Mr. Rob Anson reports

FOBI AI INC. ANNOUNCES REINSTATEMENT TO TRADING ON TSX VENTURE EXCHANGE AND OTHER CORPORATE UPDATES

The TSX Venture Exchange has accepted the reinstatement to trading in respect of Fobi AI Inc.'s common shares on the TSX-V under the symbol FOBI. Trading in respect of the company's shares is expected to recommence shortly following issuance of a TSX-V bulletin in connection therewith.

The board of directors and the audit committee of the company currently comprises three members, being Rob Anson, the chief executive officer of the company, Jeffrey Hyman, the chief financial officer of the company, and Peter Green, an independent director of the company. Accordingly, the company is not currently in compliance with applicable securities law and TSX-V requirements on board and audit committee composition. The company is actively seeking additional directors to facilitate compliance with applicable securities law and TSX-V requirements on board of directors and audit committee composition.

The company is not currently in compliance with TSX-V and applicable legal requirements on the holding of its annual general meeting as its last annual general meeting was held on June 6, 2024. The company intends to hold its next annual general meeting by no later than Oct. 8, 2026.

As of March 31, 2026, the date of its most recently available financial statements, the company had a working capital deficiency of $4,630,223. The company is actively exploring avenues to resolve its working capital deficiency, including, without limitation, additional equity based offerings or other financing opportunities.

The company inadvertently recorded a subscription liability of $1,250,200 during the three and nine months ended March 31, 2026, in relation to its non-brokered private placement of units, which closed in tranches on Jan. 23, 2026, Feb. 3, 2026, and March 19, 2026. As all subscription funds were received and all corresponding securities were issued on or before March 19, 2026, the proceeds should have been presented within shareholders' equity and the subscription liability was recorded in error. The correction from the error reclassifies $1,250,200 from liabilities to equity, reducing the company's working capital deficiency at March 31, 2026, from $4,630,223 as noted in its financial statements to $3,380,023; however total assets and cash are unaffected. The company will correct the presentation in its audited consolidated financial statements for the year ended June 30, 2026, and, as applicable, in accordance with the prior-period error disclosures required by IAS 8 when the comparative information is next presented.

The company has also implemented a new financial control and reporting plan to ensure enhanced compliance with financial reporting requirements, including structured preparation and review protocols for its financial reports, including specified review procedures by management and board, and improved organization and communication protocols to ensure all members of its financial reporting team are kept informed on all material transactions. The company believes that the implementation of this new plan will reduce the risk of future errors in financial reporting. The company also intends to seek to add additional members to its financial reporting team and audit committee following resumption of trading when appropriate candidates are identified.

Additionally, the company previously engaged Independent Trading Group (ITG) Inc. to provide market-making services in accordance with TSX-V policies pursuant to a market-making services agreement dated April 24, 2020. ITG traded securities of the company on the TSX-V with the objective of maintaining an orderly market of the company's securities. In consideration of the services provided by ITG, the company paid ITG a monthly fee of $6,500, plus applicable taxes. There were no performance-based factors in the compensation. ITG did not receive shares or options as compensation, however, ITG and its clients may have, or may acquire, a direct interest in the securities of the company from time to time in the ordinary course and in compliance with applicable laws and TSX-V policies. ITG and the company are arm's-length parties to each other. ITG is a member of the Canadian Investment Regulatory Organization. The capital and securities required for any trade undertaken by ITG as principal were provided by ITG. The ITG agreement was terminated on June 30, 2024, following which all services provided by ITG ceased.

ITG is a Toronto-based CIRO dealer-member that specializes in market making, liquidity provision, agency execution, ultralow-latency connectivity and bespoke algorithmic trading solutions. Established in 1992, with a focus on market structure, execution and trading, ITG has leveraged its own proprietary technology to deliver high-quality liquidity provision and execution services to a broad array of public issuers and institutional investors.

The company also previously engaged DS Market Solutions Inc. (DSMS) to provide market-making services in accordance with TSX-V policies to the company pursuant to an agreement dated July 2, 2024. DSMS traded securities of the company on the TSX-V with the objective of providing liquidity and stability and enhancing market depth with respect to the company's securities. In consideration of the services provided by DSMS, the company paid DSMS a monthly fee of $5,000, plus applicable taxes. There were no performance-based factors in the compensation. DSMS did not receive shares or options as compensation, however, DSMS and its clients may have, or may acquire, a direct interest in the securities of the company from time to time in the ordinary course and in compliance with applicable laws and TSX-V policies. DSMS and the company are arm's length parties to each other. The capital and securities required for any trade undertaken by DSMS as principal were provided by DSMS. The DSMS agreement was terminated effective on Jan. 2, 2025, following which all services provided by DSMS ceased.

DSMS is an equity trading adviser to issuers seeking to enhance liquidity in their publicly traded securities. DSMS is based in Mississauga, Ont., and can be contacted at davidsears@dsmarketsolutions.com and via its website. David Sears in the sole owner of DSMS and provided the services on behalf of DSMS.

The company also previously engaged Outside the Box Capital Inc. (OTB) to provide social media marketing services in accordance with TSX-V policies to the company pursuant to an agreement dated April 13, 2023. Pursuant to the OTB agreement, OTB provided certain social media marketing services to the company, including, without limitation, planning content to be posted to the company's social media channels, assisting in social media and other community driving mediums, and distributing company insights and announcements. The OTB agreement was terminated effective June 22, 2023, following which all services provided by OTB ceased. In consideration of the services provided by OTB, the company paid OTB a fee of $16,660 and granted OTB 260,000 incentive stock options of the company at an exercise price per option equal to 38.5 cents vesting over 12 months in equal tranches per three-month period, all of which expired in accordance with the terms of the company's equity incentive plan in connection with the termination of the OTB agreement. None of the options vested or were exercised prior to the termination of the OTB agreement. There were no performance-based factors in the compensation. OTB did not receive shares as compensation, however, OTB and its clients may have, or may acquire, a direct interest in the securities of the company from time to time in the ordinary course and in compliance with applicable laws and TSX-V policies. OTB and the company are arm's length parties to each other.

OTB is a marketing services firm with an address at 2202 Green Orchard Place, Oakville, Ont., L6H 4V4, (phone: 289-259-4455, email: jason@outsidethebox.capital).

About Fobi AI Inc.

Fobi AI is a data and artificial intelligence (AI) technology company that enables digital transformation through real-time data, mobile-wallet engagement and Web 3-ready solutions. By integrating strategy, technical architecture and execution, Fobi helps clients across retail, sports, health care and regulated industries translate digital initiatives into measurable business results.

We seek Safe Harbor.