Ms. Dawn Zhou reports

ABASCA RESOURCES ANNOUNCES EXPLORATION UPDATE AT ITS LOKI FLAKE GRAPHITE DEPOSIT AND NON-BROKERED PRIVATE PLACEMENT OF UP TO $2.5 MILLION

Abasca Resources Inc. has completed geohydrological and geotechnical drilling work as part of its 2025 summer program at its 100-per-cent-owned Key Lake South project (KLS). This drilling consisted of six sonic drill holes totalling of 235 metres and four diamond drill holes totalling 868 m in and around the Loki flake graphite deposit, as detailed in Table 1. The material collected, core logging, lab analysis and continuing monitoring data collection are part of the environmental baseline study initiated in the spring of 2025 to support the design of an open-pit, tailings planning and environmental impact assessment (EIA). Drill core recovered from the diamond drilling will also be used for mineral resource estimates and metallurgical testing. The remainder of the 2025 summer program will now focus on infill drilling on the main pit-constrained inferred resource area at the Loki deposit to support an upgrade of the mineral resource estimate.

Dawn Zhou, president and chief executive officer, stated: "Abasca is delighted with the progress of the environmental baseline study and geotechnical data collection following the 2025 winter resource expansion drilling and the initiation of summer resource upgrade drilling. The company will continue the environmental baseline study, metallurgical testing and other tasks while completing resource drilling for the Loki deposit to advance toward the development stage on an expeditious timeline.

"The Loki deposit continues to provide consistent results with drill cores from the geotechnical drilling in the deposit being similar to that intersected in the 2024 summer drill program. These intersections of strong graphite mineralization confirm our model and provide confidence in continuing to develop this critical mineral resource. As we complete the infill program, we look forward to planning additional programs to test this mineralized trend toward the southwest," commented Brian McEwan, vice-president of exploration.

The company is also announcing a non-brokered private placement of $2.5-million, which would comprise the sale of up to 15,625,000 common shares of the company at a price of 16 cents per FT share, with each FT share to be issued as a flow-through share (as defined in the Income Tax Act (Canada)).

The gross proceeds received from the private placement will be used for exploration activities on the company's KLS project, including the summer infill drilling. The gross proceeds from the issuance of the FT shares are intended to be used to incur Canadian exploration expenses (as this term is defined in the tax act) that 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).

In connection with the private placement, the company may pay cash finders' fees equal up to 6.0 per cent of the gross proceeds raised from investors introduced to the company by finders and issue share purchase warrants equal up to 6.0 per cent of the number of FT shares acquired by investors introduced to the company by finders in accordance with the policies of the exchange. Each finder's warrant would entitle the holder to purchase a common share of the company at a price of 20 cents per share for a period of two years.

All securities issued and sold under the private placement will be subject to a hold period expiring four months and one day from the date of closing of the private placement. Closing of the private placement is subject to the company's receipt of exchange approval.

For more information on the Loki flake graphite deposit and an overview of the Key Lake South project, please visit the company's website.

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 of 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 project (KLS), a 23,977-hectare 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. The project possesses geological similarities and along strike of past Key Lake mine with prospective conductors of over 50 km for potential uranium mineralization. KLS is also host to the Loki flake graphite deposit comprising a total inferred resource of 11.31 Mt (million tonnes) at 7.65 per cent Cg. Please refer to the technical report dated May 29, 2025, with an effective date of April 10, 2025, and titled "Technical Report on the Key Lake South Project with Initial Mineral Resource Estimate for the Loki Flake Graphite Deposit, Saskatchewan, Canada," filed under the company's profile on the SEDAR+ website for further information about the resource estimate.

We seek Safe Harbor.