Mr. Adam Ingrao reports

ALSET AI ACQUIRES CHACO MINERALS DEBENTURE ADDING APPROXIMATELY $1.3 MILLION INVESTMENT TO BALANCE SHEET TO OFFSET LYKEN.AI RECEIVABLES AND STRENGTHEN INVESTMENT PORTFOLIO

Alset AI Ventures Inc. has entered into an assignment and assumption agreement dated May 6, 2026, with its portfolio company Lyken AI computing Inc. (doing business as Lyken.AI), pursuant to which it has acquired an unsecured convertible debenture issued by 1000175307 Ontario Ltd. (dba Chaco Minerals) in the principal amount of $1,248,000 in consideration for the reduction of amounts owing to the company pursuant to certain loans provided by the company to Lyken.

The debenture was originally issued by Chaco on Dec. 9, 2024 (the issuance date), bears interest at a rate of 3.0 per cent per annum, and will mature on Dec. 9, 2026. Subject to early redemption by Chaco, Alset may convert the principal amount, plus accrued but unpaid interest, into units of Chaco consisting of one common share and one warrant at a price of 10 cents per unit. The company and Lyken valued the debenture at $1,301,077.00, calculated as the principal amount plus accrued but unpaid interest since the issuance date. Following completion of the assignment, total amounts owing from Lyken to Alset have been reduced from $1,643,037.52 to $341,960.52.

The company believes the assignment is strategically meaningful as it converts an intercompany receivable into an investment asset, thereby strengthening Alset AI's investment portfolio and enhancing its balance sheet. Further, it materially improves Lyken.AI's balance sheet by reducing debts owing to the company, providing greater financial flexibility as Lyken.AI continues to pursue strategic growth opportunities in cloud compute and AI infrastructure.

Chaco is a lithium exploration company focused on Paraguay's emerging Chaco basin lithium district. The company holds a land package of approximately two million hectares in what it describes as an underexplored lithium district with geological similarities to more established lithium brine regions in South America.

Alset AI believes the assignment is consistent with its broader investment thesis: building exposure to assets and businesses positioned to benefit from the long-term buildout of AI infrastructure. As AI adoption accelerates globally, demand is increasing not only for compute capacity, but also for the energy systems and critical materials needed to support data centres, power continuity, battery storage and grid resilience. The International Energy Agency recently reported that global electricity demand from data centres grew 17 per cent in 2025, while electricity consumption from AI-focused data centres surged 50 per cent in the same year, underscoring the increasing energy intensity of AI deployment. Lithium is a key material in that buildout. Lithium-ion batteries are widely used in uninterruptible power supply systems, backup power architecture and battery energy storage systems that support modern data-centre operations. Google disclosed in 2025 that it had deployed more than 100 million lithium-ion cells across its global data centre fleet. Industry participants are also increasingly highlighting lithium's role in supporting AI-era data centres through backup power, load balancing and renewable integration.

Alset AI believes that direct or indirect exposure to critical materials linked to electrification, energy storage and resilient digital infrastructure is increasingly relevant as AI compute scales globally.

Adam Ingrao, chief executive officer of Alset AI, commented: "The assignment is aligned with our strategy of building Alset AI as an investment platform with exposure to assets that can benefit from the expansion of AI usage. By converting debt owing from Lyken.AI into an investment asset, we strengthen Alset's balance sheet, expand our portfolio of investments and simultaneously improve Lyken.AI's financial position as it advances its strategic growth initiatives. We also view the debenture as thematically aligned with our long-term view that AI growth will drive increasing demand not only for compute, but also for the energy storage systems, batteries and critical minerals that underpin next-generation data-centre infrastructure."

Regulatory matters

No finders' fees were paid in connection with the assignment. The assignment is not considered to be an arm's-length transaction as the company and Lyken are non-arm's-length parties (as defined by the policies of the TSX Venture Exchange). The assignment is not subject to the approval of the TSX-V.

About Alset AI Ventures Inc.

Alset AI is an AI-focused venture investment platform dedicated to sourcing, funding and developing companies across the artificial intelligence value chain. The company seeks to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies.

We seek Safe Harbor.