Mr. Maximilian Justus reports

GROUNDED PEOPLE ON DEFAULT ANNOUNCEMENT PURSUANT TO NATIONAL POLICY 12-203 - MANAGEMENT CEASE TRADE ORDERS

Grounded People Apparel Inc. is providing this biweekly update on the status of the management cease trade order granted on June 29, 2023 (the MCTO), by its principal regulator, the British Columbia Securities Commission, under National Policy 12-203 -- Management Cease Trade Orders, following the company's announcement on June 29, 2023, that it was unable to file its audited annual financial statements for the financial year ended Feb. 28, 2023, and accompanying management's discussion and analysis, and related certifications on or before June 28, 2023, as required under applicable securities laws. The MCTO does not affect the ability of investors who are not insiders to trade in the securities of the company.

The company reports that: (i) there are no changes to the information contained in the biweekly status update dated June 29, 2023, that would reasonably be expected to be material to an investor; (ii) the company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue biweekly default status reports for so long as the delay in filing the required filings is continuing, each of which will be issued in the form of a press release; (iii) there has not been any other specified default by the company under NP 12-203, and, except as set forth herein, no such other default is anticipated; (iv) the company is not subject to any insolvency proceedings; and (v) there is no material information concerning the affairs of the company that has not been generally disclosed.

The company continues to work with its auditor to complete the audit of the company's consolidated financial statements and expects to file the required filings on or before Aug. 28, 2023. The delays are due to interruptions associated with collection of the required data and documentation to complete the audit of the company.

About Grounded People Apparel Inc.

Grounded People Apparel is a Vancouver-based innovative apparel company focused on delivering high-quality products to its customers that are 100 per cent PETA-approved vegan. The company is primarily engaged in the business of fair trade, sustainable and earth-conscious fashion. The company's products, which are made from sustainable, ethically sourced and produced materials, 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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