Mr. Billy Hogan reports

NEPRA FOODS ENTERS LOI WITH KUUK WATER TO SUPPORT SUSTAINABLE BEVERAGE EXPANSION, HOSPITALITY DISTRIBUTION AND E-COMMERCE OPERATIONS

Nepra Foods Inc. has entered into a non-binding letter of intent (LOI) with Kuuk Water, an indigenous-owned (Inupiaq Alaska Native) premium glacial and artesian water company. The LOI was completed on May 13, 2026.

Under the proposed non-exclusive distribution and e-commerce management agreement, Nepra would serve as a North American distribution, warehousing, fulfilment, and e-commerce partner for Kuuk's aluminum bottled and canned water products. The proposed collaboration would be expected to integrate, if completed, with Nepra's previously announced pending acquisition of the Artesian Fusion bottling and co-packing facility in Lewiston, Idaho.

Nepra believes the proposed partnership aligns with the company's broader vertical integration strategy by supporting the expansion of beverage manufacturing, fulfilment, logistics and distribution capabilities designed to serve retail, hospitality and institutional channels.

Kuuk has demonstrated early commercial traction in Alaska through statewide placement in Fred Meyer stores, multiple Walmart locations and strategic indigenous partnership initiatives. According to Kuuk, the company sold approximately 600,000 single-serve aluminum cans during its first full year of operations in Alaska and is currently pursuing expansion throughout the Pacific Northwest. This includes planned growth across Oregon, Washington, Idaho and Montana; supported by existing relationships with Columbia Distributing, regional indigenous partners and institutional channels.

Kuuk's business model includes a focus on sustainability and community initiatives. The company's sourcing and packaging model aligns with increasing regulatory and consumer demand for sustainable beverage alternatives across North America. Kuuk also supports community initiatives through Kuugaq, its affiliated nonprofit organization, focused on water accessibility, sanitation, wellness and indigenous community support programs.

Billy Hogan, chief executive officer of Nepra Foods, stated:

"We believe Kuuk represents the type of mission-aligned premium brand that fits naturally within the infrastructure platform Nepra is building. Their demonstrated retail traction, hospitality expansion strategy, sustainability-focused positioning and community initiatives align closely with the long-term direction Nepra is pursuing."

Joseph Warren, president and founder of Kuuk Water, commented:

"Expanding into the Pacific Northwest is something we've been working toward with real intention. Nepra shares our belief that business can be a force for good in the communities we serve, and that kind of alignment doesn't come along every day. We're thrilled to partner with Nepra and extend our reach across the Western United States. Doing good things with good people is something we say internally every day -- and we truly believe we've found those people in Nepra."

Key highlights of the proposed partnership

• Proposed non-exclusive North American distribution and fulfilment partnership for Kuuk products;
• Nepra expected to manage warehousing, logistics coordination and direct-to-consumer e-commerce operations;
• Potential integration with Nepra's pending Lewiston, Idaho, bottling and co-packing acquisition, if completed;
• Kuuk achieved approximately 600,000 units sold during its first full year in Alaska;
• Existing Kuuk retail placements include Fred Meyer and Walmart locations;
• Expansion initiatives include hospitality, tribal gaming, casino resort, tourism and institutional distribution opportunities across the Pacific Northwest.

The LOI remains non-binding and is subject to the negotiation and execution of definitive agreements, completion of due diligence, required third party approvals, and other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed partnership will be completed on the terms currently contemplated, or at all.

About Nepra Foods Inc.

Nepra Foods is a vertically integrated food and beverage company focused on specialty ingredients, functional nutrition and scalable wellness infrastructure. Through a portfolio of proprietary products, manufacturing capabilities and strategic partnerships, the company develops and supports consumer brands across multiple health and wellness categories. Nepra is pursuing a vertical integration strategy designed to expand operational capabilities, diversify revenue streams and support long-term growth.

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