Mr. Maximilian Justus reports

GROUNDED PEOPLE APPAREL CLOSES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Grounded People Apparel Inc. has closed the first tranche of its non-brokered private placement through the issuance of 1.32 million units at a price of 38 cents per unit for gross proceeds of $501,600. Each unit consists of one share and one transferable share purchase warrant. Each warrant entitles the holder thereof to purchase one additional share of the company until Dec. 27, 2028, at a price of 50 cents per warrant share. The company may close further tranches on or before Jan. 26, 2024, to raise gross proceeds of up to $1-million. The net proceeds from the private placement will be used to support its existing operations and projects and for general working capital purposes.

In connection to the first tranche closing, the company has issued 26,400 shares (administrative shares) of the company to Amalfi Corporate Services Ltd. in consideration for administrative services rendered in connection with the private placement. Amalfi is a private company controlled by Geoff Balderson. Mr. Balderson serves as chief financial officer and a director of the company. No other finders' fees or commissions were paid in connection with completion of the first tranche.

Amalfi is a private company controlled by Mr. Balderson, chief financial officer and a director of the company, and an issuance of administrative 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 administrative 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.

Pursuant to applicable securities laws, all securities issued under the first tranche are subject to a statutory hold period until April 28, 2024.

About Grounded People Apparel Inc.

Grounded People Apparel is an innovative apparel company based in Vancouver, B.C., Canada, that is focused on delivering high-quality products to its customers that are 100 per cent PETA-approved (People for the Ethical Treatment of Animals) 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 that 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 L.A.C.E.S. campaign. The L.A.C.E.S. 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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