Mr. Corey Giasson reports

MUSTGROW RECEIVES FIRST MILESTONE PAYMENT FROM BAYER AG

Mustgrow Biologics Corp. has received the first milestone payment from Bayer AG, which was payable under the licence and collaboration agreement entered into in December, 2023.

Under the terms of the agreement, Bayer has access to Mustgrow's mustard-based biocontrol technologies covering soil applications in Europe, Middle East and Africa (Bayer territory). This first milestone payment was linked to technical product development milestones. Going forward, potential additional milestone payments payable to Mustgrow are linked to additional achievements. Upon commencement of commercial sales, if any, Mustgrow will also be entitled to fees from royalties and manufacturing sales. Unless terminated earlier as provided in the agreement, the term of the agreement shall continue until the expiration of all intellectual property licensed to Bayer under the agreement.

Under the agreement, Bayer is responsible for regulatory and market development work within the Bayer territory in the respective field of use necessary to commercialize Mustgrow's mustard-based biocontrol technologies, including the development of the formulated product, conducting relevant regulatory data studies for regulatory submissions, filing regulatory submissions, registration with relevant regulatory authorities, and support, marketing and commercial sales activities. Mustgrow estimates that the value of the upfront, milestone payments and development work could approximate $35-million (U.S.) to $40-million (U.S.) over the next five to seven years. The value and the timeline associated with completing the development work is not knowable with precision at this time for a variety of reasons, including risks relating to product development and regulatory matters and the nature of collaboration agreements, which are described more fully in Mustgrow's annual information form for the year ended Dec. 31, 2025, which is available under the company's profile at SEDAR+. Because of the nature of the licensing arrangement, other than costs associated with providing product for testing, there are minimal incremental costs to Mustgrow in pursuing the development work. Pursuant to the terms of the agreement, the first milestone payment amount, specific technical product development milestones, and assumptions underlying Mustgrow's estimates of the value of the upfront, milestone payments and development work are considered confidential information, and therefore such details are omitted from this news release.

"Growers require new sustainable, effective and affordable solutions to meet their needs in the future. Growing the toolbox, complementing existing technologies and introducing new possibilities is critical to address tomorrow's challenges in the fields," said Ralf Glaubitz, head of crop protection product team biologicals at Bayer's crop science division. "For us, a strong network and partners like Mustgrow are key to accelerate the development of innovative biological solutions to broaden the toolbox and to bring the necessary crop protection innovations one step closer to where they are needed."

"Receiving this first milestone payment from Bayer under the agreement marks another significant validation for Mustgrow," remarked Corey Giasson, president and chief executive officer of Mustgrow. "Bayer is a global leader in crop science and sustainable agriculture, and has been an excellent partner for Mustgrow in Europe, the Middle East and Africa. This first milestone payment from Bayer continues to validate the need for sustainable biological technologies in the agriculture market and the efficacy of our biocontrol technology, TerraMG."

About Mustgrow Biologics Corp.

Mustgrow Biologics is a provider of innovative biological and regenerative agriculture solutions designed to support sustainable farming. The company's technology is centered on harnessing the natural defence mechanisms and organic compounds found in mustard seed and formulating them into organic biofertility, biostimulant, and biocontrol products. These solutions are designed to protect soil health and the soil microbiome, support plant health, and contribute to global food security through more sustainable agricultural practices. In the United States, Mustgrow's flagship biofertility product, TerraSanteT, is registered, organically certified and commercially sold in key agricultural states, including California. Outside of North America, Mustgrow is focused on collaborating with leading global agriculture companies, such as Bayer AG in Europe, the Middle East and Africa, to commercialize its wholly owned proprietary products and technologies. The company is dedicated to driving shareholder value through the commercialization and expansion of its intellectual property portfolio, which includes approximately 110 issued and pending patents. Mustgrow is publicly traded on the TSX Venture Exchange under the symbol MGRO and has approximately 70.4 million common shares issued and outstanding, and approximately 91.9 million shares on a fully diluted basis.

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