Ms. Meris Kott reports

PEGASUS MERCANTILE ANNOUNCES DEBT SETTLEMENT

Pegasus Mercantile Inc. has agreed to settle an aggregate of $347,631.27 in debt through the issuance of restricted common shares.

The company has agreed with certain of its creditors to issue an aggregate of 1,738,156 restricted common shares to such creditors in exchange for outstanding accounts payable in the aggregate amount of $347,631.27 owing to certain creditors. The settlement shares are being issued at a deemed price of 20 cents, in accordance with the policies of the Canadian Securities Exchange (CSE). The company is completing the shares-for-debt transaction to improve its financial position by reducing its existing liabilities.

As part of this debt settlement, Pegasus entered into a settlement and release agreement with a previous adviser to the company for $59,118.82, detailed and filed by the company in the CSE April Form 7. The company will issue an aggregate of 98,531 restricted common shares to settle $19,706.27, a portion of this outstanding debt. The remaining balance will be paid in equal monthly instalments of $2,189.59 over a period of 18 months.

The restricted securities issued in connection with the debt settlement will be subject to a statutory hold period of four months plus a day from the date of issuance, in accordance with applicable securities legislation.

Pursuant to the policies of the CSE, the debt settlement will close five business days from the date of this press release. The shares-for-debt transaction remains subject to CSE acceptance.

About Pegasus Mercantile Inc.

Pegasus is a prospect generator that provides high-growth companies with technology, financial, operational and management assistance in the fast-growing market for global wellness products and novel consumer goods and services.

We seek Safe Harbor.