Ms. Lois Norris reports

IONIK ANNOUNCES SALE OF POPREACH GAMES PORTFOLIO

Popreach Corp. has sold substantially all of its mobile game portfolio, including its subsidiary, Popreach Technologies Pvt. Ltd. (Popreach India), a live-operation game studio located in Bangalore, India (collectively, Popreach Games) to Phoenix Games Holdings U.K. Ltd. for a total aggregate purchase price of up to $9.8-million (U.S.).

This accretive Transaction allows Ionik to focus on its core advertising and marketing technology business while continuing to expand the capabilities of its first party data platform. It also strengthens the Company's balance sheet while providing financial flexibility for potential future acquisitions.

"The sale of Popreach Games represents another step in reinforcing Ionik's focused mission to provide full suite solutions to brands, advertisers and publishers powered by data and technology," said Ted Hastings, Ionik's Chief Executive Officer. "Phoenix is the perfect home for the Popreach Games business, which will benefit from being part of Phoenix's strategy and vision for its extensive portfolio of mobile free-to-play games. We thank our Popreach Games team members for their hard work and dedication and wish them well under their new ownership."

Key Terms of the Transaction

The Transaction was completed pursuant to a share purchase agreement ("Share Purchase Agreement") and an asset purchase agreement (the "Asset Purchase Agreement"), each entered into on April 26, 2024 between Phoenix and Popreach Incorporated ("Popreach SubCo"), a wholly owned subsidiary of the Company.

Pursuant to the Asset Purchase Agreement, Popreach SubCo sold its intellectual property rights in substantially all of its owned and operated mobile games to Phoenix in exchange for aggregate consideration of up to US$8.3 million, being comprised of US$6.0 million payable in cash on closing of the Transaction ("Closing") and the issuance of a promissory note in the principal amount of US$2.3 million (the "Deferred Note"). The Deferred Note is non-interest bearing and repayable as to (i) US$1.5 million on the 6-month anniversary of Closing, (ii) US$0.6 million on the 12-month anniversary of Closing, (iii) US$0.1 million on the 24-month anniversary of Closing, and (iv) US$0.1 million on the 36-month anniversary of Closing (collectively, the "Deferred Payments"). The Deferred Payments are subject to reduction, if any, in connection with Popreach SubCo's obligations pursuant to the indemnification provision in the Asset Purchase Agreement and Popreach SubCo's satisfactory performance of certain transition services pursuant to a transition services agreement entered into between Popreach SubCo and Phoenix on Closing.

Pursuant to the Share Purchase Agreement, Popreach SubCo sold all of the issued and outstanding shares of Popreach India to Phoenix in exchange for aggregate consideration of US$1.5 million, payable in cash on Closing.

The Transaction has been approved by the Board of Directors of Ionik, acting upon the unanimous recommendation of a Special Committee of independent directors that was established to evaluate the terms of this Transaction and other strategic alternatives.

About Ionik

Ionik, a Tier 1 Issuer on the TSX Venture Exchange, with shares also trading on the OTCQX Best Market, is a data driven marketing technology company focused on assembling the most effective and complete suite of advertising, marketing and monetization solutions for brands, advertisers and publishers while building an extensive proprietary repository of opted-in first party data.

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