An anonymous director reports

LIQUID AVATAR TECHNOLOGIES ANNOUNCES NON-BROKERED PRIVATE PLACEMENT FINANCING FOR UP TO $1.0 MILLION

Liquid Avatar Technologies Inc. has arranged a best efforts, non-brokered private placement of units of the company at a price of five cents per unit for gross proceeds of up to $1-million, for which the company has already received select expressions of interest.

Each unit will comprise one common share of the company and one common share purchase warrant. Each warrant shall be exercisable to acquire one common share at price of 10 cents per warrant share, for a period of 36 months from the closing of the offering. Insiders may participate in the offering.

The company intends to use the proceeds raised under the offering for working capital and general corporate purposes.

The securities to be issued under the offering will be offered by way of a private placement in each of the provinces of Canada, and such other jurisdictions as may be determined by the company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. The units to be issued under the offering will have a hold period of four months and one day from closing.

The offering is expected to close on or about July 5, 2022, or on such earlier date at the sole discretion of the company, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals.

In connection with the offering, the company may pay a finder's fee in respect of subscribers introduced to the corporation by an eligible finder of cash up to 7 per cent of the value of the units subscribed for and finder's warrants to acquire the number of common shares equal to up to 7 per cent of the number of units subscribed for, which warrants will be exercisable to acquire one common share at price of 10 cents per share, for a period of 36 months from the closing of the offering.

Insiders of the company may participate in the offering. Pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, the offering constitutes a related party transaction to the extent that insiders of the company subscribe for units. The company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101, specifically: (i) the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b), as the common shares are not listed on a market specified in MI 61-101, and (ii) the minority shareholder approval requirement of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61- 101, as the fair market value of all the units that may be issued will not exceed 25 per cent of the company's market capitalization (as determined under MI 61-101). A material change report is not expected to be filed by the company at least 21 days before the closing of the offering, as the company is seeking to close. In the view of the company, this approach is reasonable in the circumstances.

About Liquid Avatar Technologies Inc.

Liquid Avatar Technologies focuses on the verification, management and monetization of self-sovereign identity, empowering users to control and benefit from the use of their on-line identity.

The Liquid Avatar mobile app, available in the Apple App Store and Google Play, is a verified self-sovereign identity platform that empowers users to create high-quality digital icons representing their on-line personas. These icons allow users to manage and control their digital identity and verifiable access and identity credentials and to use liquid avatars to share public and permission-based private data when they want and with whom they want.

The Liquid Avatar verifiable credentials ecosystem (LAVCE) has been developed to support all participants in a digital credential ecosystem, including the holder, issuer and verifier, using state-of-the-art blockchain and open standards technologies initially as a node on the Indicio Network. The company is a voting and steering committee member of the Trust over IP Foundation, founding and steering committee member of Cardea, a Linux Foundation Public Health project, member of the Good Health Pass collaborative, DIACC, the COVID Credentials Initiative (CCI), The Linux Foundation, and a founding member of the Lumedic Exchange.

The company has a suite of early-stage programs that support the Liquid Avatar mobile app program, including Liquid Shopz, a cash back and reward program that has over 600 leading on-line merchants, which is in the prelaunch phase, and is working to release its own branded network payment card in the United States, the LQID Card, with the world's first metaverse rewards program.

The company's subsidiary, Oasis Digital Studios, is a creative and development agency that supports a wide range of artists, talent and enterprises with non-fungible token (NFT) solutions. Oasis owns 50 per cent of and controls the Aftermath Islands metaverse program.

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