Mr. Robert Thast reports

IZOTROPIC SIGNS LETTER AGREEMENT FOR REGIONAL OPERATIONS IN AFRICA & THE GCC

Izotropic Corp. has entered into a letter agreement with a business group (BG) to establish an entity named Izotropic Africa, based in Casablanca, Morocco. The entity is intended to license, market, distribute, and evaluate manufacturing and/or assembly of the IzoView breast CT (computed tomography) product and certain follow-on products in all of Africa and the Gulf Cooperation Council (GCC): Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The establishment of Izotropic Africa is intended to expand the company's commercial footprint into regions where access to advanced breast imaging remains limited, positioning Morocco as a strategic gateway for deployment, regulatory engagement and potential future regional manufacturing initiatives. Breast cancer is the most prevalent cancer among African women, with over 200,000 annual cases and mortality rates exceeding 50 per cent due to delayed diagnoses and limited access to advanced care. The addressable market for advanced imaging and oncology devices in Africa is projected to exceed $500-million (U.S.) by 2030, reflecting significant unmet demand and long-term regional growth potential.

Under the terms of the agreement, the parties will incorporate the entity and establish a local office for operations, with BG holding a 60-per-cent fully diluted interest and Izotropic holding a 40-per-cent fully diluted interest, subject to final corporate, tax, regulatory, repatriation structuring and legal advice acceptable to both parties, and have agreed to negotiate in good faith to finalize and enter into a formal agreement by April 30, 2026, which will define the detailed material terms and commitments contemplated in the agreement. The agreement will terminate upon execution of the formal agreement or if the parties fail to enter into the formal agreement by that date.

Under the agreement, BG has committed to developing and executing an annual business plan focused on the sales, marketing and distribution of IzoView and any follow-on products in Africa and the GCC. BG has further committed to securing a major hospital site in Morocco in Q1 2026 for installation of an IzoView breast CT imaging system to serve as a research data collection and clinical study and approval location forming the foundation for regulatory engagement and market entry within the region, initiating approval processes with government health ministries in the designated territories, and assessing the feasibility of establishing manufacturing and/or assembly capabilities in Morocco to serve Africa and the GCC.

Izotropic is committed to supporting the establishment of the entity through technical, clinical and operational participation, including the intention to build, ship and install the first IzoView breast CT imaging system for research and clinical approval processes in Morocco in partnership with the aforementioned designated hospital, subject to execution of the formal agreement and securing the required financing. The parties have agreed upon an estimated first-year start-up budget, pursuant to which Izotropic's 40-per-cent share is estimated at $120,000 (U.S.). Izotropic has agreed to advance 25 per cent ($30,000 (U.S.)) for the first three-month period against its portion of those estimated costs. All financial contributions and operational commitments of Izotropic beyond the initial capital advance remain expressly subject to execution of the formal agreement and securing of financing.

We seek Safe Harbor.