Mr. Jeffrey Hasham reports

REDISHRED CAPITAL CORP. ("REDISHRED", OR THE "COMPANY") ANNOUNCES Q1 2023 RESULTS WITH RECORD CONSOLIDATED REVENUE AND EBITDA

Redishred Capital Corp. has released its financial results for the first quarter of 2023.

Quarterly Earnings Call:

8:30am EST, May 29, 2023, Participant call in number is 1-800-319-4610

Quarterly Highlights:

Consolidated Highlights:

The Company generated record revenue of $17.0 million CAD, growing $4.5 million CAD, or 36% versus Q1 2022.Consolidated EBITDA for Q1 2023 was a record $4.7 million CAD, growing $0.7 million CAD, or 17% versus Q1 2022.

The growth in consolidated EBITDA was driven by organic growth from increased bookings for existing and new customers, growth from acquisitions completed in the past twelve months; and price increases.

Free Cash Flow for Q1 2023 was $2.4 million CAD, growing $0.8 million CAD, or 48% versus Q1 2022, driven by higher cash generated from operating activities from higher EBITDA and more favourable changes in non-cash operating working capital, partially offset by higher capital expenditures to support the Company's growth.

Corporate Locations Highlights:

Corporate location revenue for Q1 2023 grew 37% versus Q1 2022 to $16.4 million CAD (28% constant currency growth - US Dollars is the constant currency).Corporate location EBITDA grew 23% versus Q1 2022 to $6.1 million CAD (15% constant currency growth).

Same corporate location EBITDA was $5.6 million CAD, growing 13% versus Q1 2022 (6% constant currency growth).

Capital Management:

The Company generated $3.6 million CAD in cash from operations during Q1 2023.As at March 31, 2023, the Company has $6.3 million CAD in cash, $1 million CAD available on its operating line of credit, and $3.8 million CAD available on its non-revolving re-advanceable term loan.

Management's Comments on Q1-2023

Jeffrey Hasham, the Company's Chief Executive Officer, noted "We are very pleased with our results in the first quarter of 2023. We continue to see strong demand for our services, including our core shredding service offering, which, coupled with continued strong recycling revenue and increases in our e-waste business, has helped drive our organic revenue growth. The revenue from our Proscan business is in part dictated by timing and approval of customer budgets, which impacts when the Company can perform these services. Our pipeline of scanning projects remains strong.

From a cost perspective, we have started to see some signs of easing, particularly in driver wage inflation and fuel pricing. The Company is reviewing its pricing and will look to increase prices in 2023 in response to cost increases. The Company also expects to realize further synergies from recently completed acquisitions related to route densification and optimization that should help enhance future margins.

Revenue Growth in Q1-2023

The Company achieved 36% total revenue growth and 27% total revenue growth in constant currency during Q1 2023 versus Q1 2022 primarily due to acquisitions conducted during the last 12 months, organic sales growth from new customers and price increases.

Corporate Locations

Total corporate location revenue and EBITDA grew by 37% and 23%, respectively, in Q1 2023 versus Q1 2022 due to the acquisitions completed over the past twelve months, organic growth from same locations, and price increases.

Same corporate location revenue and EBITDA grew 21% and 13%, respectively, in Q1 2023 verses Q1 2022.

Community and Social Commitment

Our locations under the PROSHRED(TM) banner conduct numerous community shredding events. These events provide an opportunity for our clients, clients' employees, local businesses and local residents to ensure their personal and confidential materials are securely destroyed. In addition to helping to reduce identity theft, several of these events allow for donations to various not-for-profit organizations. PROSHRED(TM) is also proud that 100% of the shredded material is recycled, as our continued goal is to foster the use of fewer trees in the production of all paper products. Future community shredding event locations can be found on our website, www.proshred.com. Our annual national Shred Cancer event will be held in June of 2023 at various Proshred locations. These events are held to raise research funds for the American Institute for Cancer Research ("AICR"). It is our goal as a Company and Franchise System to support AICR in their endeavor to prevent cancer and possibly cure this disease. So far, PROSHRED(TM) has raised over USD$205,000 for this cause. Please visit www.proshred.com/aicr for more information on this effort.

Financial Statements

Redishred's March 31, 2023 Financial Statements and Management's Discussion and Analysis will be available on www.sedar.com and www.redishred.com.

About Redishred Capital Corp.

Redishred Capital Corp. ("Redishred") is the owner of the PROSHRED(TM), PROSCAN and secure e-Cycle brands, trademarks and intellectual property in the United States. Redishred digitizes, secures, shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. Redishred is a pioneer in the mobile document destruction and recycling industry and has the ISO 9001:2015 certification. It is Redishred's vision to be the 'system of choice' in providing digital retention, secure shredding and recycling services on a global basis. Redishred Capital Corp. grants PROSHRED` and PROSCAN franchise businesses in the United States and by way of a license arrangement in the Middle East. Redishred also operates fifteen corporate businesses directly. The Company's plan is to grow its business by way of both franchising and the acquisition and operation of information security businesses that generate stable and recurring cash flow through a scheduled client base, continuous paper recycling and concurrent unscheduled shredding service.

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