Mr. Maximilian Justus reports

GROUNDED PEOPLE APPAREL ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Grounded People Apparel Inc. proposes to complete a non-brokered private placement of up to 2,621,579 units of the company at a price of 38 cents per unit for gross proceeds of up to $1-million. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder, on exercise, to purchase one share for a period of five years following the closing date of the financing at the exercise price of 50 cents per share.

The company intends to utilize the proceeds of the financing to support its existing operations and projects and for general working capital purposes.

The company will issue common shares equal to 2.0 per cent of the number of units issued in the offering to Amalfi Corporate Services Ltd. as an administrative fee for Amalfi's assistance with the offering.

Amalfi is a private company controlled by Geoff Balderson, chief financial officer and a director of the company, and an issuance of admin fee shares to Amalfi is considered to be a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the issuance of the admin fee shares issued to Amalfi will not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101.

The company does not anticipate paying any finders' fees related to the financing.

Closing of the proposed financing is anticipated to occur on or about Dec. 27, 2023, and the financing remains subject to certain conditions, including, but not limited to, receipt of all necessary approvals, including the approval of the Canadian Securities Exchange.

Pursuant to applicable securities laws, all securities issued under the financing will be subject to a statutory hold period of four months and one day.

About Grounded People Apparel Inc.

Grounded People, based in Vancouver, B.C., Canada, is an 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 in sustainable and Earth-conscious fashion. The company's initial products 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 and purchase the colour 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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