Mr. Mehdi Moghareh reports

OCAL FINANCIAL REPORTS A HISTORICAL REPOSSESSION RATE UNDER ONE PERCENT, HIGHLIGHTING THE STRENGTH OF ITS ASSET-LIGHT AUTOMOTIVE FINANCING PLATFORM, AND ANNOUNCES MEETING DATE FOR ITS 2026 ANNUAL GENERAL AND SPECIAL MEETING

Fewer than 1 per cent of the vehicle loans arranged through Ocal Financial Inc.'s platform since 2021 have resulted in repossession, according to management information for the period from the company's first financed transaction in 2021 to Sept. 30, 2026, based on lender reporting.

The company believes this historical performance reflects the effectiveness of its credit verification procedures, lender relationships, disciplined financing practices and customer-first approach that prioritizes financial eligibility and affordability before vehicle selection.

With more than 1,500 cumulative financed vehicle transactions and audited revenue of $6.48-million in the fiscal year ended Aug. 31, 2025, Ocal has an established commercial operating history while maintaining an asset-light structure that eliminates the need for standing vehicle inventory. A financed vehicle transaction is a retail vehicle sale arranged through Ocal's platform for which the customer's financing contract was financed by a lender, and the vehicle was delivered to the customer, and the cumulative count is drawn from the company's transaction records and lender reporting since its first financed transaction in 2021 and is not a measure presented in its financial statements.

Operating highlights

Disciplined transaction quality and a scalable business model: Ocal's process begins with financing approval and ends with the vehicle, reversing the conventional dealership sequence. Through its approval-first approach, Ocal verifies each customer's identity, income, creditworthiness and financing eligibility, explains the approval in plain terms, and only then sources a vehicle that fits the approved terms. This approach is designed to improve transaction quality, reduce financing uncertainty and strengthen lender confidence.

According to management, approximately 99 per cent of signed customer contracts were financed by lenders over the period from the company's first funded transaction in 2021 to Sept. 30, 2026, reflecting the company's ability to convert approved transactions into completed vehicle sales. Unlike a lender, Ocal does not retain consumer loans on its balance sheet or assume the associated credit-default risk.

Commercial traction and operating efficiency: Ocal's revenue model combines vehicle sales with financing-related compensation and protection products, creating multiple sources of revenue on every transaction. Management reports that approximately 98 per cent of financed transactions include a warranty or other protection product, and that repeat and referral customers accounted for approximately 17.6 per cent of financed transactions over the previously disclosed trailing 12-month period. Every vehicle Ocal sells is under five years old, inspected and reconditioned before delivery, and carries a two-year, unlimited-kilometre warranty.

Technology-enabled compliance and scalable infrastructure: Ocal operates through a centralized digital workflow that integrates customer verification, financing approvals, vehicle sourcing through Openlane Canada after approval, and digital contracting and delivery to the customer's door, with every disclosure, signature and transaction recorded. The company is licensed in British Columbia and Alberta, and intends to apply the same infrastructure as it expands into additional Canadian markets, subject to applicable licensing and regulatory approvals.

Management commentary

"Maintaining a repossession rate below 1 per cent over our operating history reflects the discipline behind every transaction and the trust we work to build with our customers," said Mehdi Moghareh, chief executive officer of Ocal Financial.

"Many customers come to us facing challenges with financing approval, finding the right vehicle, accessing a dealership or simply understanding their financing options. We solve the problem first, and the vehicle follows. Our approval-first model builds trust with customers and lenders while providing a scalable foundation for long-term growth and profitability."

Operating performance

Transaction economics and path to profitability

Ocal's asset-light business model is designed to generate multiple revenue streams from each financed vehicle transaction while maintaining a largely fixed operating cost structure. In the fiscal year ended Aug. 31, 2025, the company's audited revenue increased 18.8 per cent to $6,480,254, gross profit increased 32.7 per cent to $810,751 or 12.5 percent of revenue (fiscal 2024: $610,787, or 11.2 per cent), and operating expenses decreased 9.8 per cent to $1,114,195, narrowing the operating loss to $303,444 from $624,056. Finance, insurance and other products contributed $701,727 of fiscal 2025 gross profit.

The company's operating costs are largely fixed. As transaction volumes increase, Ocal has the potential to spread its fixed costs across more vehicle sales, improving operating efficiency and advancing toward profitability. Beginning with its Nov. 10, 2026, news release, Ocal intends to report operating metrics for each closed month, using the same definitions each time.

The fiscal 2025 and fiscal 2024 figures above are taken from the company's audited financial statements for the year ended Aug. 31, 2025, filed on SEDAR+.

2026 annual general and special meeting of shareholders

The company also announces that it will hold its annual general and special meeting of shareholders on Dec. 10, 2026, at 9 a.m. Vancouver time, at Suite 1600, 925 West Georgia St., Vancouver, B.C. The board of directors of the company has fixed the close of business on Nov. 2, 2026, as the record date for the meeting. At the meeting, shareholders will be asked to: (i) set the number of directors of the company at four; (ii) elect directors of the company for the ensuing year; and (iii) approve the adoption of a new omnibus equity incentive plan of the company to replace the company's existing stock option plan.

In connection with the completion of the company's qualifying transaction on July 15, 2026, Crowe MacKay LLP resigned as auditor of the company, and DMCL LLP was appointed as auditor of the company. Accordingly, at the meeting, shareholders will also be asked to reappoint DMCL LLP as auditor of the company until the next annual meeting of the company and authorize the directors to fix its remuneration. In the opinion of the company, no reportable event (as such term is defined in Section 4.11(1) of National Instrument 51-102 (Continuous Disclosure Obligations)) has occurred. The company is relying on Section 4.11(3)(a) of NI 51-102 for an exemption from the change of auditor requirements of Section 4.11 of NI 51-102.

Further details concerning the meeting will be set out in the company's management information circular, which will be sent to shareholders and made available under the company's profile on SEDAR+ in advance of the meeting.

About Ocal Financial Inc.

Ocal Financial is a technology-enabled automotive financing and purchasing platform transforming how Canadians finance and purchase vehicles. Built around an approval-first approach, Ocal connects customers with suitable financing options before sourcing a vehicle that meets their needs and budget. Its integrated platform brings together credit assessment and financial guidance, lender matching, vehicle sourcing, digital transactions, and home delivery anywhere in the provinces it serves, eliminating the need to visit a traditional dealership. Ocal holds no standing vehicle inventory. It sources each vehicle only after a customer is approved, through Openlane Canada, its auction and sourcing channel. Ocal earns revenue from vehicle sales and related finance and protection products, and does not hold consumer loans or assume credit-default risk. Licensed in British Columbia and Alberta, Ocal generated revenue of $6.48-million (audited) in the fiscal year ended Aug. 31, 2025, and has completed more than 1,500 financed vehicle transactions to date.

We seek Safe Harbor.