Mr. Dennis Hancock reports

MOUNTAIN VALLEY MD PROVIDES BUSINESS UPDATE, APPOINTS NEW chief financial officer

Mountain Valley MD Holdings Inc. has provided a broad business update of its progress across its three core lines of business:

• Nutraceuticals -- novel innovations through the company's Quicksome technology that are designed to improve the administration and efficacy of nutraceutical health and wellness products;
• Agriculture -- the company's licensed Agrarius agricultural plant signalling technology that is designed to organically drive increases in crop yields and overall plant health;
• Husbandry animals/aquatic species -- the application of solubilized drugs through the company's Quicksol technology that is designed to positively impact the health of husbandry animals and aquatic species.

"We believe are at a very exciting time in our company's progress. The MVMD team and our extensive network of partners has made significant progress advancing our commercialization priorities," stated Dennis Hancock, president and chief executive officer of Mountain Valley MD. "We are confident that the tangible value proposition of our technologies is being very well received and that we have successfully laid the groundwork needed to support our long-term commercial viability, while supporting our desire to make a global impact in line with our vision of More Life."

Business updates

Nutraceuticals

Quicksome powered eons deeper sleep product launched

Mountain Valley's contracted manufacturing partner in the United States has completed the set-up and testing of equipment to enable the proprietary production of nutraceutical applications for Mountain Valley's Quicksome technology, including sublingual rapid dissolve tablets and powders. The GMP (good manufacturing practice) manufacturing and initial consumer order fulfilment for the first product to embody the Quicksome technology was completed in February, 2024, with the Eons Deeper Sleep rapid dissolve mushroom tablet product. The Eons product was produced by Circadian Wellness Corp. (CW) under licence from MVDM and is available to purchase directly from the CW's website.

The company has demonstrated through third party and in-house studies that its patented liposomal Quicksome technology uses proprietary formulations and stabilizing agents to encapsulate active ingredients, enabling a more optimized delivery into the body through sublingual applications when compared with orally consumed pills. When the Quicksome technology is consumed sublingually, the company believes there is an increase in the overall efficacy of the active ingredients, a reduction in variability of impact and promotes the ability to use less actives versus competitive products.

The company's formulators completed and transferred three proprietary formulations for initial product creations for CW's Eons brand, targeting the launch of Deeper Sleep, and expanded to energy and immunity enhancements under a fees-for-service agreement. The launch of CW's mushroom-infused sublingual sleep product marked the beginning of a series of consumer products that Eons will have the option to launch in the future under its licence and as it determines. Although outside of Mountain Valley's control, it is anticipated that a variety of consumer products that embody Mountain Valley's technology under CW's Eons brand will be available for sale in the United States ongoing through the 2024 calendar year and beyond.

To date, the company has worked on a range of formulations for Quicksome-powered product applications, including sleep, energy, appetite suppressant, cognition, immunity, calm and pain relief. Completed formulations and GMP quality product samples under the company's Mountains of brand now enable the company to pursue business development opportunities with its lead manufacturer, which has a broad list of clientele who currently purchase white label and proprietary products.

In 2023, the company filed for, and was granted, trademark protection with the United States Patent and Trademark Office for its proprietary Mountains of brand in the effort to secure the option to create unlimited future product applications. The company believes this will be valuable in its business development efforts and broad growth plans for its nutraceutical line of business.

Agriculture

Agrarius trial results exceeding management's expectations

Mountain Valley is a licensed reseller of Agrarius, a certified organic agricultural product, that when administered, is designed to activate a plants' defence mechanisms at the cellular level, without the actual stress factor. The intended effect of Agrarius is that treated plants grow deeper roots and open up their foliage to optimize the effect of photosynthesis, thus increasing growth hormones, plant efficiency for water use and nutrients, decreasing the requirement of fertilizer where used and increasing overall resistance to diseases and stressed climate conditions.

Agrarius has been tested across numerous major agricultural crops and has demonstrated its ability to naturally increase crop yields from approximately 10 to 50 per cent or more depending on crop type, reduce fertilizer usage where used by more than 30 per cent, and increase general resilience to pests and climate change forces such as drought.

Mountain Valley believes Agrarius presents a significant opportunity to support its growth objectives and is currently conducting business development activity in Mexico, Central America, South America and the United States. The focus of the current business development activities has been to target large-scale farming operations to induce trial activity on crops that would demonstrate the benefit to improving crop yields and overall plant health.

There are currently more than 30 active crop trials being conducted by targeted large-scale farming operations, which would represent a potential multimillion-dollar field coverage pipeline if the clients were to purchase Agrarius product from the company after successful trial completion and related government registrations that enable the sale of the product. It is management's view that the business development effort has been well received by the initial large-scale farming operations the company has been targeting and working with for trialing.

Completed trials that have been documented through Mountain Valley farming prospects and Mountain Valley directly managed trials over the last year have exceeded management's expectations. Beyond validating the anticipated yield improvements, the company has seen the potential for unique pest and disease management applications as recently demonstrated in a trial conducted by a Valencia citrus producer and verified by an independent laboratory that worked directly with the farm.

In what the company believes could be a landmark trial, Agrarius has shown potentially promising results in mitigating Huanglongbing (HLB), a globally destructive citrus greening disease that is currently declared as incurable. Treated citrus trees exhibited notable recovery signs, including the emergence of healthy green foliage, abundant and large white flowers, and the production of spot-free, juicy Valencia oranges, with an anticipated overall yield increase of approximately 10 per cent. The Agrarius test plot improved visual health indicators and has also demonstrated an enhanced distribution of both macronutrients and micronutrients within the plant system. The company believes these findings to be materially significant and highlight Agrarius as a potential organic solution for citrus producers facing the impacts of HLB, with potentially the first viable method for revitalizing affected orchards and introducing sustainable disease management practices.

The company anticipates revenue from Agrarius sales activity in the 2024 calendar year based on the anticipated timing for registration approvals and logic of the crop trialing cycle during which farming organizations aim to personally validate on their respective farms the anticipated positive impact on crop yields and/or fertilizer reduction. The company had anticipated sales activity to occur by the end of the calendar year 2023, however, the company is subject to the timelines associated with the registration process in each jurisdiction which are in part outside of the company's control. Management does not anticipate any challenges to obtaining registrations at this time in its initial focus markets of Brazil, Panama, Colombia, Uruguay, Costa Rica and Mexico.

Mountain Valley has hired key team members in South America who are familiar with local language, customs and trade requirements to support its agriculture line of business in Mexico, Central America and South America (LATAM), including in the areas of finance, operations, business development and agronomy.

The company plans to operate its LATAM sales operations through subsidiaries, including in Panama, to facilitate the registration and distribution of the Agrarius product for sale in various jurisdictions. The company has also contracted the services of a Panamanian distribution company, the location providing for certain tax advantages and has arranged the delivery of Agrarius product to support sales fulfilment in LATAM once registrations are completed in various jurisdictions over the coming months. The initial business development strategy of the company in LATAM focused on Colombia, Brazil, Uruguay, Panama and Mexico, but has been expanding to meet the demand from interested parties, including to Costa Rica, Argentina and Bolivia.

The company believes that it has interested customers who have trialed the product and would be likely to proceed with product orders once registrations allow Agrarius to be broadly applied on their crops. Agrarius is currently registered for sale in 41 states in the U.S., with additional state approvals anticipated through the 2024 calendar year. As the LATAM registration process has been taking longer than anticipated by the company, the company has started a more concentrated effort on targeted sales activities in the U.S. in states in which registrations have already been obtained, including an immediate focus on citrus growers.

Husbandry animals/aquatic species

Plans to introduce Soluvec 1 per cent coated fish feed in Bangladesh by May, 2024

The company has applied its Quicksol solubilization technology to the drug Ivermectin to create its Soluvec 1 per cent product formulation, which was designed to provide a safer and more effective solution that can be administered broadly across the husbandry animal and aquatic species marketplace.

The company previously disclosed positive outcomes of multiple pharmacokinetic trials that were conducted under the supervision of the People's Republic of Bangladesh's Ministry of Fisheries and Livestock for an injectable Soluvec 1 per cent solubilized Ivermectin technology and Soluvec 1 per cent coated standard fish feed across farmed fish species. The trials indicated that Soluvec 1 per cent is 2,500 times more soluble than standard Ivermectin, enhancing its efficacy and its ability to be absorbed. In aquaculture, Soluvec 1 per cent treated feed led to enhanced growth and survivability outcomes in species like Indian catfish and tilapia, indicating potentially substantial benefits for biomass production.

The company entered a license agreement with a privately held Ontario corporation for its Soluvec 1 per cent animal husbandry applications for the territory of the People's Republic of Bangladesh. In exchange for a royalty percentage against net sales, the agreement provides the licensee with the exclusive rights, within Bangladesh, to work through its partners inside the territory to co-ordinate Soluvec 1 per cent manufacturing and distribution of related Soluvec 1 per cent products, both in injectable and food coating applications.

Management has been advised by the licensee that the licensee has received necessary government approvals and completed the manufacturing agreements that enable the licensee to commence manufacturing of the Soluvec 1 per cent coated standard fish feed for farmed fish species within Bangladesh. The licensee has confirmed it is working with its manufacturing partner to commence production and finalizing plans to introduce Soluvec 1 per cent coated standard fish feed in Bangladesh by May, 2024.

The company continues to evaluate the opportunity to license its Soluvec 1 per cent product in territories outside of Bangladesh. Management's belief is that the government product approval from Bangladesh granted to the licensee for farmed fisheries enables the company to look at strategic business development initiatives outside of Bangladesh in line with anticipated product production in Bangladesh in the 2024 calendar year. The company believes that sending commercially manufactured samples of the Soluvec 1 per cent product will reduce costs and enable several independent evaluation trials to happen simultaneously with potential key partners in a variety of territories.

To safeguard its intellectual property and the company's licensing royalty model, the company has initially filed for Quicksol patent protection in key markets it has deemed strategically important at this time for expansion outside of Bangladesh. Mountain Valley has filed for Soluvec protection in 12 additional markets outside of the united States, including Canada, China, India, Mexico, Sri Lanka, Thailand, Philippines, Malaysia, Brazil, Peru, Argentina and Chile.

Appointment of chief financial officer

The company is pleased to announce the appointment of Matt Anderson, CPA, CA, to the role of chief financial officer, replacing Yong Yao effective immediately. Mr. Anderson is a seasoned executive, who brings 20 years of financial experience to Mountain Valley's team. Mr. Anderson brings a wealth of expertise in public company financial reporting, mergers and acquisitions, and complex financial instruments. His background includes public market engagements for CSE- and TSX Venture Exchange-listed companies, working with Latin American subsidiaries and managing audit engagements with firms such as PricewaterhouseCoopers LLC, Mountain Valley's current auditor.

Mr. Anderson holds a bachelor of commerce from McGill University in Montreal and has served as the managing director of Malaspina Consultants since 2018, where he leads a team of skilled accountants along with his business partners, who provide accounting services to a broad clientele. Since July, 2009, his tenure at Malaspina Consultants Inc. has been marked by chief financial officer and accounting roles for various public and private companies across multiple industries. Previously, Mr. Anderson worked with a large auditing firm.

"I am very pleased to welcome Matt Anderson to the MVMD team to support this important growth phase of our company," said Dennis Hancock, president and chief executive officer of Mountain Valley. "Mr. Anderson brings extensive public markets experience and has a deep network of financial experts that will be valuable as we scale up our business."

About Mountain Valley MD Holdings Inc.

Mountain Valley MD is building a world-class organization centred around the implementation, licensing and reselling of key technologies and formulations.

We seek Safe Harbor.