Mr. Nicholas Kadysh reports

CORTEXA ADVANCES COMMERCIALISATION OF MDMA SUPPLY IN AUSTRALIA

Pharmala Biotech Holdings Inc. joint venture Cortexa has reaffirmed its market-leading position in FY2026 for MDMA (3,4-methylenedioxymethamphetamine).

Cortexa is a 50/50 joint venture between Pharmala Biotech (Canadian Securities Exchange: MDMA) and Vitura Health (Australian Securities Exchange: VIT). Following completion of the world's largest (and first Australian) GMP (good manufacturing practice) batch of MDMA capsules earlier this financial year, the company has secured supply arrangements with authorised providers nationally to support clinical programs and patient treatment under Australia's regulated prescribing pathways.

Through Cortexa market activities, the majority of the initial batch has now been committed. The Cortexa sales value for these activities will exceed $1.0-million (Australian).

To support current and future requirements, Pharmala has initiated the production of a second GMP batch of a new 20 mg dosage form (another Australian first), which is expected to be available to Cortexa's customers in the second quarter of calendar year 2026.

"This week, Pharmala's management team is meeting with Cortexa's customers and partners across Australia," said Nick Kadysh, founding chief executive officer, Pharmala Biotech. "We're incredibly excited to hear firsthand about the growth in the Australian market, and are exceptionally focused on bringing new innovation to Australia to support its continued rapid growth."

Cortexa's products are manufactured to support local clinical research and patient treatments by Authorised Psychiatrists under the Therapeutic Goods Administration's (TGAs) authorized prescriber scheme. Since July 1, 2023, psychedelics have been available to be prescribed in Australia for the treatment of specific mental health conditions.

The company also confirms that the previously contracted three-year licence arrangement with Pharmala Biotech, which involved annual licence payments of $250,000 for manufacturing and intellectual property rights, concludes during the current financial year (FY2026). The completion of this arrangement continues to allow continuing access to the relevant manufacturing processes and associated intellectual property exclusively provided for the Cortexa joint venture structure. Cortexa will continue to benefit from Pharmala's product development activity, as the joint venture has right of first refusal on any new innovations developed by Pharmala for the Australian market. Pharmala will continue to benefit from the joint venture agreement's royalty provisions.

In parallel, developments in the Australian health care system continue to support the emerging psychedelic therapies sector, including reimbursement initiatives from organizations such as Medibank Private and treatment support programs through the Department of Veterans' Affairs.

Mr. Kadysh also commented on Australia's potential as a route to deliver new and innovative products to patients.

"Cortexa provides Pharmala with a dedicated sales organization and local expertise in the most exciting market for commercial MDMA-assisted therapies, and we're excited to share the fruits of our development to expand this market even further in the coming months -- starting with our 20 mg GMP capsule, and moving on to even more exciting opportunities with our customers."

Cortexa expects these developments to underpin the joint venture's planned commercial growth outcomes for FY2026 and beyond.

About Pharmala Biotech Holdings Inc.

PharmAla Biotech is a biotechnology company focused on the research, development and manufacturing of MDXX class molecules, including MDMA. Pharmala was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials as well as commercial sales in selected jurisdictions, and to develop novel drugs in the same class. Pharmala is the only company currently provisioning clinical-grade MDMA for patient treatments outside of clinical trials. Pharmala's research and development unit has completed proof-of-concept research into several IP families, including ALA-002, its lead drug candidate. Pharmala is a regulatory-first organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators.

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