Abasca Announces Positive Preliminary Economic Assessment for the Loki Flake Graphite Deposit: After-Tax NPV of US$130 Million and 16.7% IRR Study projects Loki Flake Graphite Deposit as a long-life graphite development project with positive economics; project to
On Wednesday, August 19, 2026 at 7:00AM ET
Abasca Announces Positive Preliminary Economic
Assessment for the Loki Flake Graphite Deposit: After-Tax
NPV of US$130 Million and 16.7% IRR
Study projects Loki Flake Graphite Deposit as a long-life graphite development project with positive economics; project to
advance toward Feasibility Study
SASKATOON, SK / ACCESS Newswire / August 19, 2026 / Abasca Resources Inc. ("Abasca" or the "Company")
(TSXV:ABA) announces positive results from an independent Preliminary Economic Assessment (the "PEA") for its 100%-
owned Loki Flake Graphite Deposit ("Loki Deposit" or the "Project"), approximately 15 kilometres south of the Key Lake mill,
Figure 1. The study projects the Loki Deposit as a long-life graphite development project with an after-tax net present value
(NPV) of US$130 million and 16.7% internal rate of return (Table 1).
The Company's focus will now shift to continuing to acquire the technical data required for preparing a feasibility study ("FS"),
while also obtaining an updated environmental impact assessment and the permits necessary to support future project
advancement.
"Loki has continued to exceed our expectations. We are pleased to reach this significant milestone in our fast ‑ track journey to
develop the deposit and to vest the staged project value. The PEA also provides Abasca with the technical data needed to support
financing and offtake strategic processes, while advancing a long ‑ life graphite development project that aligns with our vision of
establishing a reliable, long ‑ term source of graphite to support the federal and provincial governments' critical ‑ minerals
supply ‑ chain security strategies," said Dawn Zhou, President and CEO of Abasca.
PEA Highlights
Long-Life Graphite Project: 2,750 tonnes-per-day ("tpd") open-pit mining and processing operation with a 19-year mine
life, averaging 66,500 tonnes of graphite concentrate (with an average 95% grade) produced annually and 1.2 million
tonnes of payable graphite over the life of mine. The Project's scale and longevity provide exposure to multiple graphite
price cycles.
Positive Project Economics: Positive economics under the base case graphite price assumptions, generating
approximately US$662 million in cumulative after-tax free cash flow under the base case.
Table 1: Loki Flake Graphite Project PEA Pre-Tax and After-Tax Economic Results Summary.
Graphite Price (US$/tonne) US$1,450/tonne
Pre-Tax Net Present Value (NPV) @ 8% US$161M
Pre-Tax Internal Rate of Return (IRR) 16.6%
After-Tax Net Present Value (NPV) @ 8% US$130M
After-Tax Internal Rate of Return (IRR) 16.7%
Note: Project economics are presented on an unleveraged basis and do not assume project debt or other financing arrangements.
Description of the PEA
The PEA outlines a conceptual development scenario for the Project based on the updated Mineral Resource Estimate (see
"Mineral Resources" below), incorporating conventional open-pit mining and onsite graphite concentrate recovery through a
2,750 tonne-per-day processing facility.
The PEA was prepared by Tetra Tech Canada Inc. ("Tetra Tech") in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101"). The geology and mineral resources sections of the PEA were prepared by
Understood Mineral Resources Inc. ("UMR").
This PEA is preliminary in nature. It includes Inferred Mineral Resources that are considered too speculative geologically to have
economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that
the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A technical report supporting the PEA will be filed on SEDAR+ (www.sedarplus.ca) and on the Company's website within 45
days of this news release.
Project Overview
The Loki Flake Graphite Deposit is located approximately 15 kilometres south of the Key Lake mill. Provincial Highway 914, a
north-south all-weather highway in Saskatchewan, crosses the project, providing ideal access. The Project consists of 12
contiguous claims (23,974 hectares or approximately 240 sq. km) which were staked during 2011 to 2012 and have been held and
explored by a private company ("SaskCo") until the end of 2022. Abasca subsequently acquired the Project by reverse takeover
leading to holding 100% interest in the Project.
The Loki Flake Graphite Deposit is underlain by the prospective uranium hosting rocks of the Wollaston-Mudjatik contacting
zone (WMCZ) in the southeastern Athabasca Basin. The world's largest high-grade uranium deposits are associated with the
unconformity between the Athabasca Basin and the Wollaston-Mudjatik basement as well as strongly graphitic fault zones. Most
of the uranium occurrences and deposits associated with the Athabasca Basin are located near the boundary between the Mudjatik
and Wollaston domains as either unconformity-related or basement-hosted type. The Project is located in the southern strike
extent of these deposits and in the same regional magnetic low structure that hosts them.
On July 14, 2026, Abasca announced an updated Mineral Resource Estimate (the "MRE") for the Loki Flake Graphite Deposit.
The pit-constrained MRE conforms to the Reasonable Prospects of Eventual Economic Extraction (RPEEE) requirements of NI
43-101 and includes an Indicated resource of 6.99 Mt at 8.27 % Cg in addition to Inferred resource of 15.83 Mt at 6.93 % Cg1.
PEA Economic Results
The Loki Deposit's PEA Economic Results are presented in Table 2. All dollar figures are expressed in US dollar and all units in
metric, unless otherwise noted.
The PEA is preliminary in nature. It includes Inferred Mineral Resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty
that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
[1] Please refer to the Company's news release dated July 14, 2026 and titled: "Abasca Increases Loki Flake Graphite Resource
and Confirms Second Mineralized Trend at Thor Zone"
Figure 1: Map showing the location of the Key Lake South Project that hosts the Loki Flake Graphite Deposit
Table 2: Loki Flake Graphite Project PEA Economic Results
Description Unit Value
Metal Price
Graphite Price (Average) US$/t 1,450
Production
Mine Life Year 19
Mill Feed Tonnage, Life of Mine (LOM) Mt 17.9
Mill Feed Grade, Life of Mine (LOM) % Cg 7.27
Concentrate Grade, Life-of-mine Average % Cg 95.0
Graphite Recovery to Concentrate % 92.3
Graphite Produced, Life of Mine (LOM) dry tonnes 1,263,000
Annual dry tonnes 66,500
Operating Costs, Life of Mine (LOM) US $M 828
Unit US$/t proc. 46.34
Operational Revenue US $M 940
Capital Costs
Initial Capex US $M 216
Sustaining US $M 64
Closure & Reclamation US $M 27
Total Capital Costs US $M 307
Economic Results
Discount Rate % 8%
Pre-Tax Unlevered Free Cash Flow (UCF) US $M 633
Description Unit Value
Pre-Tax Net Present Value (NPV) @ 8% US $M 161
Pre-Tax Internal Rate of Return (IRR) % 16.6%
Pre-Tax Simple Payback Year 6.2
After-Tax Unlevered Free Cash Flow (UCF) US $M 477
After-Tax Net Present Value (NPV) @ 8% US $M 130
After-Tax Internal Rate of Return IRR % 16.7%
After-Tax Simple Payback Year 4.7
Notes
1. Initial Capex represents upfront expenditures to construct and commission the mine, plant, and supporting infrastructure.
2. Sustaining Capex represents ongoing capital expenditures required to maintain production during the life of mine.
3. Payback represents years from start of commercial production to achieve cumulative positive after-tax free cash flow,
including sustaining capital.
4. Exchange rate assumption: $0.72 USD per $1.00 CAD.
5. Non-GAAP financial measures are presented for additional information and benchmarking purposes only. See "Use of
Non-GAAP Financial Measures."
Capital and Operating Costs
Initial CAPEX: US$216M, including contingency of US$24.3M and US$22.5M mining initial operating costs and
equipment lease downpayment.
Sustaining Capital and Closure Costs: US$56.4M from Year 1 to Year 19, followed by a 4-year period of closure and
reclamation.
Operating Costs: US$46.34/t processed, including mining and waste management (44%), processing (28%), G&A and site
services (27%), and interest on mining equipment lease (1%).
Mineral Resources
An updated MRE, effective date April 23, 2026, was prepared by UMR in accordance with CIM and NI 43-101 Guidelines and
replaces the previous mineral resource estimate with an effective date of April 10, 2025, Table 3.
The updated MRE incorporates the current geological interpretation and forms the basis of the 19 year mine plan evaluated in the
PEA.
Table 3: Loki Flake Graphite Project PEA Mineral Resource Statement, effective date April 23, 2026.
Classification Cg Grade
Cut-off (%) Tonnes (Mt) Cg Grade (%) Contained
Cg (Mt)
Indicated 2.30 6.99 8.27 0.58
Inferred 2.30 15.83 6.93 1.10
Notes
1. The reporting standard for the Mineral Resource Estimate uses the terminology, definitions and guidelines given in the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves
(May 2014) as required by NI 43-101.
2. Reported Mineral Resources are constrained to a conceptual pit-shell above a cut-off grade of 2.30% Cg.
3. Numbers may not add up due to rounding.
4. The effective date of this Mineral Resource estimate is April 23, 2026.
5. The qualified person knows of no environmental, permitting, legal, title, taxation, socio-economic, marketing, political or
other relevant factors that may materially affect the Mineral Resource Estimate in this release.
6. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
Mining Method
The Company plans to develop the Loki Flake Graphite Project using conventional open-pit mining methods, including drilling,
blasting, loading, and hauling with conventional mining equipment. Material will be drilled and blasted, then loaded into diesel-
powered haul trucks using a fleet of hydraulic shovels and front-end wheel loaders.
To identify the optimal pit size and mining sequence, Tetra Tech employs the Lerchs-Grossmann (LG) algorithm to evaluate the
net value of individual blocks within the block model. An assumed graphite concentrate price of US$1,450 per tonne has been
applied. Life of mine (LOM) operating costs were estimated from both first principles and based on similar projects or
operations. Figure 2 shows the PEA mine production plan.
Figure 2: Loki Flake Graphite Deposit PEA Mine Production Plan
The life-of-mine plan comprises 17 years of active mining operations followed by two years of stockpile processing. Mining is
conducted at a consistent rate of 10.0 Mt of material annually during the first seven years and slowly diminishing from Y8 to
Y17, with a LOM average strip ratio of 6.1:1. The process plant is designed for a nominal throughput of 2,750 tonnes per day
(approximately 1.0 million tonnes per year). Average payable graphite production over the 19-year mine life is estimated at
approximately 1.23 million dry tonnes per year. Mill throughput is planned at 75% of nameplate capacity in Year 1, 85% in Year
2, and 100% from Year 3 onward, allowing for a controlled start-up and optimization of plant performance. The mill feed grade
fluctuates between 6% to 8% from Year 1 to Year 17, before reaching 4% to 5% during the processing of the stockpiled material
from Year 18 to Year 19.
Processing
A preliminary test program for recovering the graphite from the Abasca deposit was conducted by SGS Lakefield during 2025
and 2026. The test program included chemical characterization, mineralogical analyses, grindability testing, and flotation testing,
graphite concentrate and flotation tailings characterisation.
The test results indicate that the samples respond well to conventional flotation concentration. The flowsheet uses separate
flotation with staged regrinding for coarse and fine fractions respectively. The final concentrates are expected to be approximately
95% or higher.
Based on the test work results, a preliminarily optimized flowsheet was developed for this study. The process flowsheet is
designed for 2,750 tpd and follows a conventional flotation circuit with staged regrinding process to produce sized high-grade
graphite concentrate, which will be further processed at an offsite purification facility. The processing plant (Figure 3 shows
simplified process flow diagram) will consist of the following:
A run-of-Mine (ROM) mill feed stockpile,
A primary crusher operating in open circuit,
A secondary crusher operating in closed circuit with a vibrating screen,
A crushed mill feed stockpile with reclaim feeders,
A ball mill grinding circuit operating with flash flotation and a classification hydrocyclone cluster,
A rougher flotation circuit comprising rougher and rougher-scavenger flotation, followed by a rougher-scavenger tailings
dewatering circuit, including thickening and filtration processes to generate tailings filter cakes for tailings dry stacking at a
lined tailings management facility (TMF) to mitigate the impacts of tailings acid generation potentials on environment,
A rougher concentrate upgrading circuit comprising
one-stage polishing regrinding followed by one stage of cleaner flotation,
second-stage polishing mill followed by three stages of cleaner flotation,
A fourth-cleaner concentrate sizing circuit to separate the upgraded rougher concentrate into coarse and fine graphite
concentrate streams,
A coarse concentrate regrind mill, followed by four additional stages of cleaner flotation (5th to 8th cleaners) to produce a
final coarse graphite concentrate,
A fine concentrate regrind mill, followed by five additional stages of cleaner flotation (5th to 9th cleaners) to produce a
final fine graphite concentrate,
A concentrate dewatering and product handling circuit, including concentrate thickening, filtration, drying, final product
sizing, and packaging.
Figure 3: Loki Flake Graphite Deposit PEA Simplified Process Flowsheet
Infrastructure
The Project benefits from existing transportation infrastructure, proximity to provincial power network, and favourable site
characteristics that support future development, including:
Road Access: The Loki Flake Graphite Deposit is located approximately 15 kilometres south of the Key Lake mill.
Provincial Highway 914, a north-south all-weather highway in Saskatchewan, crosses the project, providing ideal access.
Power: The provincial power grid is 15 km from the Loki Flake Graphite Deposit, which can provide long-term cost-
effective and reliable electrical power for the Project.
Water: Several surface water bodies are located near the project site and are expected to provide suitable water sources for
future operations, subject to detailed engineering and permitting.
Waste Rock and Tailings Co-deposition Facility (WRTCF): The WRTCF was designed to accommodate 17.9 Mt of
tailings and 108.4 Mt of waste rock over the life of the mine. The WRTCF will consist of co-deposited dry stacked tailings
and waste rock, providing advantages over the conventional slurry Tailings Management Facility design.
Camp and Services: Existing accommodation camps nearby have the potential to support construction and operations.
Camp services are expected to be provided by third-party contractors, creating potential business and employment
opportunities for nearby Indigenous communities.
Overall Site General Arrangement: The overall site arrangement is presented in the Figure 4.
Figure 4: Loki Flake Graphite Deposit PEA Overall Site General Arrangement Plan.
Environmental, Social, and Permitting
In 2025, Abasca engaged CanNorth Environmental Services to conduct environmental studies on the Project. The purpose of the
studies was to initiate data collection for components that require baseline datasets, specifically hydrology, water chemistry, and
bathymetry to support a future Environmental Impact Assessment. Studies and data collection will continue into 2026 and 2027,
including further work on aquatic, terrestrial and heritage resources as well as work on meteorological, hydrogeological and
geochemical conditions. This work will advance project development and support future submissions to meet regulatory
requirements.
Opportunities and Exploration Potential
The PEA presents a conceptual development scenario for Loki Deposit based on current information. The following opportunities
may be evaluated in future technical studies to further optimize the Project's technical and financial performance.
Power Optimization
SaskPower funds community initiatives, educational programs, and clean energy development across Saskatchewan to align with
its strategic utility goals. As the province's principal electric utility, the crown corporation provides financial backing through
corporate sponsorships, capital grants, and energy-efficiency programs. Abasca will initiate business opportunity discussions with
SaskPower for funding power supply infrastructure for the project.
Government and Critical Minerals Funding Opportunities
Graphite is included on Canada's and Saskatchewan's critical minerals list. Abasca intends to evaluate available federal and
provincial funding, infrastructure and strategic investment programs that may support future engineering, infrastructure
development and project advancement.
Closure Cost Refinement
The PEA applies a conservative estimate for closure costs. Additional geochemical and hydrological and site-specific engineering
studies may allow estimates to be further refined in subsequent technical studies.
Mineral Resource Conversion to Mineral Reserve
There exists the opportunity to continue drilling the Loki Deposit to upgrade the Classification to Indicated by Infill drilling and
to expand the resource, providing opportunities to further evaluate and potentially enhance long-term project value through future
exploration.
Next Steps/Path Forward
Advancing Engineering
The completion of the PEA establishes a strong technical foundation for the next stage of engineering. The Company believes the
Project is well positioned to advance to feasibility-level engineering.
Future work is expected to focus on metallurgical optimization, geotechnical and hydrogeological investigations, detailed mine,
infrastructure and tailings engineering, environmental studies, and continued refinement of the Project's capital and operating cost
estimates.
Engineering Support Drilling
The Company anticipates evaluating a targeted drilling program to support feasibility-level engineering. The program would be
expected to focus primarily on infill drilling, geotechnical investigations and metallurgical sample collection, and mineral
resource expansion.
Environmental & Permitting
In parallel with the Feasibility Study, Abasca intends to advance the environmental assessment process and obtain the regulatory
approvals required to support future Project development, building on the substantial environmental studies and technical work
completed during the previous Environmental Assessment process. The Company will continue to engage with the Indigenous
Groups, regulators and local stakeholders throughout this process.
Strategic Development
The Company will continue evaluating opportunities to advance the Project through strategic partnerships, government-supported
critical mineral initiatives and engagement with potential customers and other industry participants.
Study Notes
The PEA was prepared by Tetra Tech Canada Inc. with an effective date of August 19, 2026. The study is based on an updated
Mineral Resource Estimate with an effective date of April 23, 2026, prepared in accordance with the CIM Definition Standards
and NI 43-101.