Ms. Sage Berryman reports

ALUULA REPORTS RECORD Q4 2025 SALES WITH $6M+ PIPELINE OF BINDING PURCHASE AGREEMENTS; PLANS TO SCALE MANUFACTURING CAPACITY IN 2026

Aluula Composites Inc. had record preliminary unaudited fourth quarter 2025 sales and a growing pipeline of binding purchase commitments that underpin its plan to expand manufacturing capacity and seek additional financing in early 2026 to support growth.

"We are delivering exactly what we set out to do, and our preliminary unaudited Q4 revenue combined with a strong pipeline of binding sales orders are clear proof of this execution and demand. To build on this momentum, we need to scale and we are exploring funding avenues to expand in line with our business plan. This level of execution is only possible with a highly capable and aligned team, and continued investment in the people who drive our performance remains fundamental to how we scale. We believe it is the right moment for us: we have the right products and the right team, at the right time, to carry this growth forward," said Sage Berryman, chief executive officer and president of Aluula.

Growth and demand highlights:

• Preliminary unaudited Q4 (fourth quarter) 2025 sales of approximately $2.9-million, Aluula's strongest quarter to date, with sequential revenue increases of 25 per cent in Q2 (second quarter) over Q1 (first quarter), 35 per cent in Q3 (third quarter) over Q2 and 37 per cent in Q4 over Q3;
• Binding purchase agreements scheduled for fulfilment during fiscal 2026 totalling over $6-million, supported by sales orders pending fulfilment that have risen to over $5 million since Oct. 31, 2025;
• Fiscal 2025 gross margins expected to be within the company's 40-per-cent-to-45-per-cent target range, reflecting disciplined pricing and cost control.

Capacity and financing plans:

• Q4 performance tested the limits of current production capacity and the company expects capacity investments will not be completed by Q1 2026, potentially constraining near-term fulfilment of open orders.
• To execute on existing commitments and capture additional demand from wind power, defence shelters and premium outdoor markets, Aluula intends to pursue funding in early 2026 to scale manufacturing capacity.
• The company is evaluating a mix of equity, debt and non-dilutive options, with the goal of aligning expansion capital with shareholder interests and its broader growth strategy.

Strategic positioning:

• Aluula's patented UHMWPE composite fabrics, no-sew mono-material construction and recycle-ready platform continue to validate its position as a premium ingredient brand with marquee global partners.
• Management believes the combination of strong customer demand, validated 1.5-metre manufacturing capability, robust gross margins and a growing technology portfolio provides a clear path to growth in 2026 and beyond.

The company cautions that figures provided have not been audited and are based upon calculations prepared by management. Actual results may differ from those reported in this news release once these figures have been audited. The company expects to file its complete, audited annual financial statements, and associated management discussion and analysis in February, 2026, on the company's profile on SEDAR+.

About Aluula Composites Inc.

Aluula is an ultralight, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear, as well as commercial and industrial equipment. Proudly owned and manufactured on the Canadian West Coast, Aluula's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. Aluula's materials are known for their unique construction capabilities and their ability to make products lighter, stronger and more sustainable.

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