Initial Results of Fundraise

IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN ‎THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH ‎INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE ‎INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL ‎THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.‎

TOUCHSTONE EXPLORATION INC.

INITIAL RESULTS OF FUNDRAISE

CALGARY, ALBERTA (June 5, 2026) - Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX, LSE: TXP) is pleased to announce that, further to the Company's announcement dated June 4, 2026 regarding the Fundraise (the "Fundraise Announcement"), the Company has initially raised aggregate gross proceeds (before expenses) of US$10.9 million (approximately £8.1 million and C$15.0 million) at the Issue Price of 7 pence per New Common Share (equivalent to approximately C$0.13 per New Common Share).

Of the aggregate gross proceeds raised to date, approximately US$10.3 million (approximately £7.7 million and C$14.3 million) is being subscribed for by the Company's largest shareholder, Purebond Limited ("Purebond"), by way of the aggregate of the First Tranche Subscription Shares and the Debt Securities (each as defined in the Fundraise Announcement, which also provides further details of the Subscription Agreement).

The WRAP Offer remains open for participation and a further announcement will be made upon its closing confirming, inter alia, the final aggregate number of New Common Shares to be issued, allocations to Purebond, and related party transaction disclosures.

Canaccord Genuity Limited acted as Nominated Adviser and Lead Bookrunner and Cavendish Capital Markets Limited acted as a Joint Bookrunner in connection with the Placing. Canaccord Genuity Corp. acted as Canadian Adviser in respect of the LIFE Offering.

Admission and Total Voting Rights

Application will be made to AIM for the First Tranche Subscription Shares, the Placing Shares, and the LIFE Offering Shares to be admitted to trading on AIM ("First Admission") and the TSX to list the New Common Shares. First Admission is expected to occur on or around June 10, 2026.

The LIFE Offering Shares will be immediately freely tradable in Canada pursuant to the Listed Issuer Financing Exemption.

A further announcement will be made following the close of the WRAP Offer, which will include the total voting rights in the Company's share capital at First Admission, pursuant to the admission of the First Tranche Subscription Shares, the Placing Shares, the LIFE Offering Shares and the WRAP Offer Shares.

Capitalised terms used in this announcement but not defined have the meanings given to them in the Fundraise Announcement.

Touchstone Exploration Inc.

Touchstone Exploration Inc.

Paul R. Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487

Scott Budau, Chief Financial Officer

Brian Hollingshead, EVP Engineering and Business Development

Canaccord Genuity (Nominated Advisor and Joint Broker)

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

Sam Lucas / Darren Furby

Cavendish Capital Markets Limited (Joint Broker)

Neil McDonald / Derrick Lee / Graham Hall Tel: +44 (0) 131 220 6939

FTI Consulting (Financial PR)

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

Advisories

Exchange Rates

For reference purposes in this announcement, one British pound has been converted into United States dollars at a rate of 1.00 to US$1.3426 and Canadian dollars at a rate of 1.00 to C$1.8640 as set out in the Fundraise Announcement.