Ms. Erica Fattore reports

PESORAMA REPORTS Q2 2024 FINANCIAL RESULTS

Pesorama Inc. has released its financial results for the second quarter ended July 31, 2023.

"As the only true dollar store company in Mexico, we are constantly innovating and pushing the boundaries of what is possible," said Erica Fattore, president and chief executive officer of Pesorama. "Creating a new market space requires strategic thinking, operational excellence and execution, which is reflected in this quarter's results. During Q2 2023, we saw a significant increase in store traffic of 18.3 per cent, and our average ticket grew by 4.8 per cent over Q2 2022. We attribute this to the success of our unique merchandising strategies, product assortment and overall customer experience. Our JOi Dollar Plus stores are increasing in popularity as we continue to expand our footprint and raise the bar in our market. We believe we have the winning strategy, and we are meeting the needs of the cost-conscious shopper in an underserved market that will ultimately drive long-term value for our shareholders. We have big ambitions and will continue to think outside the box to set ourselves apart."

Key financial highlights: Q2 2024 versus Q2 2023:

• Multiprice points continue to lead to increased product assortment and increased growth of new product categories across all departments.
• Store profits increased by 106 per cent to $58,664 for the six months ended July 31, 2023, an increase of $990,303 from the six months ended July 31, 2022.
• Total sales increased by 70 per cent to $8,933,940 due to organic growth of previously opened stores, as well as sales from new stores, which opened in April, 2022, May, 2022, and December, 2022.
• Gross profits increased by $1,666,231 to $2,477,087, primarily driven by an increase in revenue of 70 per cent compared with an increase in cost of sales of only 45 per cent.
• Product gross margins increased by 2.1 per cent from $2,034,339 or 38.7 per cent to $3,644,695 or 40.8 per cent due primarily to an increase in revenue for higher prices items resulting from the introduction of the multiprice strategy and assortment mix.

Other performance metrics: Q2 2024 versus Q2 2023:

• Sales units increased by 27 per cent as a result of increase in demand, increased product assortment and mix.
• Same-store sales increased by 35 per cent in Q2 2023 compared with Q2 2022.
• Average ticket increased by 4.8 per cent.

This earnings news release should be read in conjunction with the company's condensed consolidated interim financial statements for the three-month period ended April 30, 2023, which can be found on Pesorama's issuer profile on SEDAR+.

In addition, further to its press release of July 4, 2023, the company has settled an aggregate of $546,191 of indebtedness owed to certain non-arm's-length creditors of the company through the issuance of an aggregate of 2,482,684 common shares of the company at a deemed price of 22 cents per common share. The debt settlement received approval from disinterested shareholders at its annual and special shareholder meeting held on Aug. 8, 2023. All securities issued in connection with the debt settlement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

The debt settlement constitutes a related-party transaction as defined in Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) as insiders of the company were issued an aggregate of 2,482,684 common shares. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the company is not listed on a specified market and the fair market value of the common shares being issued to insiders in connection with the debt settlement does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. A material change report was not filed fewer than 21 days before the closing date of the debt settlement. This shorter period was reasonable and necessary in the circumstances, as it was necessary for the company to obtain disinterested shareholder approval for the debt settlement and the debt settlement will improve the financial position of the company upon closing.

About Pesorama Inc.

Pesorama, operating under the JOi Canadian stores brand, is a Mexican value dollar store retailer. Pesorama launched operations in 2019 in Mexico City and the surrounding areas, targeting high-density, high-traffic locations. Pesorama's 21 stores offer consistent merchandise offerings which include items in the following categories: household goods, pet supplies, seasonal products, party supplies, health and beauty, snack food items, confectionery, and more.

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