Lancaster finds new vein system at Lake Cargelligo

Executive Summary

• Lancaster Resources Inc. released results from fieldwork conducted in December 2025 at its 100%-owned Lake Cargelligo gold project in New South Wales, Australia.
• Significant progress was made in securing landowner access agreements, facilitating future geophysical and drilling programs.
• New geological mapping identified a large, previously unrecognized quartz vein system at the Greater Avoca prospect extending over 1.25 km of strike, and expanded the Greater Josephine Moulder prospect with widespread quartz veining and hydrothermal alteration.
• The company is preparing for mid-2026 exploration programs, including airborne magnetic surveys, induced polarization (IP) surveys, and reverse circulation (RC) drilling at Josephine Moulder.

Key Details

• Project Tenure: 100% owned Lake Cargelligo gold project, covering approximately 62,300 hectares in NSW, Australia.
• Land Access: Multiple landowners met in person; significant progress made on access agreements to facilitate geophysical and drilling programs. Final documents being prepared for drill approval applications.
• Prospective Strike Length: 75 kilometers of prospective granite-sedimentary contact strike length within Lancaster's tenure, largely unexplored.
• Greater Josephine Moulder Prospect:
  • Historical exploration limited to a 400-meter outcropping portion.
  • Auger geochemical anomalies (gold-silver-tellurium-bismuth-arsenic-molybdenum-antimony) identified, with a geochemical footprint extending over >2 km of strike.
  • Follow-up reconnaissance identified widespread quartz veining and hydrothermal alteration, expanding the prospect.
  • 18 new rock chip samples collected; assay results expected in 2-4 weeks.
  • Previous rock chips (reported Oct 2025) returned up to 31.5 g/t gold and 114 g/t silver.
  • Planned Drilling: Phase 1 reverse circulation (RC) drill program planned for the main Josephine Moulder vein (15-20 RC holes on a 60-by-80-meter grid over ~365-meter strike length) to compare with historical intercepts, undertake metallurgy testwork, and advance resource modeling.
  • Planned Surveys: Proposed phase 1 gradient array and pole-dipole induced polarization survey over ~3.2 km of strike to assess quartz veins/sulphide accumulations.
• Greater Avoca Prospect:
  • New Discovery: Follow-up mapping of August 2025 reconnaissance identified a large new vein system subcropping/outcropping discontinuously over >1.25 km of strike. This is the largest zone of veining recognized at the project to date.
  • Vein Characteristics: Northeastern portion dominated by white, milky quartz (weak to moderate veinlets/networks swelling to coherent veins/breccias). Southwestern portion consists of massive, brecciated, and comb-style textures with iron oxides.
  • Structural Control: Veining controlled by the Avoca structure and Avoca splay fault, trending obliquely to the granite-sedimentary contact. The system remains open under sand cover toward the contact in the southwest.
  • Historical Sampling: Limited historical rock chip sampling at old Avoca line of workings (up to 13m deep, 250m trend) returned peak results of 3.66 g/t Au.
  • August 2025 Reconnaissance: Identified a new zone of quartz veinletting ~800m north of Avoca workings with anomalous results: up to 0.2 g/t Au, 12 ppm Bismuth, 85 ppm Arsenic, and 130 ppb Tellurium.
  • New Sampling: 17 new rock chips collected; assay results expected in 2-4 weeks.
  • Future Work: Pending assays, exploration will include detailed airborne magnetic and ground-based IP surveying ahead of drill testing.
• Lidar Targets: Fieldwork guided by lidar data interpretation, identifying targets LT1-4. LT1 accessible portions showed encouraging geological observations.
• Upcoming Programs (Mid-2026):
  • Further geological mapping and sampling.
  • Detailed airborne magnetic surveying.
  • Expanded lidar coverage.
  • Ground-based induced polarization surveying.
  • Resource drilling at Josephine Moulder.
  • Reconnaissance drilling at other targets.
  • In-depth review of existing geophysical data and targeting study by independent consultancy nearing completion.

Notable Quotes

• "The Lancaster team is extremely optimistic with the refined and focused exploration progress made at Lake Cargelligo. In advance of rock chip assays, geological observations support the presence of a series of large-scale quartz veins/breccia that have the potential to host high-grade gold and silver mineralization at the project. They support our exploration model and path forward as we look to unlock district-scale gold and precious metal mineralization. We remain focused on building the value of this highly transformative property," said Andrew Watson, president and chief executive officer of Lancaster Resources.