Abasca Resources continues drilling at Loki

Executive Summary

• Abasca Resources provided an exploration update on its 100%-owned Key Lake South (KLS) project, specifically the Loki flake graphite deposit, detailing 2025 drilling activities aimed at expanding and infilling the mineral resource estimate (MRE).
• The company outlined its development timeline, targeting a Preliminary Economic Assessment (PEA) in mid-2026 and a Prefeasibility Study (PFS) in late 2026, supported by ongoing technical work including metallurgical testing and mining design.
• The company also announced the grant of 3,875,000 incentive stock options to directors and officers, a routine administrative action that does not alter the material nature of the exploration update.

Key Details

• Resource Estimate Context: The Loki deposit currently holds a 11.31-million-tonne pit-constrained inferred flake graphite resource at 7.65% Cg (graphitic carbon), effective April 10, 2025, derived principally from the 2024 summer drill program.
• Winter 2025 Program: Focused on expanding the MRE toward the northwest and southeast, extending the strike length of graphite mineralization at inferred spaced drilling by 700 metres.
• Summer 2025 Program:
  • Focused on infill drilling of the MRE.
  • Total drilled: 6,691 metres over 35 holes.
  • Included 1,103 metres from 10 geotechnical drill holes completed at the start of the summer.
  • All drill holes successfully intersected mineralization, supporting the existing MRE wireframe modelling.
  • Assays from the summer program are currently pending.
• Future Plans:
  • Winter 2026: Planned drill program to further expand the Loki deposit toward the southeast, along with geotechnical and hydrogeological work.
  • Thor Zone: Drilling will evaluate the extents of this parallel zone, located a few hundred metres north of the Loki deposit.
  • Development Studies: Preparation of a Preliminary Economic Assessment (PEA) in mid-2026, followed by a Prefeasibility Study (PFS) in late 2026.
• Technical Work: Ongoing activities include environmental baseline studies, metallurgical test work, geotechnical drilling, and initiation of open-pit mining design.
• Laboratory Analysis: Samples sent to SRC Geoanalytical Laboratories (Saskatoon, Sask.) for ICP-MS multielement analysis, boron by fusion, graphite content (% Cg), and total sulphur by LECO. QA/QC practices included blanks, standard reference materials, repeats, and density measurements.
• Stock Option Grant:
  • Granted 3,875,000 incentive stock options to directors and officers.
  • Exercise price: $0.07 per share.
  • Term: Five years.

Notable Quotes

• Dawn Zhou, President and CEO: "Building on the favourable geological setting, the existing mineral resource base and ongoing technical work... Abasca is now turning its attention to preparing a preliminary economic assessment (PEA) in mid-2026 and then transition to preparing a prefeasibility study (PFS) in late 2026. We believe these integrated efforts will accelerate the Loki deposit's predevelopment timeline, mitigate project risks and enhance asset value."
• Brian McEwan, Vice-President of Exploration: "We had a very successful year completing the extension and infill 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 infill results. These drill programs reaffirm our geological interpretations and our continued belief in the value of the project in Saskatchewan."