Mr. Kelly Abbott reports

PARCELPAL ANNOUNCES ADOPTION OF 20% FIXED STOCK OPTION INCENTIVE PLAN

ParcelPal Technology Inc. has terminated its 10-per-cent rolling stock option plan and established a 20-per-cent fixed stock option plan, under which options to purchase common shares of the company may be granted from time to time to directors, officers, consultants, employees and other persons eligible to be granted options in accordance with the policies of the Canadian Securities Exchange.

The termination will not alter the terms or conditions of any of the current options outstanding under the 10-per-cent rolling stock option plan or impair any right of any holder of the current options pursuant to any current option awarded prior to the date of the termination. Notwithstanding the termination, the company, current options, current optionholders and common shares of the company issuable under current options will continue to be governed by the provisions of the 10-per-cent rolling stock option plan.

The new plan will allow for the issuance of up to 20 per cent of the total number of issued and outstanding common shares of the company as of Dec. 8, 2016, or 5,637,711 common shares. As at Dec. 8, 2016, there are 2,705,000 current options outstanding and therefore there will be a total of 2,932,711 stock options available allowing for the issuance of up to 2,932,711 common shares of the company under the new plan.

The company also announces that the board of directors has approved the grant of incentive stock options to certain consultants of the company under the new plan to purchase up to a total of 400,000 common shares of the company. The options are exercisable at a price of 19 cents per common share and will expire 36 months from the date of grant.

We seek Safe Harbor.