Mr. Richard Muruve reports

SHARES FOR INTEREST DEBT SETTLEMENT

Arch Biopartners Inc. has arranged a shares for debt transaction to settle an aggregate of $172,500 in interest accrued up to Sept. 30, 2023, on all five of the deferred convertible notes outstanding and disclosed in the company's financial statements.

The shares for debt settlement is pending final approval from the TSX Venture Exchange which will be followed by the company issuing 156,818 common shares (settlement shares) at a deemed price of $1.10 to the holder of the notes and who is an arm's-length party to the company. The terms of the notes require the issuance of common shares to settle interest owing by the company and subject to TSX-V approval pursuant to TSX-V Policy 4.3 -- Shares for Debt. The settlement shares will be issued subject to prospectus exemptions available pursuant to Canadian securities law and will be subject to a four-month hold period which will expire Feb. 24, 2024.

The details of the notes can be found in Note 7 of the company's 2023 Q3 interim financial statements. The aggregate total notional value of the notes is $3.1-million and the notes are convertible into common shares only at maturity. The maturities of the specific notes disclosed as notes A, B and D in Note 7 have been extended from Sept. 30, 2023, to Sept. 30, 2024. The maturity of Note C has been extended from Jan. 24, 2024, to Sept. 30, 2024. The maturity of Note E remains Feb. 1, 2025.

The shares for debt transaction was approved by the company's board of directors and did not require a formal valuation nor minority shareholder approval pursuant to Multilateral Instrument 61-101.

About Arch Biopartners Inc.

Arch Biopartners is a clinical-stage company focused on the development of innovative technologies that have the potential to make a significant medical or commercial impact. Arch is developing a pipeline of new drug candidates that inhibit inflammation in the lungs, liver and kidneys via the dipeptidase-1 (DPEP-1) pathway, relevant for multiple medical indications.

We seek Safe Harbor.