Mr. James Lee reports

HEALWELL AI PROVIDES CORPORATE UPDATE: MULTI-PROVINCE AI PILOT RESULTS ACCEPTED AT AMIA SYMPOSIUM; ALONGSIDE BALANCE SHEET STRENGTHENING WITH SPACEX HOLDINGS

Healwell AI Inc. has completed a multiprovince AI (artificial intelligence) pilot and the acceptance of associated research for presentation at the American Medical Informatics Association (AMIA) Annual Symposium, while also providing an update on its indirect interest in SpaceX and continued balance sheet optimization efforts.

• Healwell successfully completed a pilot evaluating its Darwen AI-powered Smart Summary and Smart Search solutions in multiple provinces across Canada. The pilot demonstrated how clinically validated and interoperable AI can reduce chart review burden, improve access to patient information and support more efficient clinical workflows. Healwell is exploring opportunities to expand deployment of its Smart products across additional health care environments, including within the Well Health ecosystem.
• Results arising from the pilot have been accepted for presentation at the prestigious American Medical Informatics Association (AMIA) Annual Symposium, one of the world's leading health care informatics conferences, taking place from Nov. 7 to Nov. 11, 2026, in Dallas, Tex.
• Following the completion of SpaceX's initial public offering, based on current market prices and exchange rates, Healwell now holds an indirect interest of approximately $25-million in SpaceX stock. Healwell's holdings originated through its earlier investment in xAI, which was acquired by SpaceX in February, 2026, and is subject to a customary post-IPO (initial public offering) lock-up period.

"Our teams continue to make meaningful progress on both fronts that matter most to our shareholders: demonstrating the real-world clinical value of our AI, and strengthening the financial foundation of the business," said James Lee, chief executive officer of Healwell. "The success of this pilot and the acceptance of our research at the AMIA Symposium validate our strategy of embedding trusted, clinically validated AI directly into health care workflows. At the same time, we remain disciplined in our capital allocation, remain compliant with all debt covenants and plan to monetize our SpaceX holdings when permitted."

Reducing clinician burnout: multiprovince AI pilot and AMIA recognition

Healwell successfully completed a pilot evaluating how its Darwen-powered Smart Summary and Smart Search solutions can improve access to patient information and support more efficient clinical workflows. The significance of the pilot was further recognized through the acceptance of its results for presentation at the AMIA 2026 Annual Symposium, taking place from Nov. 7 to Nov. 11, 2026, in Dallas, Tex. Acceptance of these results provides independent validation of Healwell's clinically validated AI approach.

Healwell's Smart Summary and Smart Search solutions help clinicians quickly access and interpret relevant patient information through AI-generated, traceable summaries and search capabilities powered by the Darwen AI platform. The multiprovince pilot, conducted across British Columbia, Ontario and New Brunswick within both Oscar Pro and Intrahealth Profile electronic medical record environments, demonstrated how these solutions can reduce chart review burden, improve access to critical patient information and integrate directly into existing clinical workflows. Darwen has been validated through 47 peer-reviewed publications and is designed to provide auditable, clinically responsible outputs.

Administrative burden remains a significant challenge across health care systems globally. Clinicians often spend substantial time navigating fragmented patient records, referral documentation, PDFs and unstructured clinical notes to locate relevant information. Approximately 80 per cent of health care information exists in unstructured formats, creating inefficiencies that contribute to provider fatigue, administrative burden and delayed clinical decision making.

As a result of the pilot's success, the company believes this represents an important step toward enabling AI-assisted preventative care at scale through trusted healthcare infrastructure, interoperability and clinician-centric workflow integration. Healwell is exploring opportunities to expand deployment of its Smart products across additional health care environments, including within the Well Health ecosystem.

Aaron Leibtag, head, global health systems AI strategy and pursuits at Healwell, commented: "Clinicians should not have to spend valuable time searching through fragmented records to find critical patient information. Smart Summary and Smart Search were designed to surface relevant information directly within clinical workflows through trusted, clinically validated AI. We believe one of the biggest challenges facing healthcare systems today is not a lack of data, but the ability to effectively use it. The results of this pilot demonstrate how AI can reduce administrative burden, improve efficiency and support better patient care, while helping healthcare organizations unlock greater value from the information they already have."

Healwell balance sheet strengthened by SpaceX Holdings

Healwell holds an indirect interest in Space Exploration Technologies Corp. that originated as an investment in xAI Corp., which was acquired by SpaceX in February, 2026, and now consists of Class A common stock in SpaceX. On June 12, 2026, SpaceX completed its initial public offering (IPO) and its Class A common stock began trading on the Nasdaq Stock Market under the symbol SPCX, at a public offering price of $135.00 (U.S.) per share. Healwell was not a party to the offering. Based on current market prices and exchange rates, Healwell estimates the value of its indirect interest of SpaceX to be approximately $25-million. Healwell holds its interest indirectly through a special purpose vehicle (SPV), which is expected to distribute the underlying SpaceX securities to Healwell in accordance with the terms of the SPV. Healwell's original investment of $2-million (U.S.) in the SPV was made in Q2 2024.

As is customary with many United States IPOs, SpaceX securities issued prior to the IPO, including those held indirectly through the SPV, are subject to resale restrictions and lock-up provisions, which the company understands to extend for a period of up to six months following the IPO. Accordingly, the SPV's ability to distribute securities to Healwell, and Healwell's ability to subsequently sell any securities it receives, will be restricted during the applicable lock-up period. The proceeds from any future monetization of the company's indirect investment in SpaceX would further enhance Healwell's liquidity and overall capital structure.

IFRS (international financial reporting standards) financial reporting considerations

Following distribution of the underlying securities by the SPV to Healwell, the company expects to begin accounting for the holdings as a current asset on its balance sheet, in accordance with international financial reporting standards (IFRS). The value of Healwell's holdings in the SPV was until recently reported at approximately $4.6-million in the company's financial statements, including for the period ending March 31, 2026. The company anticipates that it will update the carrying value of this investment in its upcoming financial reporting.

Healwell notes that although the company reports $19.7-million classified as a current liability for accounting purposes under IFRS, the debenture is not due until Dec. 31, 2029. Healwell's balance sheet includes a $30.0-million convertible debenture with a cash settlement maturity date of Dec. 31, 2029. As of March 31, 2026, the fair market value (FMV) of the debenture according to IFRS guidelines was $19.7-million. The holder of the debenture has the ability to convert the debenture into Class A subordinate voting shares of the company at any time and, as a result, the company is required to report the debenture as a current liability at FMV under IFRS. Additional details on the debenture appear in Note 15 of the March 31, 2026, financial statements filed on SEDAR+. Importantly, the company is currently in compliance with all debt covenants.

About Healwell AI Inc.

Healwell is a health care artificial intelligence company focused on preventative care. Its mission is to improve health care and save lives through early identification and detection of disease. Using its own proprietary technology, the company is developing and commercializing advanced clinical decision support systems that can help health care providers detect rare and chronic diseases, improve efficiency of their practice, and ultimately help improve patient health outcomes. Healwell is executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that complement the company's road map. Healwell is publicly traded on the Toronto Stock Exchange under the symbol AIDX and on the OTCQX under the symbol HWAIF.

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