I've actually had this problem of a rusted seatpost in a frame. That wouldn't come out, no matter what I tried
I didn't want to suggest this operation because it requires some skill. If not careful it can ruin the frame. But it worked
I used a sawzall. The seatpost wasn't any deeper than the sawzall blade was long. So I very carefully made a cut through the seatpost inside lengthwise, making sure not to cut through the frame tube. When I finished my cut I pried back one side of the seatpost with a screwdriver and that was enough to pop it loose. If not I would of had to make another cut. Then using a wood dowel, I made a long sandpaper stick, hooked it up to a drill motor and sanded the rust from the inside of the frame tube.
One last suggestion, You could always show it to a machinist and see if they could drill it out
I didn't want to suggest this operation because it requires some skill. If not careful it can ruin the frame. But it worked
I used a sawzall. The seatpost wasn't any deeper than the sawzall blade was long. So I very carefully made a cut through the seatpost inside lengthwise, making sure not to cut through the frame tube. When I finished my cut I pried back one side of the seatpost with a screwdriver and that was enough to pop it loose. If not I would of had to make another cut. Then using a wood dowel, I made a long sandpaper stick, hooked it up to a drill motor and sanded the rust from the inside of the frame tube.
One last suggestion, You could always show it to a machinist and see if they could drill it out