Mr. Rich Wheeless reports

PARCELPAL LOGISTICS INC. REPORTS RECORD SECOND QUARTER 2023 RESULTS HIGHLIGHTED BY ALL-TIME RECORD MARGINS, A NEAR COMPANY-WIDE BREAKEVEN BOTTOM LINE AND SIGNIFICANT REVENUE GROWTH

Parcelpal Logistics Inc. has released record Q2 2023 financial results highlighted by revenue growth of 17 per cent (to approximately $2.9-million), record gross margins of 27 per cent and a 92-per-cent decrease in net loss (from $1.4-million in Q2 2022 to $110,000 in Q2 2023). It is important to note that this was the company's largest Q2 of gross revenue and highest ever gross margins, and the company's fourth-largest quarter of gross revenues in the history of the company, with the largest being Q4 2022 (which was $3.4-million). Additionally, it is important to remember: the back half of the year is when the company has traditionally generated the lion's share of its revenue, and the company anticipates this trend to continue from years past. It is very possible that with additional operational efficiencies that the company has been implementing, one or both of the two final quarters of 2023 will be fully profitable. Simply, this is substantial and very positive operational progress.

Overview

In Q2 2023, the company achieved its fourth-largest quarter of revenue ever, which was driven by revenue growth of 17 per cent to approximately $2.9-million (up from $2.5-million in Q2 2022). The company's gross margins for Q2 were a record 26.9 per cent (compared with 23.4 per cent in Q2 2022). Additionally, the company had a net loss of only $110,379 compared with Q2 2022 which was $1,438,648 (a 92-per-cent decrease in net loss). It is important to note that approximately $300,000 of non-cash related items, such as amortization and one-time share issuances drove the small net loss in Q2 2023.

The company is very pleased with the positive trends in its business operations in the United States, which became profitable beginning in June, 2023, and which the company believes will continue to be profitable moving forward.

The company's revenue growth and continued record margins are, in large measure, driven by its expansion into the United States, which is the world's largest consumer market, combined with improved operating efficiencies.

Parcelpal's chief executive officer, Rich Wheeless, stated: "The business side of the company has never been in a better position than it has been under my 3.5-year tenure, despite what has been a volatile economy. We hit another major milestone with the United States side being fully net profitable for the full second quarter across all divisions for the first time in the history of the company, which we believe will continue moving forward. I also note that we, as a publicly traded company, have been operating in an extremely challenging stock market for small and microcap stocks. These broader market conditions have negatively affected our stock price, and the intrinsic market value of our company has not been recognized. We fully intend to bring this positive growth and expansion story more fully to the market to attain greater shareholder value. Despite these headwinds, we have expanded and achieved record growth and I am extremely excited about the additional opportunities that are in front of us, which I believe will allow us to continually expand the business on a profitable basis, and I look forward to getting our Canadian operations fully profitable in the near term."

Q2 2023 financial highlights:

June 30, 2023, compared with June 30, 2022 -- financial highlights:

• Record revenue in Q2 2023 and growth of 17 per cent to $2,919,785 (up from $2,505,663 in Q2 2022). This represents the company's fourth largest revenue quarter since inception (Q4 2022 of $3.4-million was the largest revenue quarter ever).
• Record gross margins in Q2 2023 of 26.9 per cent (up from 23.4 per cent in Q2 2022).
• Management and director fees decreased to $161,997 (Q2 2022 -- $321,849) due to lower fees to directors and officers issued in Q2 2022.
• Marketing and promotion decreased to $nil in Q2 2023 (Q2 2022 -- $117,497) as the company focused on increasing operational efficiencies and reducing corporate spending.
• Office and miscellaneous expenses decreased to $219,154 (Q2 2022 -- $307,628) as the company undertook additional cost cutting measures in an effort to conserve cash and focus on operational growth.
• Cash of $219,900 at June 30, 2023, compared with $76,661 at Dec. 31, 2022, and vehicles and right-of-use assets of $413,109 compared with $507,669 at Dec. 31, 2022.
• During the quarter ended June 30, 2023, the company's United States operations turned net positive, and the company's overall (including Canadian operations) net loss was only $110,379 (compared with $1,438,648 in Q2 2022).
• Net cash flows used in operating activities decreased to $46,000 for the six months ended June 30, 2023, from $678,000 for the six months ended June 30, 2022.

Subsequent to the period ended June 30, 2023, a few notable events occurred, including:

• On July 17, 2023, the company announced that beginning in June, 2023, its U.S. operations were fully profitable for the first time ever, and the company anticipates that to continue moving forward.
• On July 26, 2023, the company announced that it added eight late model (newer and mixed size, including larger) vehicles to its FedEx fleet to address its increased business demands.

Outlook

The company's strategic priorities for the remainder of fiscal 2023 include:

• Continued improvement in operating performance, and continued development and reintroduction of the company's new and improved technology platform;
• Building an exceptional and world-class brand with a focus on signing additional quality partners;
• Using data, technology and inbound selling to ramp up sales and revenue generation;
• Continued expansion into large markets in Canada, with a focus on reaching net profitability in Canada and further expanding throughout the United States markets, including with new higher margin customer contracts and/or additional regions.

The company's complete quarterly financial results are available in its unaudited financial statements and management's discussion and analysis for the quarter ended June 30, 2023, each of which have been filed with Canadian and United States securities regulatory agencies, and can be found respectively at SEDAR+ and the SEC website.

The company looks forward to providing additional material updates in the coming weeks.

About Parcelpal Logistics Inc.

Parcelpal is a Vancouver, B.C.-based, company that specializes in last-mile delivery service and logistics solutions. The company 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 its verticals include pharmacy and health, meal kit deliveries, retail, groceries, and more.

We seek Safe Harbor.