Abasca Resources Provides Exploration Update at its Loki Flake Graphite Deposit and Granting Stock OptionSASKATOON, SK / ACCESS Newswire / December 16, 2025 / Abasca Resources Inc. ("Abasca" or the "Company") (TSXV:ABA) is pleased to provide an update on the exploration activities at its 100%-owned Key Lake South (KLS) Project (Figure 1). Exploration in 2025 was comprised of two drill programs at the Loki Flake Graphite Deposit ("Loki Deposit") to support expansion and upgrading of resource estimates which the Company anticipates to complete in the first half of 2026. The deposit currently has a 11.31 Mt pit-constrained inferred flake graphite resource at 7.65 % Cg1 (the "MRE") which was released earlier this year with an effective date of April 10, 20251, derived principally from the results of the 2024 summer drill program, (Figure 2)."Building on the favorable geological setting, the existing mineral resource base, and ongoing technical work - including the environmental baseline study, metallurgical testwork, geotechnical drilling, and initiation of open-pit mining design - Abasca is now turning its attention to preparing a Preliminary Economic Assessment (PEA) in mid-2026 and then transition to preparing a Pre-Feasibility Study (PFS) in late 2026. We believe these integrated efforts will accelerate the Loki Deposit's pre-development timeline, mitigate project risks, and enhance asset value. Furthermore, this work aligns with the critical mineral strategies of Saskatchewan and Canada, thereby reinforcing the North American graphite supply chain." stated Dawn Zhou, President and CEO.The winter 2025 program (see Company's press release dated November 12, 2025 for results) focused on expansion of the MRE toward the northwest and southeast, extending the strike-length of graphite mineralization at inferred-spaced drilling by 700 m. The summer 2025 program focused on in-fill drilling of the MRE and comprised 6,691 m over 35 holes (Figure 2 and 3), inclusive of the 1,103 m from the 10 geotechnical drillholes completed at the beginning of the summer (refer to the Company's release on September 8, 2025). Locations and orientations of drillholes of the in-fill program are listed in Table 1.The in-fill drilling at the Loki Deposit continued to provide strong graphite intersections like those seen in the 2024 drilling that made up the MRE. All drillholes successfully intersected mineralization and support the existing MRE wireframe modeling. Assays from the summer program are pending.Brian McEwan, Vice-President of Exploration commented "We had a very successful year completing the extension and in-fill drilling programs at the Loki Deposit. The strike length we've added to the Loki Deposit will add significant tonnage in addition to the confidence the summer in-fill results. These drill programs reaffirm our geological interpretations and our continued belief in the value of the project in Saskatchewan. Graphite is a critical mineral, and we will continue to advance the Loki Deposit toward development."The Company is planning a winter 2026 drill program to further expand the Loki Flake Graphite Deposit toward the southeast along with further geotechnical and hydrogeological work. Additionally, drilling will take place along Thor Zone to evaluate the extents of this parallel zone that is only a few hundred metres north of the Loki Deposit (Figure 2).Collected samples were sent to SRC Geoanalytical Laboratories in Saskatoon, Saskatchewan, an independent laboratory accredited under ISO/IEC 17025:2017 for preparation and ICP-MS multi-element analysis, boron by fusion as well as graphite content (% Cg) and total sulphur by LECO. Samples were collected in accordance with industry-standard quality assurance / quality control practices and included the insertion of blanks, standard reference materials, and repeats into the sample stream at regular intervals. Samples were also collected for in-field and lab density measurements at regular intervals and through the mineralized zones.The Company also announces the grant of 3,875,000 incentive stock options to its directors and officers (the "Options"), with each Option entitling the holder to purchase one common share of the Company for a period of 5 years at an exercise price of $0.07 per share.For more information on the Loki Flake Graphite Deposit and an overview of the Key Lake South Project, please visit the Company's website at https://www.abasca.ca.1 Please refer to the technical report dated May 29, 2025, with an effective date of April 10, 2025 and titled "Technical Report on the Key Lake South Project with Initial Mineral Resource Estimate for the Loki Flake Graphite Deposit, Saskatchewan, Canada" filed under the Company's profile on the SEDAR+ website for further information about the resource estimate. Figure 1: Map of the Key Lake South Project area showing the location of the Loki Flake Graphite Deposit and other exploration target areas. Figure 2: Map of the