Mr. Kevin Hoffman reports

KADESTONE CAPITAL CORP. CLOSES SECOND TRANCHE OF CONVERTIBLE NOTE FINANCING

Kadestone Capital Corp. has closed the second tranche of its non-brokered private placement announced on Feb. 25, 2026, of secured convertible notes and common share purchase warrants. Pursuant to the second tranche of the private placement, the company issued two convertible notes in the aggregate principal amount of $330,000 and 660,000 warrants. Together with the proceeds of the first tranche of the private placement, the company has raised aggregate gross proceeds of $1.98-million. The company also announces that it is extending the private placement, under the same terms as previously disclosed, until April 30, 2026.

The convertible notes will mature on the date that is 36 months after issuance, subject to acceleration upon the occurrence of an event of default, and will bear interest at a rate of 10 per cent per annum, compounded monthly and payable on redemption or conversion. On the maturity date, the principal amount of the convertible notes, together with accrued and unpaid interest, will be convertible into common shares in the capital of Kadestone at the option of the holder at a conversion price of 50 cents per common share. Notwithstanding the foregoing, any conversion of interest accrued on the convertible notes, including the conversion price applicable thereto, will be subject to the prior approval of the TSX Venture Exchange. For additional information regarding the convertible notes, please refer to the company's news release dated March 11, 2026.

Each warrant will entitle the holder to purchase one common share at a price of 60 cents per common share for a period of 36 months from issuance, subject to customary adjustments.

The proceeds of the second tranche closing will be used to pay down debt and for general corporate purposes.

The securities issued pursuant to the second tranche of the private placement, including any underlying common shares, will be subject to a four-month-and-one-day statutory hold period, expiring Aug. 11, 2026, in accordance with applicable Canadian securities laws. The private placement remains subject to the final approval of the TSX-V.

About Kadestone Capital Corp.

Kadestone was established to pursue the investment in, acquisition, development and management of residential and commercial income-producing properties, and procurement and sale of building materials within major urban centres and high-growth, emerging markets in Canada. The company operates five complementary business lines spanning building materials procurement and supply, property development and construction, construction finance, asset ownership, and property management. These synergistic business lines have solidified Kadestone's vision to become a market-leading vertically integrated property company.

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