Mr. Rich Wheeless reports

PARCELPAL LOGISTICS INC. ANNOUNCES A SHIFT IN STRATEGY TOWARDS FURTHER U.S. EXPANSION AND SHEDDING MONEY LOSING BUSINESS UNITS

Parcelpal Logistics Inc. will be shifting a significant amount of its focus and resources on its growing United States operations, entering into new profitable contracts primarily in the United States, and shedding any money-losing business units and/or contracts immediately. To this end, it has terminated its largest Canadian contract on a mutually agreeable basis with its customer. Parcelpal's revenue growth and continued record margins have principally been driven by its expansion into the United States, which is the world's largest consumer market, combined with improved operating efficiencies. The top-line revenues coming out of the U.S. have outgrown and outpaced the company's original Canadian contract revenues. Conversely, even though the company's U.S. operations have achieved net profitability starting in June, 2023, and while the company has made concerted improvements in its Canadian contract margins, the existing Canadian side of Parcelpal's business overall has continued to sustain substantial net operating losses dating back to inception. Therefore, given the improved operating results in the U.S. operations, combined with organic opportunities for new higher-margin recurring revenues having been presented to Parcelpal, the company has made the strategic decision to focus its personnel and capital resources moving forward to where the company believes it will result in a higher return on investment and greater shareholder value in the near and long term. Additionally, with a more profitable business, Parcelpal should be positioned to expand more quickly and take advantage of more opportunities as they arise, without the weight of supporting unprofitable operations.

The company will, however, continue to pursue boutique and other high-margin customers in Canada.

Despite terminating Parcelpal's largest Canadian contract and the top-line revenue derived from it, the company believes that with additional operational efficiencies that were previously implemented, one of the two final fiscal quarters of 2023 may still be profitable, as a result of the company's other operations making up the difference in net loss. Simply stated, Parcelpal has achieved very substantial and positive operational progress, and looks forward to achieving even greater growth and success in the near and long term moving forward, especially with the opportunities that this shift presents.

Rich Wheeless, Parcelpal's chief executive officer, stated: "The company's decision to focus substantially all its capital resources and efforts on its profitable operations and additional growth opportunities puts us in the best position for future success, as we are laser focused on high-margin and profitable site expansions, as well as in potentially complementary areas to the logistics space. I believe with these changes, the likelihood of getting to annual breakeven or profitability is much more achievable, sooner. It is also important to note that there are some additional organic opportunities that have been presented in the United States because of the positive performance we have achieved, which is factoring into this decision. I also note that we have been operating in an extremely challenging stock market for small and microcap stocks since the fall of 2021. These broader market conditions have negatively affected our stock price, however, this shift to profitability and targeted expansion is intended to create additional shareholder value for our shareholders. I genuinely thank you all for your continued support and confidence."

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.

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