Ms. Penny White reports

LANCASTER RESOURCES CLOSING OF SPIN-OFF OF NELSON LAKE COPPER CORP

The plan of arrangement previously announced on Jan. 30, 2024, including the spinoff of Lancaster Resources Inc.'s wholly owned subsidiary, Nelson Lake Copper Corp., has closed.

The arrangement was approved by the shareholders of the company's common shares at an annual and special meeting held on March 15, 2024, and by the British Columbia Supreme Court in its final order dated March 25, 2024.

Today the arrangement closed pursuant to which Lancaster was issued 1.65 million Nelson common shares at a price of two cents per share, and Lancaster completed the spinoff of a majority of its ownership in Nelson through the issuance of a stock dividend of 1,046,269 Nelson shares to the shareholders at a ratio of 0.02 Nelson common share for each common share held in Lancaster as of Feb. 5, 2024. Nelson also subscribed for 550,000 shares of Lancaster at a price of six cents per share.

Following the transaction, Lancaster continues to own 703,731 common shares of Nelson, and Nelson is now a separate unlisted reporting issuer in each of British Columbia, Alberta, Saskatchewan and Ontario. Nelson owns 100 per cent of the Nelson Lake copper project, which consists of one mining claim covering a contiguous block of 5,746 hectares in Saskatchewan.

Further details regarding the arrangement can be found in the company's management information circular dated Feb. 8, 2024, which can be found under the company's SEDAR+ profile.

More detailed information about the Nelson Lake copper project is contained in the technical report entitled "Nelson Lake Copper Property, Saskatchewan Canada," dated Feb. 1, 2024, prepared by Nikolay Bashaev, Sc, PGeo, and Fallon Clarke, BSc, PGeo, of Apex Geoscience Ltd., of Edmonton, Alta., Canada. The technical report is prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum definition standards and best practice guidelines (2014, 2018, 2019) and the Canadian Securities Administration's National Instrument 43-101 Standards for Disclosure of Mineral Projects, which can be found under the SEDAR+ profile for Nelson.

About Lancaster Resources Inc.

Lancaster Resources is engaged in exploring lithium and uranium and other critical minerals. Its Alkali Flat lithium project, in Lordsburg, N.M., United States, involves the exploration of a below-surface lithium brine target. Lancaster's goal at Alkali Flat is to produce net-zero lithium through the use of direct lithium extraction (DLE) technology and solar power. Lancaster is also collaborating to deploy advanced satellite hyperspectral acquisition, geospatial data aggregation and artificial-intelligence-driven predictive modelling services exploration.

We seek Safe Harbor.