Mr. Richard Muruve reports

ARCH BIOPARTNERS ENGAGES PRIVATE LABORATORY TO ACCELERATE IL-32 CHRONIC KIDNEY DISEASE PROGRAM

Arch Biopartners Inc. has engaged a United States-based laboratory specializing in bioengineering to accelerate the company's pre-IND IL-32 chronic kidney disease (CKD) program.

The U.S.-based lab was selected for its core competencies in the areas required to support the IL-32 program. It will perform studies on behalf of Arch to generate proprietary data and support the company's patent portfolio covering its IL-32 drug candidates and related method-of-use claims. These studies represent the next stage of drug development following the identification of IL-32 as a potential therapeutic target in diabetic kidney disease.

"This research contract is an important step in advancing the company's IL-32 CKD drug development program," said Richard Muruve, chief executive officer of Arch Biopartners. "This work will help move the program forward while building a proprietary body of data to support the company's development and partnering strategy."

Arch's CKD program is focused on diabetic kidney disease (DKD), a leading cause of kidney failure in the United States. The program is supported by findings from human kidney tissue and disease models linking IL-32 to lipid droplet biology, inflammation and tubular injury in DKD.

Peer-reviewed findings published in Inflammation Research in February, 2026, provided further evidence of IL-32's association with metabolic stress, chronic inflammation and kidney injury in DKD. These findings support the company's rationale for developing therapies designed to target IL-32.

Other corporate news: update on market-making engagement

Arch also announced today that it entered into an agreement with Red Cloud Securities Inc. (RCSI), effective April, 2022, after the market-making team servicing Arch at Research Capital Corp. (RCC) moved to RCSI. RCSI assumed the agreement with Arch and has continued to provide market-making services in accordance with the policies of the TSX Venture Exchange.

Under the agreement, RCSI is entitled to a monthly cash fee of $5,000, payable from the company's general working capital. The agreement currently continues on a month-to-month basis and may be terminated by either party by providing 30-day written notice. As the agreement is month to month, there is no fixed aggregate cost. RCSI will not receive shares, options or performance-based compensation in connection with the services.

As part of the services provided to the company, RCSI uses its own funds to trade common shares of Arch on the TSX-V with the objective of maintaining an orderly market, improving liquidity and minimizing price volatility. RCSI provides all funds and any securities used in connection with the market-making activities. Neither Arch nor any person related to Arch provides funds or securities for those activities.

RCSI acts at arm's length from the company. RCSI and its principals have no direct or indirect interest in the securities of Arch, nor any right or intent to acquire such an interest, other than securities that may be acquired in the normal course of market-making activities.

The company's continuing engagement of RCSI remains subject to approval by the TSX-V.

About Arch Biopartners Inc.

Arch Biopartners is a therapeutic biotechnology company developing novel drugs for acute kidney injury (AKI) and chronic kidney disease (CKD). The company is advancing an integrated program that includes new treatments targeting inflammation- and toxin-related kidney injury.

Arch's development pipeline includes:

• LSALT peptide: in a phase II trial targeting cardiac surgery-associated AKI;
• Cilastatin: a repurposed drug in a phase II trial targeting toxin-induced AKI;
• CKD platform: next-generation therapeutics targeting chronic kidney disease.

These assets represent distinct, mechanism-based approaches focused on protecting the kidney from different causes of damage. Chronic kidney disease affects more than 800 million people worldwide, while acute kidney injury adds a further significant burden. Together, Arch's programs target unmet needs across both acute and chronic kidney disease. Both phase II programs are currently enrolling patients at Canadian clinical sites, with additional North American sites in development.

We seek Safe Harbor.