File: Attachment 25.12.10 PR Final Closing of Financing.pdf

December 10, 2025

LANCASTER RESOURCES ANNOUNCES FINAL CLOSING OF $757,000 FINANCING -- UPSIZED FROM ORIGINAL $500,000

Vancouver, British Columbia - Lancaster Resources Inc. (CSE:LCR | OTC:LANRF | FRA:6UF0) (the "Company" or "Lancaster") is pleased to announce the final closing of its non-brokered private placement (the "Financing"). 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 5,140,000 units at $0.05 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 $0.08 for a period of two years from issuance. The Company previously announced the closing of the initial $500,000 tranche on November 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 finder's fees and issued 32,000 broker warrants, exercisable at $0.08 for two years.

The intended use of proceeds from the Financing is the exploration at the Company's 100%-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 a day hold period, in accordance with applicable securities laws.

Insider Participation and NI 62-104 Early Warning Disclosure

Insider participation in the final tranche included subscriptions by a company controlled by Andrew Watson (Director, President & CEO) for 680,000 units, a company controlled by Rick Huang (CFO) for 1,020,000 units, and a company controlled by Penny White (Director) for 2,000,000 units.

As a result of the Financing, White, directly and indirectly, now holds over 10% of the issued and outstanding common shares of the Company, triggering early-warning reporting requirements under NI 62-104. Prior to the Financing, White beneficially owned and controlled, directly or indirectly, 8,463,392 common shares, representing approximately 8.22% of the issued and outstanding common shares of the Company on a non-diluted basis. Following completion of the Financing, White beneficially owns and controls, directly or indirectly, 10,463,392 common shares, representing approximately 9.67% 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 2,250,000 convertible securities, representing approximately 11.51% on a partially diluted basis. As White's holdings exceed 10% on a partially diluted basis, an Early Warning Report is required under National Instrument 62-104. The securities were acquired for investment purposes. White may acquire or dispose of securities in the future depending on market conditions and other factors. In accordance with National Instrument 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% of Lancaster's market capitalization. Insider subscriptions were made through debt conversions.

About Lancaster Resources Inc.

Lancaster Resources owns 100% of the Lake Cargelligo Gold Project in New South Wales, Australia, a district-scale land package of ~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 multi-element 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.

Andrew Watson, President & Chief Executive Officer, Lancaster Resources Inc. andrew@lancaster-resources.com Tel: 604 923 6100

www.lancaster-resources.com

The Canadian Securities Exchange has not reviewed, approved nor disapproved the contents of this news release.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or Lancaster's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Lancaster's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, the ability of Lancaster to execute its exploration plans, raise capital, retain key personnel, identify, acquire, explore, and develop high-quality mineral-rich properties constitutes forward-looking information. Actual results and developments may differ materially from those contemplated by forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information. The statements made in this press release are made as of the date hereof. Lancaster disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.