Mr. Andrew Watson reports

LANCASTER RESOURCES PROVIDES EXPLORATION UPDATE FOR LAKE CARGELLIGO AND CORPORATE UPDATE

Lancaster Resources Inc., as previously announced, has completed the additional land acquisition at Lake Cargelligo. 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.

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.

Since acquiring the Lake Cargelligo project in 2025, Lancaster has rapidly advanced its geological understanding through technical studies, field reconnaissance, geochemical sampling, property expansion and geophysical targeting initiatives.

The project has evolved from an initial 28,768-hectare exploration licence in spring 2025 into a district-scale land package covering approximately 62,300 hectares, positioning Lancaster to explore multiple gold-silver (Au-Ag) systems across a large and underexplored mineralized corridor.

With historical rock chips showing grades of up to 204 g/t Au and 273 g/t Ag, and recent Lancaster assays up to 31.5 g/t Au and 114 g/t Ag, the opportunity for Lancaster to identify a district-scale Au-Ag discovery in one of Australia's premier mining jurisdictions is significant. Approximately 75 kilometres of prospective granite-sedimentary contact occurs within Lancaster's tenure with much of this zone unexplored due to widespread but thin sand cover.

Work completed by Lancaster to date has allowed the company to create a comprehensive exploration program that includes significant geophysical surveying and additional mapping and sampling to identify priority targets for high-impact drilling.

Of highest priority to advance drill targeting, Lancaster has designed an induced polarization (IP) survey over the Greater Josephine Moulder prospect. This area, which covers greater than 500 ha including greater than three km of prospective granite-sedimentary contact including the 400 m long Josephine Moulder vein-breccia outcrop, will include three gradient array IP grids (GAIP) and a minimum of five pole-dipole IP (PDIP) section lines.

IP surveying will measure bedrock conductivity, resistivity and chargeability over the survey area aiming to identify the presence of sulfide accumulations and/or quartz veining in the near surface to approximately 300 to 400 m depth. Should such features be identified, they would rank as high-priority drill targets.

In addition to IP surveying, the company is reviewing options to acquire high-resolution magnetic data that will aid structural interpretation and assist drill targeting by identifying zones of hydrothermal alteration. Magnetic surveying could include high-resolutionz airborne magnetics-radiometrics over a large portion of the project hosting the approximately 75 km of prospective granite-sedimentary strike. Alternatively, ultrahigh-resolution drone magnetics may be undertaken over the Greater Josephine Moulder and Greater Avoca prospects.

While airborne magnetics-radiometrics would allow exploration to advance over much larger areas of the project, the ultrahigh-resolution drone magnetic option would result in a quality data set to expedite initial drilling by Lancaster at its priority prospects. Drone magnetics over both the Greater Josephine Moulder and Greater Avoca prospects would, collectively, cover greater than 4,000 ha and allow drill targeting over greater than 12 km of highly prospective granite-sedimentary strike.

Additional campaigns of geological mapping and sampling are planned by Lancaster over newly identified prospects resulting from the 2025 work programs. This work is planned to occur in parallel with IP and magnetic surveying and progression of drill approvals. Lancaster looks forward to its initial drill campaign at Lake Cargelligo and anticipates this will include follow up drilling of historical results at Josephine Moulder and first pass tests of new targets that are expected to be defined by the company's proposed geophysical surveying.

Corporate update

Lancaster continues efforts to close the previously announced financing. The company has received subscription agreements and subscription funds for an initial tranche of the private placement. While financing conditions for junior resource issuers remain challenging, the company remains optimistic about closing the private placement.

The company expects financial and audit work to be completed in mid July.

Effective June 22, 2026, Rob Heaslop has resigned from the company's board of directors. The company thanks Mr. Heaslop for his efforts in supporting and guiding Lancaster.

The company has also decided not to continue exploration at the Catley Lake and Centennial East uranium assets in the Athabasca basin. These mineral claims have been relinquished back to the province of Saskatchewan. No further costs or exploration are expected.

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.

Sampling and historical data: Rock chip and grab samples referenced in this news release are selective by nature and the grades reported (including up to 204 g/t Au and 273 g/t Ag from historical sampling and up to 31.5 g/t Au and 114 g/t Ag from recent company sampling) are not necessarily representative of the mineralization across the company's properties. The historical results were compiled from the noted references and have not been independently verified by the company's qualified person; they should not be relied upon as an indication of the mineralization or exploration potential of the company's properties and are not treated as current mineral resources or mineral reserves.

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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