Mr. Amrit Maharaj reports

PUREBREAD BRANDS INC. ANNOUNCES PROPOSED DEBT SETTLEMENT AND CLOSING OF PREVIOUSLY ANNOUNCED DEBT SETTLEMENT

Purebread Brands Inc. has entered into a debt settlement agreement with an arm's-length creditor to convert $1,974,588 of outstanding indebtedness into an aggregate of 1,579,670 units of the company at a price of $1.25 per settlement unit, in full and final settlement of such indebtedness. Each settlement unit will comprise one common share of the company and one-half of one common share purchase warrant, with each full warrant exercisable by the holder to acquire a common share of the company, at a price of $2.50 per common share for a period of three years from the date of issuance. It is anticipated that following closing of the debt settlement, the creditor will become an insider of the company, as such term is defined under applicable Canadian securities laws and the policies of the TSX Venture Exchange.

The debt settlement is subject to TSX Venture Exchange approval. All securities issued in connection with the debt settlement will be subject to a four-month hold period from the date of issuance in accordance with applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

In addition, the company is pleased to announce that, further to the company's news release on Jan. 6, 2026, it has completed its previously announced share-for-debt transaction and issued an aggregate of 532,322 common shares of the company to an arm's-length creditor of the company at a price of $1.25 per settlement share, in full and final settlement of accrued and outstanding indebtedness in the aggregate amount of $484,000 (U.S.) ($665,403.20 (Canadian)). Immediately prior to the issuance of the settlement shares, the company had 27,566,263 common shares outstanding; following the issuance of the settlement shares, there are 28,098,585 common shares outstanding.

All settlement shares are subject to a four-month hold period from the date of issuance in accordance with applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

About Purebread Brands Inc.

Purebread Brands is a leader in fast-casual cafe/bakeries in British Columbia, driving retail expansion in vibrant communities across Canada and beyond. Purebread is committed to crafting exceptional food experiences and making a positive impact on the communities it serves.

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