Mr. Michael Kyne reports

CUBICFARMS PROVIDES UPDATE ON HYDROGREEN'S FEED CENTER IN CALIFORNIA AND STRATEGIC EXPANSION INTO OKLAHOMA

Cubicfarm Systems Corp.'s ruminant livestock feed subsidiary company, HydroGreen Inc., has agreed to enter into a partnership agreement with Hansen Industries to construct two feed centres in Visalia, Calif., each equipped with 20 GLS 808 machines. This agreement is designed to fulfill the previously announced, pre-existing demand for 120 tonnes of fodder per day of fresh sprouted grains as part of a feed-as-a-service (FaaS) offering.

"We are excited to partner with HydroGreen to build feed centres and provide an industry-changing feed additive," said Shane Hansen, founder and chief executive officer of Hansen Industries. "The feed centres will be developed and built in Visalia, Calif., to supply sprouted grains to our existing signed customer base to add to their daily feed ration. As observed in research trials, the positive impact of this high performance feed additive is evident in the herd within days. We are only beginning to understand the long-term health benefits that HydroGreen provides to the animal and the value that it brings back to the producer. Any dairyman will tell you, 'You have to feed it to believe it.' This partnership will allow us to do just that." Hansen Industries is renowned for delivering high-quality dairy industry products and services with a focus on building long-term relationships with customers.

In addition to the progress in Visalia, Calif., HydroGreen announces plans for an additional regional feed centre in Tulsa, Okla., with Precision Capital Ventures. In this agreement, HydroGreen will be the exclusive FaaS supplier of fresh fodder to Precision Capital Ventures, with HydroGreen building and operating the regional feed centres on behalf of the customer.

Gabe Orr, founder and partner of Precision Capital Ventures, said: "Precision Capital Ventures looks to rely on HydroGreen's service to scale and build our future in grass-fed beef operations, together we can produce verifiably healthier beef cattle for our consumers. Our initial plans will require one HydroGreen feed centre to be added each year for the next four years." Precision Capital Ventures is a private equity firm founded by fourth-generation beef ranchers, specializing in innovative technologies in the agriculture and beef industries.

"This expansion of HydroGreen's operations showcase HydroGreen's capacity to meet large-scale needs for the evolving agricultural sector through practical, efficient solutions," said John de Jonge, president and chief executive officer of HydroGreen. "Our goal is to bring continuous value to producers while diversifying HydroGreen's geographical footprint throughout the U.S."

"HydroGreen's recent agreements are pivotal in the execution of our FaaS model, showcasing our ability to innovate both independently and in collaboration with key agricultural partners. Our strategy for 2024 and beyond is centred on expanding feed centre operations in crucial U.S. markets. This expansion is not just about growth; it's about solidifying a sustainable source of recurring revenue for the company," said Michael Kyne, chief financial officer of Cubicfarm and HydroGreen.

About HydroGreen Inc.

HydroGreen produces Automated Vertical Pastures, a type of smart farming equipment that uses a unique process to sprout grains such as wheat and barley in a controlled growing environment to efficiently produce a high performance feed ingredient for livestock 365 days a year. HydroGreen's equipment is simple and easy to operate and performs all growing functions automatically, including seeding, watering, lighting, harvesting and reseeding, which allows livestock businesses to feed consistent nutrition every day with minimal labour. When balanced correctly in the ration, HydroGreen sprouted grain modifies animal digestion, which enhances productivity and reduces the amount of enteric methane emitted in ruminant livestock. The result also enables environmental benefits to the farm while helping to meet increasing demand for valuable farm-based inset and offset carbon credits.

About Cubicfarm Systems Corp.

Cubicfarm is a leading local chain agricultural technology company developing and deploying technology to feed a changing world. Its proprietary agricultural technology solutions enable growers to produce high-quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a subsidiary of Cubicfarm Systems. The Cubicfarm system contains patented technology for growing leafy greens and other crops on site, indoors, all year round. Cubicfarm provides an efficient, localized food supply solution that benefits our people, planet and economy.

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