Mr. Andrew Watson reports

LANCASTER RESOURCES COMPLETES LAND ACQUISITION AT LAKE CARGELLIGO, UPDATES 2026 EXPLORATION PROGRAM, AND REVISES ANNOUNCED FINANCING

Lancaster Resources Inc. has completed the additional land acquisition at Lake Cargelligo as previously announced. This additional claim block, 100 per cent owned by Lancaster, has been granted a four-year term by the State of New South Wales.

The exploration licence, EL9880, added an additional approximately 33,400 hectares of land base immediately adjacent to the original Lake Cargelligo property. The total combined claims are approximately 62,300 ha.

Lake Cargelligo is a highly prospective greenfield gold-silver project with significant potential for both intrusive-related gold systems and discrete lode style mineralization.

"Lancaster is extremely pleased to close the acquisition of these additional mineral claims. The new exploration licence properties significantly increase our exploration prospects in Lake Cargelligo," said Andrew Watson, president and chief executive officer of Lancaster Resources.

2026 exploration program update

Lancaster is also continuing to advance exploration at both the Lake Cargelligo gold and silver project in Australia and the Lac Iris polymetallic project in Quebec.

At Lake Cargelligo, the company will continue working with various stakeholders and landowners to complete land access agreements for drilling and geological site work, a geophysical drone magnetic, and ground-based induced polarization program at Josephine Moulder and submitting drilling applications to the state. The geophysical work will be a highly targeted program near historical drill locations to better refine the drilling targets and size of the mineralization zone. Lancaster is targeting to be drill ready by Q4 2026 at Lake Cargelligo.

At Lac Iris, the company is building an initial field exploration program over the claim blocks along with a lidar/geophysical drone magnetics program in the fall of 2026. This will help shape the follow up exploration program at Lac Iris. Recent results from nearby exploration claims, including Power Metallic at Nisk and Lion projects, support the prospectivity of broader regional mineralization. The company notes that mineralization on adjacent properties is not necessarily indicative of mineralization on the company's Lac Iris property.

Financing update

Lancaster is also revising its previously announced non-brokered private placement (see news release dated March 10, 2026). The revised offering replaces the previously announced offering of 16 million common shares at five cents per share with an offering of units as described below. The revised offering is a non-brokered private placement for aggregate gross proceeds of up to $800,000. The offering will consist of up to 20 million units at a price of four cents per unit, each unit consisting of one common share in the capital of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to purchase one additional common share at an exercise price of 12 cents per share for a period of one year from the date of issuance.

Finders' fees of up to 8 per cent cash may be paid to qualified finders in connection with the offering. All securities issued as part of the offering will be subject to a statutory hold period of four months and one day from the issuance date.

The company intends to use the net proceeds of the offering to finance exploration activities at its Lake Cargelligo and Lac Iris projects, and for general working capital purposes.

Closing of the offering is expected to take place on or about May 22, 2026.

Andrew Watson, PEng, president and chief executive officer and a director of the company, is a qualified person as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Watson has reviewed and approved the scientific and technical information contained in this news release. Mr. Watson is a director and the president and CEO of Lancaster, and is not independent of the company.

About Lancaster Resources Inc.

Lancaster Resources is a Canadian exploration company advancing a diversified portfolio of gold and silver exploration projects in established mining jurisdictions. The company holds a 100-per-cent interest in the Lake Cargelligo gold project in New South Wales, Australia, which is prospective for both gold and silver mineralization, covering approximately 62,300 hectares with a history of drilling and exploration and multiple high-priority targets. In Canada, Lancaster's assets include the Lac Iris polymetallic project in Quebec's James Bay region and the Piney Lake gold project in Saskatchewan. Lancaster's portfolio provides exposure to gold, silver and polymetallic exploration opportunities across Tier 1 jurisdictions.

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