Mr. Maximilian Justus reports

GROUNDED CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FINANCING

Grounded People Apparel Inc. has closed the first tranche of the non-brokered private placement of subscription receipts that it previously announced on April 29, 2026, at a price of 15 cents per subscription receipt, for aggregate gross proceeds of $751,999.90. It is anticipated that one or more subsequent tranches of the private placement will close in due course.

Each subscription receipt will entitle the holder thereof, upon satisfaction or waiver of the applicable escrow release conditions, to receive one unit of the corporation. Each unit consists of one common share of the corporation and one-half of one share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of 17 cents per warrant share for a period of 36 months from the date of issuance.

The subscription receipts issued in connection with the first tranche of the private placement will be subject to a statutory hold period of four months from the date of issuance, in accordance with applicable Canadian securities legislation. The private placement is subject to the final approval of the Canadian Securities Exchange.

Pursuant to the terms of the private placement, 25 per cent of the gross proceeds therefrom will be immediately available to the corporation to finance general working capital, administrative and transaction-related expenses (including audit fees, legal fees and other customary costs). A portion of the proceeds will be used to satisfy outstanding fees incurred in connection with obtaining the technical report, and will be treated as bridge financing undertaken to facilitate the corporation's fundamental change and satisfying the listing requirements applicable to an exploration and mining issuer. The remainder of the proceeds will be held in escrow pending completion of the transaction.

About Grounded People Apparel Inc.

Grounded People Apparel is a publicly traded company listed on the Canadian Securities Exchange. The corporation is undertaking a strategic review of its business and evaluating potential opportunities across emerging sectors, with a focus on prudent execution and shareholder value.

We seek Safe Harbor.