Mr. Nick DeMare reports

AUSCAN RESOURCES CLOSES PRIVATE PLACEMENT

Auscan Resources Inc. has closed the private placement financing announced July 28, 2025, and Aug. 18, 2025, by issuing a total of 1.04 million units at 15 cents per unit, each comprising one common share and a half warrant, with each whole warrant entitling the holder to purchase an additional common share at 20 cents per warrant share for one year. In addition, the company issued 460,000 units at 18 cents per unit, each comprising one share and half of a warrant. Each whole warrant entitles the holder to purchase a warrant share at 24 cents per warrant share for one year. Total proceeds of $238,800 from the financing will be used for general working capital purposes. All shares and warrants issued are subject to a four-month hold period from the date of closing. Certain warrants have restrictions which will prohibit exercise in certain circumstances.

In addition, the company announces that the exercise price of 35,000 options, granted to non-insiders, was amended from 27 cents per share to 24 cents per share. All other terms of the options remained the same.

Certain insiders of the company participated in the private placement and purchased in aggregate 835,000 units for a total of $139,050. Participation of insiders in the offering constituted a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101), but was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities issued to the insider nor the consideration paid by the insiders exceeded 25 per cent of the company's market capitalization. None of the company's directors expressed any contrary views or disagreements with respect to the foregoing. The company did not file a material change report 21 days prior to the closing of the offering as the details of the participation of the insiders of the company had not been confirmed at that time.

Insiders that participated in the financing included Nick DeMare, interim chief executive officer, interim chief financial officer and a director of the company. In total Mr. DeMare acquired beneficial ownership of, or control or direction over 770,000 units of the company by purchasing 310,000 units at 15 cents per unit and 65,000 units at 18 cents per unit of the company through DNG Holdings Ltd., a private corporation wholly owned by Mr. DeMare. Mr. DeMare also purchased 395,000 units at 18 cents per unit through 888 Capital Corp., a private corporation 50 per cent owned by Mr. DeMare.

Immediately before the acquisition referred to above, Mr. DeMare held 11,000 shares, 98,000 warrants and 79,000 stock options, representing approximately 0.43 per cent of the then issued and outstanding shares of Auscan on an undiluted basis or 6.8 per cent on a partially diluted basis.

Following the acquisition, Mr. DeMare holds, directly and indirectly, 781,000 shares, 483,000 warrants and 79,000 stock options representing approximately 19.16 per cent of the outstanding shares of Auscan on an undiluted basis or 26.14 per cent on a partially diluted basis assuming the exercise of 385,000 warrants acquired from this financing.

As a result of the acquisition, Mr. DeMare's beneficial ownership of, or control or direction over, the shares increased from 0.43 per cent to 19.16 per cent on an undiluted basis and from 6.8 per cent to 26.14 per cent on a partially diluted basis. As a result of this transaction, Mr. DeMare, directly and indirectly, acquired securities in an amount equal to 2 per cent or more of the issued and outstanding shares on an undiluted and a partially diluted basis.

Mr. DeMare acquired the shares for investment purposes only and will maintain his holdings in Auscan. In the future, Mr. DeMare may take such actions in respect of his holdings in the company as he may deem appropriate, depending on the then market conditions and circumstances.