Mr. Tomer Bar Meir reports

ESHBAL ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Eshbal Functional Food Inc. has initiated a non-brokered private placement offering of up to 4,411,765 units of the company at a price of 17 cents per unit for gross proceeds to the company of up to $750,000.

The private placement will be made through units whereby each unit consists of one common share of the company and one full common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share at an exercise price of 30 cents at any time up to 24 months following the closing date (as defined herein).

The units to be issued under the offering will be offered by way of a private placement pursuant to applicable exemptions from the prospectus requirements in each of the provinces of Canada and in jurisdictions outside of Canada, including the United States, as determined by the company, where no prospectus, registration or comparable obligations arise.

The net proceeds from the offering will be utilized by the company to advance acquisition opportunities, and support continuing product development, sales initiatives and working capital.

The company may elect to pay fees to certain finders, which may include issuance of finders' warrants, in accordance with the policies of the TSX Venture Exchange. The finders' warrants shall have the same terms and conditions as the warrants comprising the units.

The offering is expected to close on or around Jan. 29, 2026, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX-V. The securities to be issued under the offering, including any finders' warrants, will have a hold period of four months and one day from the closing date in accordance with applicable securities laws.

About Eshbal Functional Food Inc.

Eshbal Functional Food is an innovative and profitable food-tech company that focuses on the gluten-free and better for you categories. Eshbal is pursuing a roll-up strategy in the fragmented, artisanal gluten-free market to create a platform that delivers the scale needed by mainstream grocers. Its recent agreement with Dare 2 Be Different Foods gives the company potential distribution in Walmart and 300-plus other stores in northeastern United States.

We seek Safe Harbor.