Mr. Pat McCutcheon reports

POWER LEAVES PROVIDES COMMERCIAL UPDATE; CAPACITY AND QUALITY SYSTEMS EXPANSION UNDERWAY

Power Leaves Holdings Corp.'s active commercial pipeline has grown to more than 100 companies across the global food, beverage and ingredient sectors, and proceeds from its recent public listing are being deployed into the production capacity and quality system work required to convert that pipeline into commercial orders. Both work streams are already under way.

For more than a century, decocainized coca extract -- the namesake flavour ingredient in Coca-Cola -- has been controlled by a single company operating out of a single permitted facility. Formulators and global consumer packaged goods brands seeking access to this high-value natural ingredient have had no alternative source.

Over a four-year development period, Power Leaves established a second legal, fully integrated coca extract supply chain outside of that legacy monopoly, securing exclusive long-term raw material access and developing novel extraction processes to serve a multitrillion-dollar global addressable market across mainstream food, beverage, active lifestyle and alcohol categories.

Commercial pipeline: built over two years of counterparty diligence

The company's active commercial pipeline comprises more than 100 companies.

Route to market                             In the pipeline                    

Tier 1 manufacturers, ingredient houses     Seven in advanced contract discussions 
and CPG brands                              
Small and medium enterprises                95-plus across the sales cycle         
Distribution                                One co-packer and grocery distributor
Total                                       100-plus companies                     

Over the past two years, Power Leaves has been put through extensive counterparty diligence by major industry players -- diligence that has independently validated both the quality of its products and the integrity of its legal supply chain:

• Tier 1 U.S. flavour house: completed a two-year diligence process, investing hundreds of thousands of dollars to validate and integrate Power Leaves' ingredients into its global catalogue;
• Tier 1 U.S. co-packer: completed a two-year diligence evaluation, culminating in multiple approved product formulations validated through client focus groups;
• Legal and regulatory clearance: four additional Tier 1 global entities have completed full legal and regulatory diligence on the company's fully integrated Colombian supply chain;
• Brand approvals: major North American CPG brands have approved target formulations, laying the groundwork for commercial integration.

Demand is not the constraint -- capacity is

Demand for Power Leaves' decocainized coca extract and coca essence is not the company's operational constraint today. Conversion of this pipeline has been gated strictly by internal processing capacity and by the completion of customer-required quality system audits. Until the listing, the company was capital constrained and could not finance the throughput and certification work its Tier 1 counterparties require before placing volume orders.

"Four years of development and two years of customer diligence have put us in an excellent position: more than a hundred companies want an ingredient that has only ever had one source," said Pat McCutcheon, chief executive officer of Power Leaves. "Demand has never been our problem. Capacity has. The listing gave us the capital to solve that, and we did not wait -- expansion and quality systems work are already in motion. Every additional litre we bring on-line is capacity we can sell into the market."

Capital deployed; expansion in motion

With proceeds from its recent public listing secured, the company has initiated the expansion work required to remove the bottleneck:

• Production scaling: Capital is being deployed to scale annual processing capacity from its current baseline to 360,000 litres by year-end 2026, targeting two million litres by year-end 2027.
• Quality systems and audit readiness: Financing is driving final implementation of global food safety certifications, automated quality controls and Tier 1 customer audit compliance across the company's Colombian facilities.
• Manufacturing partnerships to accelerate market access: Power Leaves is working to establish a manufacturing partnership with a leading contract manufacturing organization in Colombia, providing access to already-certified capacity to support the ramp above and accelerate opening both domestic and international sales channels.

Converting the pipeline

With expanded capacity and Tier 1 quality certifications coming on-line, the company expects to receive initial commercial orders from major pipeline counterparties in the coming weeks, followed by scaled, larger-volume purchase commitments as additional capacity is commissioned.

About Power Leaves Holdings Corp.

The company is breaking the monopoly on the supply of coca leaf extract and ushering in a new age of coca. Through an exclusive licence agreement with the Nasa indigenous community in Colombia, the company has developed the first ever legal Colombian supply chain for decocainized coca extract to supply the global food and beverage markets. Its infrastructure comprises three purpose-built facilities in the Neiva region of Colombia -- a manufacturing campus for extraction and decocainization, an Invima-registered research and development facility, and a Food and Drug Administration-registered formulation and packaging facility. The company is commercializing two proprietary products, coca extract and coca essence, as novel, all natural ingredients for the global food and beverage market.

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