Mr. Andrew Parks reports

FOUNTAIN ASSET CORP. ANNOUNCES ITS FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2023

Fountain Asset Corp. has released its financial results for the three months ended Dec. 31, 2023 (Q4 2023) and for the year ended Dec. 31, 2023 (fiscal 2023).

Highlights from Q4/23:

• Net asset value ("NAV") of $6.66 million ($0.11 per share) at December 31, 2023 compared to $10.27 million ($0.17 per share) at September 30, 2023, representing an 35% decrease 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 $3.63 million for the three months ended December 31, 2023, compared to net comprehensive loss of $1.57 million for three months ended December 31, 2022 ("Q4/22");
• Total loss from investment activity was $3.32 million compared to total loss of $0.95 million for Q4/22;
• Net realized losses on the sale of portfolio investments of $2.49 million compared to net realized losses of $3.51 million for Q4/22;
• Net unrealized losses on portfolio investments of $0.83 million compared to net unrealized gains of $2.55 million for Q4/22;
• Total expenses of $0.31 million, which included $0.02 million of stock-based compensation, compared to $0.43 million for Q4/22 which included $0.07 of stock-based compensation; and
• Operating expenses of $0.29 million compared to $0.31 million for Q4/22.

Highlights from Fiscal 2023:

• NAV of $6.66 million ($0.11/share) at December 31, 2023 compared to $11.84 million ($0.19/share) at December 31, 2022, representing a 42% decrease year over year on a per share basis;
• Net comprehensive losses of $5.26 million compared to net comprehensive losses of $8.51 million for the year ended December 31, 2022 ("Fiscal 2022");
• Total losses from investment activity was $4.40 million compared to losses of $7.18 million for Fiscal 2022;
• Net realized losses on the sale of portfolio investments of $4.40 million compared to net realized losses of $5.68 million for Fiscal 2022;
• Net unrealized losses on portfolio investments of $0.03 million compared to net unrealized losses of $1.53 million for Fiscal 2022;
• Total expenses of $0.86 million, which included a foreign exchange loss of $0.01 million and stock-based compensation of $0.08 million, compared to $1.37 million for Fiscal 2022, which included foreign exchange gains of $0.04 million, and $0.13 million of stock-based compensation; and
• Operating expenses of $0.82 million compared to $0.88 million for Fiscal 2022.

During 2023, the Company continued to dispose of non-core investment holdings that have been struggling in recent years in order to generate proceeds to capitalize on new investment opportunities that Fountain believes will ultimately yield greater long term economic benefits for the Company and its shareholders.

The Company continued to maintain low operating expenses in Q4/23, which helped reduce the net comprehensive loss of the Company. As at December 31, 2023, the Company's net assets were valued at $6.66 million or $0.11 per share compared to $11.84 million or $0.19 per share at December 31, 2022.

"In Fiscal 2023, Fountain continued to focus on its growth-oriented goals by exiting non-core portfolio investments and capitalizing on investment opportunities in sectors that the Company believes will see rapid growth. While Q4/23 saw the Company realize additional losses from the sale of investments, Fountain believes the disposition of these investments was necessary for the Company to re-position itself to take advantage of market trends. As the Company continues to add new investments to its portfolio, we believe Fountain should see returns on these investments that will help add financial strength to the Company in 2024," said Andrew Parks, CEO of Fountain.

A full set of the 2023 audited financial statements and the management discussion & analysis are available on SEDAR+.

About Fountain Asset Corp.

Fountain Asset Corp. 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 & gas, mining, real estate, manufacturing, retail, financial services, and biotechnology.

We seek Safe Harbor.