Mr. Maximilian Justus reports

GROUNDED PEOPLE ANNOUNCES GRANT OF MANAGEMENT CEASE TRADE ORDER

Further to Grounded People Apparel Inc.'s release issued on June 26, 2023, in respect of its application to the British Columbia Securities Commission (the BCSC) for a management cease trade order, the BCSC has granted the MCTO, pursuant to which the company will have until Aug. 28, 2023, to file its annual financial statements, accompanying management's discussion and analysis, and related chief executive officer and chief financial officer certifications for the financial year ended Feb. 28, 2023.

The expected delay in filing the required filings is due to interruptions associated with collection of the required data and documentation to complete the audit of the company. The company has now substantially resolved these issues and is working expeditiously to complete the required filings, with the goal of completing the required filings as quickly as possible, and in any event on or before Aug. 28, 2023, in accordance with the terms of the MCTO.

The company is providing this default announcement in accordance with National Policy 12-203 -- Management Cease Trade Orders (NP 12-203). The MCTO will prohibit the chief executive officer and the chief financial officer of the company from trading in securities of the company for so long as the required filings are not filed. The issuance of the MCTO does not affect the ability of persons other than the chief executive officer and the chief financial officer of the company to trade in the company's securities.

The company confirms that it intends to satisfy the provisions of the alternative information guidelines contained in NP 12-203 for so long as it remains in default as a result of the late filing of the required filings. During the period of default, the company will issue biweekly default status reports in the form of further press releases, which will also be filed on SEDAR. The company confirms that there are no insolvency proceedings against it as of the date of this press release. The company also confirms that there is no other material information concerning the affairs of the company that has not been generally disclosed as of the date of this press release. The company has made the foregoing representations in accordance with the requirements of applicable securities laws.

About Grounded People Apparel Inc.

Grounded People Apparel is an innovative apparel company based in Vancouver, B.C., Canada, focused on delivering high-quality products to its customers that are 100 per cent PETA (People for the Ethical Treatment of Animals) approved vegan. The company is primarily engaged in the business of fair trade, sustainable and Earth-conscious fashion. The company's initial products, which launched in the fourth quarter of 2021, are its high-top and low-cut canvas sneakers, which are made from sustainable, ethically sourced and produced materials, and are manufactured by fair trade workers, in a 100 per cent vegan manufacturing facility which is located in Brazil.

In addition to its commitment to a fashion industry that reduces waste and environmental impacts, the company aims to create a meaningful positive impact on the world through its LACES campaign. The LACES campaign provides consumers an option to select a specific set of shoelaces to accompany their footwear purchase, the colour of which is associated with one of the charities the company has committed to support, whereby all profits from the sale of shoelaces will be donated correspondingly.

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