File: Attachment 2025-12-15 Pegasus Debt.pdf

Pegasus Mercantile Inc. Announces Debt Settlement

Vancouver December 15, 2025 Pegasus Mercantile Inc. (CSE: LOAN) (OTC: XTCYF) ("the Company) announces that it has agreed to settle an aggregate of CA$122,000 in debt through the issuance of restricted common shares.

The Company has agreed with certain of its creditors to issue an aggregate of 2,440,000 common shares (the "Settlement Shares") to such creditors in exchange for their accounts payable and loans (the "Shares for Debt Transaction") in the aggregate amount of CA$122,000 (the "Debt") owing to certain creditors (the "Creditors"). The Settlement Shares are being issued at a deemed price of $0.05, in accordance with the policies of the Canadian Securities Exchange (the "CSE").

The 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 Canadian Securities Exchange, 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

"The Company is working diligently to file our annual statement next month. This debt settlement will help improve our financial position by reducing our existing liabilities. We are reviewing new opportunities from our current advisors and looking forward to sharing them with our shareholders in the near future," said Meris Kott, CEO.

About Pegasus Mercantile Inc.

The Company is a prospect generator that provides high growth companies with advisory services, including technology, financial, operational and management assistance. It is currently focused in the fast growing market for global wellness products and novel consumer goods and services.

For information visit website: www.pegasusmercantile.com

Contact Meris Kott, CEO info@pegasusmercantile.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this release may constitute "forward looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward- looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward- looking information contained herein.