Mr. Jeffrey Royer reports

SHAREHOLDER INCREASES INTEREST IN BAYLIN TECHNOLOGIES

2385796 Ontario Inc. has subscribed on a private placement basis for eight million common shares of Baylin Technologies Inc. at a price of 39 cents for each common share. The price of the common shares represents the volume-weighted average trading price of the common shares on the Toronto Stock Exchange for the five-day period ended May 19, 2023, the date notice of the private placement was filed by the company with the TSX. The eight million common shares acquired by the subscriber represent approximately 9.9 per cent of the 80,401,693 common shares outstanding before giving effect to the private placement.

After giving effect to the private placement, the subscriber holds 51,878,313 common shares, representing approximately 58.7 per cent of the 88,401,693 common shares outstanding. An associate of Jeffrey C. Royer, chairman of the board, holds an additional 2,748,450 common shares. Together, the associate and the subscriber hold 54,626,763 common shares, representing approximately 61.8 per cent of the common shares outstanding after giving effect to the private placement. Mr. Royer exercises exclusive control over the common shares held by the associate and, by virtue of an agreement with the associate, over the common shares held by the subscriber.

The common shares were acquired for investment purposes. Mr. Royer may direct the purchase of additional common shares or other securities of the company or direct the sale of common shares or other securities of the company, in each case, based on market and other conditions or other circumstances.

A copy of the early warning report required by National Instrument 62-103 (the Early Warning System and Related Take-Over Bid and Insider Reporting Issues) incorporating this and other information will be available under the company's issuer profile on SEDAR and by contacting Kelly Myles, marketing and communications director at the company, at kelly.myles@baylintech.com.