Mr. David Lucatch reports

LIQUID AVATAR TECHNOLOGIES RECEIVES OFFER TO SELL METAVERSE AND PROOF OF HUMANITY PROGRAMS

Liquid Avatar Technologies Inc. has received a non-binding offer for its controlled subsidiary, Aftermath Islands Metaverse Ltd., and its Liquid Avatar mobile app from a private Swiss-based metaverse and virtual experience organization. Contingent on financing in an amount to be agreed, final agreements and financial terms being agreed, and all necessary approvals, the transaction, should it come to fruition, is expected to provide Liquid Avatar Technologies with cash, primarily for debt reduction, and an expected significant amount of equity in the new parent company.

Management and the board of directors believe that this opportunity provides long-term optimal value for shareholders and is working with all parties to complete due diligence. The teams have undertaken to begin working on definitive agreements. Completion of the transaction will require all necessary corporate, shareholder and any regulatory approvals. Additional information will be provided on this potential transaction upon definitive agreements being executed. During this period, the company will remain focused on completing this opportunity as it does not have the resources to finalize its outstanding financial statements in order to seek a revocation of the existing cease trade order.

Aftermath Islands Metaverse may continue to pursue its own, non-dilutive financing efforts in the short term. As announced in April, 2023, Aftermath Islands received an executed share purchase agreement from a family office in the United Kingdom and European Union, but has yet to receive any funding. As a result of these unfulfilled obligations on the part of the family office, Aftermath Islands Metaverse is in the process of terminating that agreement and may seek other financing opportunities.

As part of its continuing marketing and business efforts, Aftermath Islands Metaverse has achieved almost $3-million (U.S.) in gross retail and commercial sales since the start of the program in November, 2021, which have been recorded as deferred revenue in accordance with IFRS (international financial reporting standards), with approximately 8,000 purchases made through the Shopify store, and the company is continuing to execute its business plan to the best of its abilities under the current circumstances, including meeting a number of key technology milestones. Lost Kingdom of T'Sara users have generated, since late October, 2022, almost eight million resource pack NFTs (non-fungible tokens) for use inside of Aftermath Islands.

Aftermath Islands is currently developing an artificial intelligence-powered creator program, allowing users to perform karaoke songs through their avatars. Users can sing into a phone or Web cam, and the platform will take their facial gestures and head movement and, using AI, map that to their avatar, which can sing any one of over 10,000 licensed karaoke songs. This program is expected to debut later this year and has already received interest from a number of major platforms.

The company continues to expand its program opportunities with the Liquid Avatar mobile app and is pursuing additional opportunities outside of Aftermath Islands to integrate its technology for proof of humanity into other platforms.

"This has been a difficult time for many micro-cap public companies, including our own. Management and the team members continue to work diligently to create long-term value. We are excited by this opportunity to consolidate our programs and believe that this will potentially provide the best solution for shareholders given the current economic environment," said David Lucatch, chief executive officer Liquid Avatar Technologies.

Aftermath Islands' early-stage experience is currently available, through a mobile, tablet or computer browser, with no downloads, at its website, and it is continuing to add new and exciting experiences to its open world.

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 will 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 and the Covid Credentials Initiative (CCI).

The Meta park pass is a W3C-verifiable credential designed for interoperability. The Meta park pass contains a verified phone number with country code and an AI (artificial intelligence) reviewed, self-attested age and can be expanded to include other unique credentials. Users will be able to login into multiple supported metaverses with little friction; the platform knows they are a real and unique user. Additional credentials can grant access as each metaverse matures and provides additional services and experiences.

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, which remains in development.

The company's subsidiary, Oasis Digital Studios, is a creative and development agency that is focused on providing digital goods and services expertise to its clients.

About Aftermath Islands Metaverse Ltd.

Aftermath Islands Metaverse is a Barbados corporation, which is 50 per cent owned and is controlled by Oasis Digital Studios, a wholly owned subsidiary of Liquid Avatar Technologies.

Aftermath Islands Metaverse is an open-world, realistic graphic virtual world where users can buy, develop, trade and sell virtual land (VL), property and items, like buildings, crafted items, transport and other items, all through in-game collectible NFTs, a non-fungible token that represents the ownership of virtual and other items. Built on cutting-edge blockchain technologies and using GPU cloud servers, pixel streaming and the high-fidelity graphics of unreal engine 5.2, Aftermath Islands delivers rich, no download, browser-based experiences for users on desktops, mobile devices and tablets.

We seek Safe Harbor.