Mr. Stephane Ouellette reports

FRNT FINANCIAL ANNOUNCES COST REDUCTION PROGRESS AND UPDATE ON STRATEGIC ALTERNATIVES REVIEW

FRNT Financial Inc. has provided an update on its operational and financial progress in the third quarter of fiscal 2026 and on the previously announced strategic alternatives review.

Cost structure update

The company executed a comprehensive cost reduction program during the second quarter, reducing operating costs by approximately 40 per cent for the quarter, with many of the underlying reductions not fully realized until March, 2026. Reflecting the timing of these actions, FRNT's cost reductions as of Q2 2026 are estimated to be in the range of 60 per cent to 70 per cent on an annualized basis. These reductions were achieved without a material impact to revenues.

Applying a go-forward annualized cost assumption, FRNT was profitable on a cash basis during the month of April, 2026.

Strategic alternatives review update

Further to the company's press release dated May 13, 2026, the initiation of the strategic review has generated a range of preliminary inquiries from prospective counterparties, which the company and its board are currently reviewing and assessing.

Stephane Ouellette, chief executive officer of FRNT, commented: "The work our team has done this quarter has meaningfully improved FRNT's cost base while preserving the revenue-generating capabilities that define the franchise. Achieving cash-basis profitability in April, combined with the inbound interest received since announcing the strategic review, gives us increased confidence as we evaluate the right path forward for shareholders."

Throughout the strategic review, management remains focused on day-to-day operations and its commitment to clients, shareholders, partners and employees. There can be no assurance that the strategic review will result in any transaction or any particular outcome. The strategic review is continuing, and the company has not set a definitive timetable for its completion.

About FRNT Financial Inc.

FRNT is a digital asset investment bank offering capital markets and advisory services to institutional investors participating in or entering the space. The company aims to bridge the worlds of traditional and Web-based finance with a technology-forward and compliant operation. Business lines include deliverable trading services, structured derivative products, merchant banking, advisory, consulting, lending origination and principal investments. Headquartered in Toronto, FRNT was co-founded in 2018 by Mr. Ouellette.

We seek Safe Harbor.