Mr. Andrew Parks reports

FOUNTAIN ASSET CORP. ANNOUNCES ITS FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2023

Fountain Asset Corp. has released its financial results for the three months ended June 30, 2023 (Q2 2023).

Highlights from three months ended June 30, 2023:

• Net asset value (NAV) of $11-million (18 cents per share) at June 30, 2023, compared with $11.68-million (19 cents per share) at March 31, 2023, representing a decrease of 5.3 per cent 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 $700,000 for the three months ended June 30, 2023, compared with net comprehensive loss of $5.02-million for three months ended June 30, 2022 (Q2 2022);
• Total loss from investment activity was $530,000 compared with total loss of $4.7-million for Q2 2022;
• Net realized losses on the sale of portfolio investments of $1.56-million compared with net realized losses of $1.24-million for Q2 2022;
• Net unrealized gains on portfolio investments of $1.03-million compared with net unrealized losses of $3.47-million for Q2 2022;
• Total expenses of $170,000, which included $20,000 of stock-based compensation, compared with $320,000 for Q2 2022, which included $20,000 of stock-based compensation;
• Operating expenses of $190,000 compared with $190,000 for Q2 2022.

Highlights from six months ended June 30, 2023:

• NAV of $11-million (18 cents per share) at June 30, 2023, compared with $11.84-million (19 cents per share) at Dec. 31, 2022, representing a 5.3-per-cent decrease year-to-date on a per-share basis. NAV is calculated as the value of total assets less the value of total liabilities;
• Net comprehensive loss of $880,000 for the six months ended June 30, 2023, compared with net comprehensive loss of $7.06-million for the six months ended June 30, 2022;
• Total loss from investment activity was $500,000 compared with total loss of $6.5-million for the six months ended June 30, 2022;
• Net realized losses on the sale of portfolio investments of $1.47-million compared with net realized losses of $2.05-million for the six months ended June 30, 2022;
• Net unrealized gains on portfolio investments of $970,000 compared with net unrealized losses of $4.47-million for the six months ended June 30, 2022;
• Total expenses of $390,000, which included $50,000 of stock-based compensation, compared with $560,000 for the six months ended June 30, 2022, which included $50,000 of stock-based compensation;
• Operating expenses of $380,000 compared with $370,000 for the six months ended June 30, 2022.

During Q2 2023, the company saw a decrease in its portfolio of publicly traded companies, as a result of continued volatility and uncertainty surrounding global markets. The company also strategically disposed of non-core investment holdings that continued to struggle during these challenging times. The decreases recorded by the company were slightly offset by increases in the stock prices of Alchemist Mining Inc. and SRG Mining Inc.

The company continued to maintain low operating expenses in Q2 2023, which helped reduce the net comprehensive loss of the company. As at June 30, 2023, the company's net assets were valued at $11-million, or 18 cents per share, compared with $11.84-million, or 19 cents per share, at Dec. 31, 2022.

"In Q2 2023, Fountain strategically disposed of non-core portfolio investments, and utilized the proceeds received to continue to strengthen its position in the battery metals, mining and energy sectors. Although this resulted in the company realizing losses on the sale of some of its investments, we believe that the new opportunities that Fountain has invested in will lead to future long-term economic benefits for the company," said Andrew Parks, chief executive officer of Fountain.

A full set of the Q2 2023 unaudited financial statements, and the management's 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.