Mr. Rich Wheeless reports

PARCELPAL PROVIDES MID-YEAR CORPORATE UPDATE, INCLUDING RECORD Q1 REVENUES AND SECOND HALF 2023 GUIDANCE

Parcelpal Logistics Inc. has provided shareholders with the following midyear corporate update regarding recent significant company initiatives, with more updates to follow in the coming days and weeks.

The company has continued to make major improvements in regard to its operational performance as seen in its record Q1 2023 financials results highlighted by revenue of $2,965,043. The company has sustained year-over-year revenue growth and, most importantly, 97 per cent of its reported revenues are now recurring.

Over the past six months, the company has continued to take a focused and disciplined approach in a volatile economy and market. It enabled the company to not only continue to grow during an uncertain environment, but it has in fact led it to achieving record revenues in Q1 2023 and steady gross margins. Given some of the recent changes, Parcelpal believed this has placed the company in the strongest position for future growth and diversification that will spur higher revenues, margins and increased operating performance.

In the first half of 2023, the company has increased its existing business with its largest clients. It sees this continuing throughout the rest of the year as well as picking up some new large clients. It is important to note that over 60 per cent of the company's revenue has historically occurred in the second half of its fiscal year. The company also surpassed the 23 million delivery mark since inception, with the large majority of these deliveries coming in the past two years.

Given the increase in the company's customer base and strong continued growth in e-commerce, it expects its growth to continue at a solid pace, driven by organic growth throughout the rest of 2023, as demonstrated by Parcelpal's recently reported news about having its highest Q1 revenue in the history of the company.

The company is actively working on expanding operations into Asia, beginning in Japan, which is a large and active consumer products market that lends itself to the company's industry. Additionally, Parcelpal believes the implementation of automation and various digital and mobile strategies will significantly increase its operational efficiencies along with further increasing its margins. The company believes that its new tech offerings will greatly support its efforts to attain a full year of operating profitability and becoming cash flow positive on an annual basis.

Chief executive officer Rich Wheeless commented: "We have continued to make amazing strides within the company despite the major headwinds in the overall small-cap and microcap markets. I am very proud to say that Parcelpal is not only well positioned to have its strongest second half of the year ever, but I see the trend continuing into next year as well. As the overall global markets turn around we would be able to further capitalize on the additional growth opportunities that will be presented to us."

Solid Q1 financial results and recurring revenue instill continued confidence in 2023 second half guidance

Parcelpal reported record Q1 2023 revenues of $2,965,043, representing an 11-per-cent year-over-year increase, with a major focus on recurring revenue growth. This record revenue is attributable to continued organic growth.

As such, the company is confidently planning an even more aggressive growth plan for the remainder of the year. With increasing revenues and continuous efforts to scale efficiently, Parcelpal continues to progress toward one of its key goals of having cash flow positive operations globally in 2024.

About Parcelpal Logistics Inc.

Parcelpal is a Vancouver-based company that specializes in last-mile delivery service and logistics solutions. It is a customer-driven, courier and logistics company connecting people and businesses through its network of couriers in major Canadian cities, including Vancouver, Calgary and Toronto, as well as in the western region of the United States. Some of Parcelpal's verticals include pharmacy and health, meal kit deliveries, retail, groceries, and more.

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