Ms. Cheryl Grue reports

ATHABASCA MINERALS INC. ANNOUNCES REQUIREMENT TO RESTATE ITS FINANCIAL STATEMENTS AND MD&A AND POSTPONEMENT OF THE SPECIAL MEETING

Athabasca Minerals Inc., based on discussions with its auditors, is required to amend and restate its audited consolidated financial statements for the years ended Dec. 31, 2021, and Dec. 31, 2022 (annual financial statements), and the associated management's discussion and analysis, as well as the interim condensed consolidated financial statements and the associated management's discussion and analysis for the three- and six-month periods ended June 30, 2023.

The corporation is required to amend and restate the consolidated financial statements as at and for the years ending Dec. 31, 2021, and Dec. 31, 2022, as the accounting position of a joint operation taken on the setup of its joint arrangement in AMI Silica LLC, entered into in 2021, was found to be incorrect. The accounting conclusion in question concerns whether the joint arrangement should be accounted for as a joint venture or a joint operation. A joint operator, in its consolidated financial statements, recognizes assets, liabilities and net income of the joint operation in relation to the joint operator's interest in the joint operation, whereas a party to a joint venture recognizes its interest in the joint venture as an investment at cost which is adjusted thereafter for the postacquisition change in the party's share of the joint venture's net assets. The corporation is working expeditiously to restate its consolidated financial statements, and such consolidated financial statements and related filings will be filed on SEDAR+ once they have been finalized.

As a result of Athabasca restating its consolidated financial statements, and to ensure that all shareholders and optionholders of Athabasca have an opportunity to review the consolidated financial statements, the corporation is postponing the special meeting of Athabasca securityholders originally scheduled to be held on Nov. 3, 2023. At this time, the corporation intends to hold the postponed meeting on or about Friday, Nov. 17, 2023; however, information confirming the rescheduled date, venue and time for the special meeting of Athabasca securityholders will be communicated to Athabasca securityholders as soon as available. Athabasca shareholders who have already submitted their proxies or voted on-line do not need to take any further action at this time. Athabasca deeply regrets any inconvenience the postponement may cause and appreciates the understanding of Athabasca securityholders.

Dana Archibald, chief executive officer of the corporation, states: "Since announcing the meeting, the response from Athabasca securityholders has been largely positive, underscoring the trust Athabasca securityholders have placed in the corporation. This support reaffirms our commitment to fostering a relationship of trust and transparency with each of our stakeholders. It is in light of this support, as well as the paramount importance of ensuring that Athabasca securityholders have the most accurate and up-to-date information at their disposal, that we have made the decision to postpone the meeting. This decision has not been taken lightly but is a testament of our commitment to serving the best interests of Athabasca securityholders and upholding the highest standards of corporate governance. We understand the significance of your investment in the corporation, and this decision has been made with the utmost consideration with your interests in mind. We are dedicated to ensuring that Athabasca securityholders have sufficient time to review the amended filings prior to the postponed meeting to ensure that our values of trust, fairness and accountability are upheld."

Execution of a settlement agreement and mutual release

The corporation has also executed a settlement agreement and mutual release with an independent, arm's-length supplier.

The agreement, valued at $375,000, is the result of extensive negotiations between Athabasca and the supplier, and is aimed at resolving outstanding financial obligations. As part of the agreement, Athabasca will transfer ownership of five non-core and non-cash-generating resource properties, namely Cowper, Emerson, Hargwen, Pelican and Poplar Creek North, to the supplier. In addition to the asset transfer, the corporation will make a one-time payment of $60,000 to the supplier.

The value of these resource properties is non-material to the corporation's total asset holdings. While they have potential value, they would require continuing capital expenditures to support future growth, making their transfer an economically prudent decision.

Athabasca remains committed to protecting its cash position, and the agreement limits cash outlay while helping the corporation shed some of its environmental and reclamation liabilities. This agreement represents a responsible and forward-thinking approach to managing the company's asset portfolio and financial obligations.

This transaction remains subject to receipt of all necessary regulatory and other approvals, including the final approval of the TSX Venture Exchange.

About Athabasca Minerals Inc.

Athabasca is an integrated industrial minerals company focused on the production and delivery of frac sand to Canada and the United States. Athabasca also operates aggregate operations in Western Canada, and maintains the largest platform for buying, selling and transporting of aggregates through its 100-per-cent-owned technology platform, AMI RockChain.

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