Mr. Michel Lassonde reports

MARGAUX REIT ANNOUNCES CLOSING OF BROKERED PRIVATE PLACEMENT OF SECURED DEBENTURES AND FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT OF UNITS

Margaux Real Estate Investment Trust has completed the first tranche closing of its previously announced non-brokered private placement and has concurrently closed a brokered private placement of secured debentures.

Closing of unit offering

Under the first tranche closing, the REIT issued 788,475 units, at a price of $1.30 per unit, for aggregate gross proceeds of $1,025,017.50. Each unit consists of one trust unit of the REIT and one-half of one trust unit purchase warrant, resulting in the issuance of an aggregate of 788,475 trust units and 394,234 warrants. Each warrant is exercisable to acquire one additional trust unit at a price of $1.50 per trust unit for a period of 24 months from the date of issuance. No finder's fee or commission was paid or is payable by the REIT in connection with the first tranche closing.

The net proceeds from the first tranche closing are expected to be used, together with the net proceeds of the debenture offering, to finance the acquisition of a self-storage property located in Saint-Basile-le-Grand, Que. (see the REIT's news release dated July 10, 2026, for further details), with the balance, if any, to be used for general working capital.

The first tranche closing remains subject to final acceptance from the TSX Venture Exchange. Additionally, the trust units and warrants issued are subject to a four-month-and-one-day hold period from the date of issuance.

Insiders subscribed for 153,850 units sold in the first tranche closing for a total of 19.51 per cent of the units issued under the first tranche closing, which increases the percentage ownership of outstanding trust units owned by such insiders to 7.70 per cent on a non-diluted basis. The placements to such insiders constituted a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Neither the REIT, nor to the knowledge of the REIT after reasonable inquiry, a related party, has knowledge of any material information concerning the REIT or its securities that has not been generally disclosed.

The REIT is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to sections 5.5(a) and 5.7(1)(a)) on the basis that neither the fair market value of the units distributed to, nor the consideration received from, related parties exceeded 25 per cent of the REIT's market capitalization for the purposes of MI 61-101. The REIT did not file a material change report more than 21 days before the first tranche closing because the details of the participation therein by related parties of the REIT were not settled until shortly prior to the first tranche closing and the REIT wished to close on an expedited basis for business reasons.

Closing of debenture offering

The debenture offering was completed for aggregate gross proceeds of $2.7-million through the issuance of non-convertible, secured debentures of the REIT, with iA Capital Markets (a division of iA Private Wealth Inc.) acting as sole lead agent and sole bookrunner on a commercially reasonable efforts basis, pursuant to an agency agreement entered into between the REIT and the agent. The debenture offering closed concurrently with the first tranche closing on July 31, 2026.

The debentures were issued in denominations of $1,000 and bear interest at a rate of 9.0 per cent per annum from the closing date, payable quarterly. The debentures mature on the date that is 36 months from the closing date. The debentures are redeemable, in whole or in part, at the option of the REIT, at any time prior to the date that is 24 months after the closing date, at a redemption price equal to: (i) 100 per cent of the principal amount thereof; plus (ii) all accrued and unpaid interest thereon to the redemption date; plus (iii) an amount equal to the interest that would have accrued from the redemption date to the date that is 24 months after the closing date, provided that, commencing on the date that is 12 months after the closing date, the REIT may redeem up to an aggregate maximum principal amount of $1.5-million of the debentures at a redemption price equal to 100 per cent of the principal amount, plus all accrued and unpaid interest to the redemption date and plus, in lieu of the additional interest described in (iii) above, a premium equal to 2 per cent of the principal amount redeemed. On and after the date that is 24 months from the closing date, the debentures are redeemable, in whole or in part, at the option of the REIT, at 100 per cent of the principal amount plus accrued and unpaid interest to the redemption date.

If the principal amount of the debentures, together with all accrued and unpaid interest thereon, is not paid in full on the maturity date, a late payment fee equal to 4 per cent of the principal amount then outstanding will apply and the interest rate will increase to 12 per cent per annum from and after the maturity date until such amounts are paid in full.

The debentures are secured by a deed of movable and immovable hypothec in the amount of $3.6-million granted in favour of the agent, in its capacity as hypothecary representative, for the benefit of all holders of debentures, charging the immovable property indirectly owned by the REIT and located at 131-D Sir Wilfrid-Laurier, Saint-Basile-le-Grand, Que., J3N 1A2 together with all rents, revenues and profits derived therefrom and all insurance proceeds covering the property. The hypothec ranks second in priority to the first-ranking hypothecs granted in favour of the REIT's senior lender, National Bank of Canada. The repayment of the debentures is postponed and subordinated to all liabilities and obligations from time to time owing by the REIT to the senior lender.

In consideration for its services in connection with the debenture offering, the REIT paid to the agent on the closing date a cash commission equal to 4.5 per cent of the gross proceeds of the debenture offering, being $121,500, and issued to the agent that number of non-transferable broker warrants equal to 4.5 per cent of the gross proceeds of the debenture offering divided by $1.25, being 97,200 broker warrants. Each broker warrant entitles the holder to acquire one trust unit at a price of $1.50 per trust unit for a period of 24 months from the date of issuance.

The net proceeds of the debenture offering are expected to be used, together with the net proceeds of the first tranche closing, to finance the acquisition of the property, with the balance, if any, used for general working capital. The debentures and the broker warrants are subject to a four-month-and-one-day hold period from the closing date, and the closing of the debenture offering remains subject to the final acceptance of the TSX Venture Exchange.

The debentures will not be listed on any stock exchange.

About Margaux Real Estate Investment Trust

Margaux is a Quebec-based real estate investment trust specializing in the acquisition and operation of self-storage facilities. It is the only publicly traded REIT in Canada exclusively focused on the self-storage sector. The REIT seeks to acquire assets that generate stable cash flows, offer long-term growth potential and demonstrate operational resilience.

We seek Safe Harbor.