Mr. Andrew Parks reports

FOUNTAIN ASSET CORP. ANNOUNCES ITS FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2023

Fountain Asset Corp. has released its financial results for the three months ended March 31, 2023 (Q1 2023).

Highlights from Q1 2023:

• Net asset value (NAV) of $11.68-million (19 cents per share) at March 31, 2023, compared with $11.84-million (19 cents per share) at Dec. 31, 2022, representing a flat nil change quarter-over-quarter on a per-share basis. NAV is calculated as the value of total assets less the value of total liabilities;
• Net comprehensive loss of $180,000 for the three months ended March 31, 2023, compared with net comprehensive loss of $2.03-million for three months ended March 31, 2022 (Q1 2022);
• Total gain from investment activity was $40,000 compared with total loss of $1.8-million for Q1 2022;
• Net realized gains on the sale of portfolio investments of $90,000 compared with net realized losses of $810,000 for Q1 2022;
• Net unrealized losses on portfolio investments of $60,000 compared with net unrealized losses of $990,000 for Q1 2022;
• Total expenses of $220,000, which included $30,000 of stock-based compensation, compared with $230,000 for Q1 2022, which included $30,000 of stock-based compensation; and
• Operating expenses of $180,000 compared with $180,000 for Q1 2022.

During Q1 2023, the company saw a slight increase from its portfolio of publicly traded companies, which included an increase from Black Swan Graphene. The increases were offset by decreases in the stock price of Hub Cyber Security.

The company was able to maintain low operating expenses in Q1 2023 as it has done in the previous quarters, which helped contribute to a net comprehensive loss of $180,000 for Q1 2023 compared with net comprehensive loss of $2.03-million for Q1 2022. As at March 31, 2023, the company's net assets were valued at $11.68-million, or 19 cents per share, compared with $11.84-million, or 19 cents per share, at Dec. 31, 2022.

"During Q1 2023, the company saw early signs of success in its strategy to increase our exposure to the battery metals and the energy sector. We believe that with the new investments made this quarter in these industries Fountain has positioned itself to realize future economic benefits that will ensure the continued success of the company," said Andrew Parks, chief executive officer of Fountain.

A full set of the Q1 2023 unaudited financial statements and the management discussion and analysis (MD&A) are available on SEDAR.

About Fountain Asset Corp.

Fountain Asset is a merchant bank which provides equity financing, bridge loan services (asset back/collateralized financing) and strategic financial consulting services to companies across many industries, such as marijuana, oil and gas, mining, real estate, manufacturing, retail, financial services, and biotechnology.

We seek Safe Harbor.