Mr. Peter Shippen reports

PARAGON ADVANCED LABS PROVIDES CORPORATE UPDATE

Paragon Advanced Labs Inc. has filed on SEDAR+ its interim financial statements and management discussion and analysis for the three months ended March 31, 2026.

Developments in the quarter

The momentum established in the first quarter has continued into the second quarter, with several operational, strategic and financial developments completed since March 31, 2026:

• Operational expansion and capability enhancement:
  • Sample preparation capacity has expanded with the opening of the company's Thunder Bay facility in April, 2026, which is successfully ramping up its throughput with additional staffing and equipment: continuing investments in sample prep in Timmins and Sparks are expected to drive further throughput improvements in the near term;
  • Approaching completion of a significant geochemical capacity expansion at the Sparks, Nev., laboratory, announced in April, 2026, which is expected to more than double geochemical analysis throughput: the expansion includes laboratory reconfiguration to optimize analytical workflows and is being completed alongside continued enhancements to the company's quality assurance and quality control protocols, supporting consistent, high-quality results as throughput scales;
  • Engagement of Koenig Scientific LLC announced in May, 2026, to support the Sparks geochemistry expansion, optimize analytical workflows, and ensure continual improvement of quality assurance/quality control reference materials and pro-active ISO/IEC 17025 performance;
• Strengthened liquidity position:
  • On May 6, 2026, the company completed a private transaction with a third party involving the divestiture of the equity position held on its balance sheet for net proceeds of approximately $4.3-million (U.S.); the proceeds are intended to support continuing operating requirements and working capital needs.

"Q1 was a quarter of continued investment and growth," said Peter Shippen, chief executive officer of Paragon. "Our results demonstrate meaningful progress, and we expect this continued investment in analytical capacity and talent to deliver ongoing benefits in both the near and longer term."

About Paragon Advanced Labs Inc.

Paragon Advanced Labs provides innovative analytical technologies to the global mining industry. By embracing new technology, the company is addressing critical capacity bottlenecks in mineral assaying through the deployment of PhotonAssay technology and complementary analytical solutions. The company delivers faster, more accurate and cost-effective mineral analysis for mining operators around the world.

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