Mr. Jerry Trent reports

PRINCIPAL TECHNOLOGIES CLOSES THIRD AND FINAL TRANCHE OF OVERSUBSCRIBED PRIVATE PLACEMENT

Principal Technologies Inc. has closed the third and final tranche of its previously announced non-brokered private placement. The company issued an additional 833,333 common shares at 15 cents per share for gross proceeds of $124,999.95, bringing the total offering to 9,993,166 shares for aggregate gross proceeds of $1,498,974.95 when combined with the two previous closings, subject to final approval from the TSX Venture Exchange (TSX-V). For more information on the offering, see the company's news releases dated Oct. 6, 2023, Nov. 21, 2023, and Dec. 21, 2023.

In connection with the closing of tranche 3, finders' fees totalling $4,000 cash were paid and non-transferable share purchase warrants issued to purchase up to 26,667 shares of the company for a period of 24 months from the date of issuance, expiring on Jan. 18, 2026.

"We are very pleased to complete this $1.5-million private placement," said the company's chief executive officer, Jerry Trent. "It provides ample funds for us to be able to seek out and validate a significant health care technologies opportunity for the company, which is our main focus for 2024."

The company intends to use the net proceeds of the offering for working capital in order to secure a major asset and for general corporate purposes. All currency in this news release is denominated in Canadian dollars.

All securities issued pursuant to the offering, and any shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.

We seek Safe Harbor.