Mr. Avtar Dhaliwal reports

PONTUS PROTEIN ANNOUNCES CLOSING OF TRANSACTION FOR THE SALE OF ASSETS AND TRANSFER TO NEX

Further to its news releases of Nov. 3, 2022, Dec. 3, 2022, and Jan. 3, Pontus Protein Ltd. has closed the sale of substantially all of the company's assets, more particularly all of those assets used in its aquaponics farming business, to CEVAS Technology Inc., pursuant to the asset purchase agreement dated Nov. 3, 2022, between the company and CEVAS.

Pursuant to the terms of the Purchase Agreement, the Company has sold the aquaponics segment to CEVAS for consideration consisting of (i) $200,000 payable in cash, and (ii) the assumption of up to $3,500,000 in liabilities and obligations of the Aquaponics Segment, including accounts payable, liabilities and obligations under any contract or lease related to the Aquaponics Segment.

The Sale Transaction will provide the Company the opportunity to reduce its overall liabilities and to focus on its other business segment that provides catering and product consultation services to its customers (the "Catering Business"). Accordingly, the management and board of directors of the Company determined that this was a unique opportunity to restructure itself, focus on the Catering Business and consider strategic opportunities.

The Sale Transaction received the approval of its shareholders at its annual and special meeting of shareholders on December 23, 2022 (the "Meeting") in which more than 98% of the shares represented at the Meeting voted in favour of the sale of the Aquaponics Segment to CEVAS. The Sale Transaction has also received applicable regulatory and stock exchange approvals (including approval of the TSX Venture Exchange (the "TSX-V")).

The Company has received "conditional acceptance" of the terms of the disposition but is subject to TSX-V "final acceptance".

Transfer of Listing to NEX

Following the completion of the Sale Transaction, the Company will no longer meet the continued listing requirements for the TSX-V and anticipates the listing of the Company's shares to be transferred to the NEX, a separate board of the TSX-V following the closing of the Sale Transaction. Trading in the common shares of the Company is currently suspended and will remain suspended until the failure-to-file cease trade order has been revoked.

About Pontus Protein Ltd.

This is our future - the future of farming; Pontus Protein Ltd. is a Vancouver-based agricultural food and technology company focused on creating and acquiring the best technology. Highly sophisticated, AI-engineered robots, combined with our proprietary vertical farming and a commitment to sustainability. Our intellectual property optimizes efficiency for a shorter growing time and high productivity. We deliver healthy, affordable foods and nutrients into every diet in a closed, controlled environment avoiding all pesticides and GMOs.

Pontus Protein is publicly traded in Canada (TSXV:HULK), the United States (OTCQB: HLKKF) and Germany (FSE: 8YC) and you can find out more on our SEDAR profile.

We seek Safe Harbor.