Ms. Dawn Zhou reports

ABASCA RESOURCES PROVIDES EXPLORATION UPDATE AT ITS LOKI FLAKE GRAPHITE DEPOSIT AND GRANTING STOCK OPTION

Abasca Resources Inc. has provided an update on the exploration activities at its 100-per-cent-owned Key Lake South (KLS) project. Exploration in 2025 comprised two drill programs at the Loki flake graphite deposit to support expansion and upgrading of resource estimates, which the company anticipates to complete in the first half of 2026. The deposit currently has a 11.31-million-tonne pit-constrained inferred flake graphite resource at 7.65 per cent Cg (graphitic carbon), which was released earlier this year with an effective date of April 10, 2025, derived principally from the results of the 2024 summer drill program.

"Building on the favourable geological setting, the existing mineral resource base and ongoing technical work -- including the environmental baseline study, metallurgical test work, geotechnical drilling and initiation of open-pit mining design -- Abasca is now turning its attention to preparing a preliminary economic assessment (PEA) in mid-2026 and then transition to preparing a prefeasibility study (PFS) in late 2026. We believe these integrated efforts will accelerate the Loki deposit's predevelopment timeline, mitigate project risks and enhance asset value. Furthermore, this work aligns with the critical mineral strategies of Saskatchewan and Canada, thereby reinforcing the North American graphite supply chain," stated Dawn Zhou, president and chief executive officer.

The winter 2025 program (see company's press release dated Nov. 12, 2025, for results) focused on expansion of the MRE toward the northwest and southeast, extending the strike length of graphite mineralization at inferred spaced drilling by 700 metres. The summer 2025 program focused on infill drilling of the MRE and comprised 6,691 metres over 35 holes, inclusive of the 1,103 metres from the 10 geotechnical drill holes completed at the beginning of the summer (refer to the company's release on Sept. 8, 2025).

The infill drilling at the Loki deposit continued to provide strong graphite intersections like those seen in the 2024 drilling that made up the MRE. All drill holes successfully intersected mineralization and support the existing MRE wireframe modelling. Assays from the summer program are pending.

Brian McEwan, vice-president of exploration, commented: "We had a very successful year completing the extension and infill drilling programs at the Loki deposit. The strike length we've added to the Loki deposit will add significant tonnage in addition to the confidence the summer infill results. These drill programs reaffirm our geological interpretations and our continued belief in the value of the project in Saskatchewan. Graphite is a critical mineral, and we will continue to advance the Loki deposit toward development."

The company is planning a winter 2026 drill program to further expand the Loki flake graphite deposit toward the southeast, along with further geotechnical and hydrogeological work. Additionally, drilling will take place along the Thor zone to evaluate the extents of this parallel zone, which is only a few hundred metres north of the Loki deposit.

Collected samples were sent to SRC Geoanalytical Laboratories in Saskatoon, Sask., an independent laboratory accredited under ISO/IEC 17025:2017, for preparation and ICP-MS multielement analysis, boron by fusion as well as graphite content (per cent Cg) and total sulphur by LECO. Samples were collected in accordance with industry-standard quality assurance/quality control practices and included the insertion of blanks, standard reference materials and repeats into the sample stream at regular intervals. Samples were also collected for in-field and lab density measurements at regular intervals and through the mineralized zones.

The company also announces the grant of 3,875,000 incentive stock options to its directors and officers, with each option entitling the holder to purchase one common share of the company for a period of five years at an exercise price of seven cents per share.

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 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 the past Key Lake mine with prospective conductors of over 50 kilometres for potential uranium mineralization. KLS is also host to the Loki flake graphite deposit, comprising a total inferred resource of 11.31 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 SEDAR+, for further information about the resource estimate.

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