Ms. Dawn Zhou reports

ABASCA RESOURCES ANNOUNCES ARRANGEMENT OF NON-BROKERED PRIVATE PLACEMENT OF UP TO $3.0 MILLION

Abasca Resources Inc. is raising aggregate gross proceeds of up to $3.0-million that will support the company's continued exploration at the Loki flake graphite deposit at its 100-per-cent-owned Key Lake South project located in Northern Saskatchewan. The Loki deposit now hosts an updated pit-constrained mineral resource estimate (the MRE) that includes an indicated estimate of 6.99 Mt (million tonnes) at 8.27 per cent Cg in addition to an inferred estimate of 15.83 Mt at 6.93 per cent Cg (for more information on the MRE, please refer to the news release previously released on July 14, 2026, on the company's website).

Non-brokered private placement

The company announces that it is raising aggregate gross proceeds of up to $3.0-million for the company's 2026 continuing exploration program to be conducted at the Loki deposit as well as the Thor zone and general corporate purposes by undertaking a non-brokered private placement, consisting of up to an aggregate of 10 million flow-through shares of the company at a price of 25 cents per FT share and 2.5 million non-flow-through shares of the company at a price of 20 cents per NFT share.

The gross proceeds from the issuance of the FT shares are intended to be used to incur Canadian exploration expenses or Canadian development expenses (as these terms are defined in the Income Tax Act (Canada)) 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). The gross proceeds from the issuance of the NFT shares are to be spent on general and administrative expenses.

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 TSX Venture Exchange approval.

Insiders of the company, including directors and officers, may participate in the private placement. Such participants would each be a related party to the company within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions of the Canadian Securities Administrators and their participation in the private placement would each constitute a related party transaction under MI 61-101. The company is exempt from the formal valuation requirement pursuant to Subsection 5.5(b) of MI 61-101 on the basis that no securities of the company are listed or quoted on the Toronto Stock Exchange, Aequitas NEO Exchange Inc., the New York Stock Exchange, the American Stock Exchange, the Nasdaq Stock Market, or a stock exchange outside of Canada and the United States other than the Alternative Investment Market of the London Stock Exchange or the PLUS markets operated by PLUS Markets Group PLC.

The company is also exempt from the minority approval requirement pursuant to Subsection 5.7(1)(b) of MI 61-101 on the basis that: (i) no securities of the company are listed or quoted on a specified market; (ii) at the time the transaction was agreed to, neither the fair market value of the offered shares to be distributed under the private placement nor the consideration to be received for those offered shares, insofar as the transaction involves the related parties, exceeds $2.5-million; (iii) the company has more than one independent director; and (iv) at least two-thirds of the independent directors of the company have approved the private placement.

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 and development of Abasca.

About Abasca Resources Inc.

Abasca is a Canadian company focused on acquiring, exploring and developing mineral properties. Its flagship asset is the 100-per-cent-owned, 23,974-hectare Key Lake South (KLS) project in Northern Saskatchewan, located 15 kilometres south of the historic Key Lake mine and current mill. Geologically similar and along-strike of the past-producing mine, KLS hosts over 50 km of prospective conductors for potential new discoveries, alongside the Loki flake graphite deposit (Loki deposit).

Per the announcement on July 14, 2026, the Loki deposit hosts an updated pit-constrained mineral resource estimate that includes an indicated estimate of 6.99 Mt at 8.27 per cent Cg in addition to an inferred estimate of 15.83 Mt at 6.93 per cent Cg. An independent technical report in respect of the updated mineral resource estimate will be prepared and filed on SEDAR+ and on the company's website within 45 days of the news release made on July 14, 2026). This resource expansion and classification upgrade will underpin the in-progress preliminary economic assessment (the PEA) initiated in May, 2026, that marks a major milestone in derisking the Loki deposit, advancing it from exploration toward a development-ready asset on the company's fast-track road map to production.

We seek Safe Harbor.