Mr. Andrew Watson reports

LANCASTER RESOURCES ANNOUNCES FINAL CLOSING OF FINANCING -- UPSIZED FROM ORIGINAL $500,000

Lancaster Resources Inc. has completed the final closing of its non-brokered private placement. The company has now raised total gross proceeds of $757,000 in the financing and is fully closed, after being upsized from the original $500,000.

The final tranche consisted of 5.14 million units at five cents per unit for gross proceeds of $257,000, including $185,000 in debt conversions. Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable at eight cents for a period of two years from issuance. The company previously announced the closing of the initial $500,000 tranche on Nov. 21, 2025, and the financing was upsized due to increased investor interest.

In connection with this final tranche, the company paid $1,600 in cash finders' fees and issued 32,000 broker warrants, exercisable at eight cents for two years.

The intended use of proceeds from the financing is the exploration at the company's 100-per-cent-owned Lake Cargelligo gold project in New South Wales, Australia, as well as marketing and general working capital.

All securities are subject to a four-month-and-one-day hold period, in accordance with applicable securities laws.

Insider participation and National Instrument 62-104 early warning disclosure

Insider participation in the final tranche included subscriptions by a company controlled by Andrew Watson (director, president and chief executive officer) for 680,000 units, a company controlled by Rick Huang (chief financial officer) for 1.02 million units and a company controlled by Penny White (director) for two million units.

As a result of the financing, Ms. White, directly and indirectly, now holds over 10 per cent of the issued and outstanding common shares of the company, triggering early warning reporting requirements under NI 62-104.

Prior to the financing, Ms. White beneficially owned and controlled, directly or indirectly, 8,463,392 common shares, representing approximately 8.22 per cent of the issued and outstanding common shares of the company on a non-diluted basis. Following completion of the financing, Ms. White beneficially owns and controls, directly or indirectly, 10,463,392 common shares, representing approximately 9.67 per cent of the issued and outstanding common shares on a non-diluted basis, and 12,713,392 securities on a partially diluted basis, assuming exercise of 2.25 million convertible securities, representing approximately 11.51 per cent on a partially diluted basis. As Ms. White's holdings exceed 10 per cent on a partially diluted basis, an early warning report is required under NI 62-104. The securities were acquired for investment purposes. Ms. White may acquire or dispose of securities in the future depending on market conditions and other factors. In accordance with NI 62-104, an early warning report will be filed on SEDAR+ within two business days and will be available under the company's issuer profile. A copy may also be obtained from the company at no cost.

Insider subscriptions constitute related party transactions under MI 61-101; however, exemptions from minority approval requirements are available as the fair market value of securities issued to insiders does not exceed 25 per cent of Lancaster's market capitalization. Insider subscriptions were made through debt conversions.

About Lancaster Resources Inc.

Lancaster Resources owns 100 per cent of the Lake Cargelligo gold project in New South Wales, Australia, a district-scale land package of approximately 62,168 hectares with roughly 75 kilometres of highly prospective strike in the Cobar mining district. The project hosts multiple intrusion-related and orogenic gold targets along an 18-kilometre granite sediment contact zone, characterized by widespread multielement pathfinder anomalies and large, untested geophysical and geochemical trends. With no modern geophysics previously completed, Lake Cargelligo offers exceptional discovery potential and is being advanced toward targeted drilling in 2026, supported by an extraordinary technical team with decades of discovery experience in Australia and globally. Lancaster also holds complementary gold, uranium and polymetallic assets in Saskatchewan and Quebec, Canada, providing additional exploration optionality and upside.

We seek Safe Harbor.