Mr. Tom Wenz reports

IMPACT DEVELOPMENT ANNOUNCES APPROVAL OF LOAN, ENGAGEMENT OF MARKET MAKER, AND ISSUANCE OF RESTRICTED SHARE UNITS

Further to the press release of Dec. 29, 2023, the TSX Venture Exchange has approved the issuance of secured debentures for proceeds up to $4.5-million (U.S.), and Impact Development Group Inc. has issued the secured debenture to an arm's-length lender in connection with the financing.

Pursuant to the terms of the financing, funds advanced as a loan to the company shall bear interest at a rate of 12 per cent per annum, payable quarterly, with a scheduled maturity date of Nov. 30, 2025. Interest payments shall be deferred and accrued with the first interest payment occurring on Jan. 31, 2025. Funds representing the loan pursuant to the financing shall be advanced each month, with the final tranche to be advanced on or before July 31, 2024.

In connection with the financing, the company shall issue warrants exercisable for the purchase of common shares of the company upon receipt of each tranche. The amount of warrants issued by the company in connection with each tranche will be equal to the Canadian-dollar value of the tranche divided by the closing price of the company's common shares on the financing date of each tranche. The warrants shall have an exercise price equal to a 10-per-cent premium to the 10-day volume-weighted average trading price of Impact Development's common shares on the TSX-V on the 10 trading days prior to the financing date of each tranche. The warrants shall be exercisable for a period of three years from the date of issue, subject to accelerated expiry in accordance with the policies of the TSX-V.

Market-maker

The company is pleased announce that it has retained Integral Wealth Securities Ltd. to provide market-making services in accordance with TSX-V policies. Integral will trade common shares of the company on the TSX Venture Exchange to maintain an orderly market, improve the liquidity of the company's common shares and provide the company with market intelligence.

Under the terms of its agreement, Integral will receive a $7,500-per-month cash fee for a minimum period of three months. After the three months, the agreement with Integral may be terminated by the company at any time upon 30 days written notice.

The company and Integral are unrelated entities. Integral has no present, direct or indirect interest in the company or its securities. There are no performance factors in the agreement, and Integral will not receive shares or options as compensation. Integral is a member of the Canadian Investment Regulatory Organization. Integral is a member firm of the Toronto Stock Exchange, TSX-V, TSX Alpha Exchange and others, giving it access to all trading platforms across Canada.

Issue of restricted share units

The company further announces today that it has issued a total of 116,568 restricted share units of the company to directors and consultants of the company pursuant to the omnibus equity incentive plan of the company dated June 21, 2023. Each RSU is exercisable into one common share of the company. The RSUs will vest in varying amounts over a two-year period from the date of issuance.

About Impact Development Group Inc.

Impact Development is a Panama-based real estate developer that provides affordable housing solutions to Panama's growing middle class supported by a long-standing subsidized government program. The vision of IHC Panama is effectuated by a vertically integrated model, which co-ordinates all services necessary to develop high-quality residential and commercial buildings, including land acquisition, financing, architectural, engineering, off-site manufacturing, general contracting, property management and administration.

We seek Safe Harbor.