Mr. Jon Gill reports

PLAYGROUND ANNOUNCES LOAN

Playground Ventures Inc. has issued secured promissory grid notes to certain lenders of the company for available proceeds to the company of up to $100,000. The loan has a term of April 30, 2024, and is secured against all of the assets of the company. The company may draw on the available proceeds of the bridge notes from time to time during the term, and the amounts outstanding under the bridge notes bear interest of 8 per cent per annum payable with any outstanding principal at the end of the term, and the interest increases to 15 per cent per annum upon an event of default. In addition, further to the company's press release of Feb. 16, 2023, the outstanding bridge notes issued on Feb. 16, 2023, have been noted in default and now bear an interest of 15 per cent per annum.

The loan contains certain other customary financial and other covenants, and will be used for general working capital purposes. The bridge notes are intended to provide immediate capital to the company while it seeks additional sources of capital, which may include the future issuance of other debt or equity securities, including, without limitation, a formal credit facility, whether with the lenders or otherwise, to meet the company's long-term capital needs.

The issuance of the bridge notes is constituted related party transactions as defined in Multilateral Instrument 61-101 -- Protection of Minority Securityholders in Special Transactions (MI 61-101), as the lenders are directors and/or officers of the company. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(g) and 5.7(1)(e) of MI 61-101, as the company is in financial difficulty and the transaction is designed to improve the financial position of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the issuance of the bridge notes, which the company deems reasonable.

The loan was approved by the members of the board of directors of the company, who are independent for the purposes of the loan, being all directors other than Jon Gill and Emma Fairhurst. No special committee was established in connection with the bridge notes, and no materially contrary view or abstention was expressed or made by any director of the company in relation thereto.

We seek Safe Harbor.