Mr. Tony Busser reports

ROUTE1 ANNOUNCES CLOSING OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT FOR GROSS PROCEEDS OF APPROXIMATELY C$234,000

Route1 Inc. has completed the first tranche of its non-brokered private placement (announced Nov. 4, 2025) of units at a price of 7.5 cents per unit for gross proceeds of approximately $234,250.

Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of 10 cents for a period of 18 months from the issue date of the units.

At today's initial closing, the company issued a total of 3,123,332 common shares and 3,123,332 warrants. All securities issued pursuant to the initial closing are subject to a four-month hold period, expiring on March 20, 2026.

In connection with the initial closing, the company paid Canaccord Genuity Corp. a cash finder's fee of $8,812.50 and issued 117,500 finder's warrants. Each finder's warrant entitles the holder to purchase one common share at an exercise price of 10 cents for a period of 18 months from the date of issuance.

Company management subscribed for units totalling $57,999.92, representing approximately 24.76 per cent of the initial closing and 11.60 per cent of the overall offering (which is up to $500,000 as previously announced on Nov. 4, 2025). The subscriptions by and issuance of units to company management constitute a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, in respect of such insider participation.

The company intends to use the net proceeds of the initial closing to fund the development of Route1's actionable business intelligence (ABI) software application.

Version 4.0 -- AI (artificial intelligence) co-pilot

To be released in early 2026, Route1's co-pilot will be an AI operations co-pilot that acts as a force multiplier -- exponentially extending staff capability. It will be purpose built to optimize parking operations by combining advanced machine learning with a secure, scalable platform that keeps control of sensitive data in-house.

The system will run on a dedicated on-premises AI infrastructure including three GPU (graphics processing unit) servers, backed by shared storage, solid-state checkpointing and high-speed networking to deliver consistent low-latency performance.

Sized for state-of-the-art 13B-70B models, Route1's AI co-pilot will be designed for continuous refinement and understanding of unique parking operations and, how socioeconomic factors and decisions can impact those operations in real time. Engineered for adaptive learning through feedback, measurement and refinement cycles, Route1's AI co-pilot will empower the company's clients to achieve even more in the future by unlocking advanced capabilities such as event-aware staffing, predictive compliance sweeps, proactive curb allocation and strategic what-if investment planning. The more it is used, the stronger it becomes -- growing into a domain-specialized AI expert in parking operations.

About Route1 ABI

Through a single intuitive interface, parking professionals can instantly evaluate current operations against dynamic benchmarks developed by Route1's domain experts. Route1's real-world benchmarks are segmented by enforcement and parking, providing intelligent baselines for live performance indicator tracking and trend analysis.

Built-in analytics drive higher visibility, tighter accountability and measurable impact at every layer of a user's operation, including:

• Uncovering latent revenue opportunities;
• Optimizing curbside usage;
• Monitoring parking facility usage, including occupancy, and dwell and turnover times;
• Visualizing compliance -- the good, the bad and the ugly.

Route1 processes raw ALPR streams directly from the company's end-user's mobile and fixed ALPR cameras, providing the most complete, accurate and timely operational picture in the industry. Route1's technology ensures that every visualization reflects ground truth -- allowing for confident, data-backed decision in real time.

About Route1 Inc.

Route1 is an advanced North American technology company that empowers its clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers. Route1 is listed in Canada on the TSX Venture Exchange under the symbol ROI.

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