Private Placement Update

CALGARY, ALBERTA (June 16, 2025) - Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX, LSE: TXP) provides the following update regarding its previously announced private placement.

Further to the Company's May 8, 2025 announcement regarding a £15.375 million private placement arranged by Portillion Capital and OAK Securities, the Company advises that £10.325 million of the gross proceeds remains outstanding. Touchstone has been informed that Portillion Capital and OAK Securities are finalizing documentation related to the settlement of proceeds from certain institutional investors. The Company expects to receive the outstanding funds on or before the close of business on June 20, 2025.

To date, the Company has received £5.05 million in gross proceeds, with the corresponding settlement completed through the issuance of new Touchstone common shares of no-par value. These proceeds have been allocated to the ongoing Cascadura drilling program and for general working capital purposes. The delay in receiving the remaining funds has not impacted the Company's current capital activities.

On May 16, 2025, the Company issued 75,000,000 new common shares to the settlement agent acting on behalf of OAK Securities. Of these, 24,636,586 common shares have been distributed to investors. The remaining 50,363,414 shares are being held by the settlement agent and will be issued upon receipt of the outstanding funds.

The Toronto Stock Exchange has extended its conditional approval of the private placement, permitting the Company to complete the offering on or before June 20, 2025.

Touchstone will provide a further update in due course.

Touchstone Exploration Inc.

Touchstone Exploration Inc.

Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4405

Scott Budau, Chief Financial Officer

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Tom Knibbs Tel: +44 (0) 207 408 4090

Canaccord Genuity (Joint Broker)

Adam James / Charlie Hammond Tel: +44 (0) 207 523 8000

FTI Consulting (Financial PR)

Nick Hennis / Ben Brewerton / Lucy Wigney Tel: +44 (0) 203 727 1000

Advisory Regarding Forward-Looking Statements

Specifically, this announcement includes, but is not limited to, forward-looking statements relating to the Company's business plans, strategies, priorities and development plans; the expected completion of the private placement and the timing thereof; and Touchstone's current and future financial position, including the sufficiency of resources to fund future capital expenditures and maintain financial liquidity. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.