ended April 30, 2023.

On the date of closing of the transaction, Abasca was not considered a business under IFRS 3 (international financial reporting standards), as Abasca did not have inputs and substantive processes that could collectively contribute to the creation of outputs. As a result, the company has accounted for the transaction in accordance with IFRS 2, Share Based Payments, as a reverse takeover, with KLS identified as the accounting acquirer and Abasca as the accounting acquiree. The financial statements for the company's financial year ended April 30, 2024, are issued under the legal parent, Abasca Resources Inc., but are considered to be a continuation of the financial results of KLS.

At the date of closing of the transaction, the transaction was recorded in restated comparative figures, as shown in an attached table.

The difference between the consideration paid to acquire Abasca and the fair value of Abasca's net assets (liabilities) was recorded as a listing expense in the statement of loss and comprehensive loss.

Attached tables summarize the effects of the adjustments described as of April 30, 2022.

The following tables summarize the effects of the adjustments described above as at and for the year ended April 30, 2023:

Full details of the restatement can be found in the company's financial statements for the financial year ended April 30, 2024, as filed on SEDAR+.

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 at 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 uranium project, a 23,977-hectare uranium 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.

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