Ms. Meris Kott reports

PEGASUS MERCANTILE FFCTO STATUS UPDATE

Pegasus Mercantile Inc. has provided a default status update further to the company's announcement on Feb. 4 of its failure-to-file cease trade order pertaining to the delay of the filing of its annual financial statements.

As previously reported, the B.C. Securities Commission issued a failure-to-file cease trade order dated Feb. 4, 2026, due to the company not being able to file its annual financial statements and management's discussion and analysis for the year ended Sept. 30, 2025, on SEDAR+ by Jan. 28, 2026. Further, as a result of the FFCTO, the Canadian Securities Exchange suspended trading in the company's shares. The FFCTO will remain in place until such time as the annual financial filings and all continuous disclosure requirements have been satisfied and the company receives an order from the BCSC revoking the FFCTO.

The company's management, together with its audit committee, has been working diligently with its auditor to provide all necessary information and complete the required documents to release the annual financial filings. The company intends to continue to issue weekly default status reports. The company confirms that there is no other material information relating to its affairs that has not been generally disclosed. Management is reviewing due diligence materials for letters of intent already in the pipeline.

About Pegasus Mercantile Inc.

Pegasus is a prospect generator that provides high-growth companies with financial, operational and management assistance. The company has expanded and is entering a new phase of diversification. The focus of the company has been on global wellness, psychedelics, mycology, hemp and cannabidiol, health-care-related target companies, and their clinical studies and trials.

We seek Safe Harbor.