Mr. Vincent Wong reports

KONA BAY TECHNOLOGIES ANNOUNCES RESULTS OF ANNUAL GENERAL AND SPECIAL MEETING

Kona Bay Technologies Inc. has provided the results from its annual and special meeting of shareholders, which was held on April 24, 2017. All matters put forth in the management information circular of the company dated March 20, 2017, were passed. The circular is available for download under the company's profile on SEDAR.

Shareholders represented in person or by proxy at the meeting elected Dickson Hall, Howard Louie and Vincent Wong as directors of the company for the ensuing year and appointed DeVisser Gray LLP as the company's external auditor. In addition, shareholders represented in person or by proxy at the meeting approved and adopted the company's stock option plan.

Shareholders of the company also unanimously approved the company's plan of arrangement whereby the company will spin out its on-line advertising business into Hapuna Ventures Inc. and its software-as-a-service business into Bexar Ventures Inc. Each of Hapuna and Bexar will be independently publicly listed companies on completion of the arrangement.

Under the arrangement, each shareholder of the company will receive one share of the Hapuna and Bexar for each share of the company held. Full details of the arrangement are set forth in the company's management information circular dated March 20, 2017.

The court hearing for the final order on the arrangement is expected to take place on April 28, 2017. The company continues to expect the arrangement to close in the first half of 2017. The arrangement is subject to customary conditions and regulatory approvals.

We seek Safe Harbor.