Mr. Denis Laviolette reports

EARTHLABS REPORTS RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR 2022

Earthlabs Inc. has released the consolidated financial results for three months and year ended December, 2022, of the company.

"Two thousand twenty-two marked a pivotal year for Earthlabs as we continued to evolve and expand our business," said Denis Laviolette, executive chairman and chief executive officer of Earthlabs. "Our acquisitions of CEO.ca Technologies and DigiGeoData have significantly boosted our advertising and subscriptions revenue while the sale of our exploration technology division has allowed us to focus on core growth areas. Despite market challenges, we remain committed to our new goal of maximizing torque to the junior resource sector for our shareholders through strategic investments and innovative technology offerings. We look forward to building on this momentum and delivering even stronger results in the coming year."

Highlights for the three-month period ended Dec. 31, 2022:

• Closed the sale of the exploration technology division to ALS Goldspot Discoveries Ltd.;
• For the current period, from its recent acquisitions of CEO.ca Technologies Ltd. and DigiGeoData Inc., the company had advertising and subscriptions revenue of $1,599,233, and sales of exploration maps of $100,274, as compared with advertising and subscriptions of $438,773 for the three months ended Dec. 31, 2021;
• Net investment gains of $1,026,576 from the company's investment portfolio, as compared with $3,581,506 for the three months ended Dec. 31, 2021;
• Realized gains from disposition of subsidiaries and assets of $20,445,301, net of tax, offset by net loss from discontinued operations of $148,894 (basic earnings per share of 15 cents) as compared with net loss from discontinued operations of $571,733 (basic loss per share of nil) for the three months ended Dec. 31, 2021;
• Net income and comprehensive income of $7,349,677 (basic earnings per share of six cents) as compared with $2,190,516 (basic earnings per share of two cents) for the three months ended Dec. 31, 2021.

Highlights for the 12-month period ended Dec. 31, 2022, including a 189.7-per-cent increase in advertising and subscription revenue from 2021, on annualized basis:

• Closed the acquisition of DigiGeoData, a mineral resource intelligence data subscription and map service company;
• Completed the year with total cash and cash equivalents (due from brokers, investments and equity investments) of $52,546,191, as compared with $50,337,817 as at Dec. 31, 2021;
• For the current year, from its recent acquisitions of CEO.ca Technologies and DigiGeoData, the company had advertising and subscriptions revenue of $4,017,064 and sales of exploration maps of $286,324, as compared with advertising and subscriptions of $438,773 for the year ended Dec. 31, 2021;
• Net investment losses of $11,062,919 from the company's investment portfolio, as compared with net investment gains of $7,139,069 for the year ended Dec. 31, 2021;
• Realized gains from disposition of subsidiaries and assets of $20,445,301, net of taxes, offset by net loss from discontinued operations of $679,473 (basic earnings per share of 15 cents), as compared with realized gains from disposition of subsidiary of $7,659,798 and net income from discontinued operations of $1,114,200 (basic earnings per share of eight cents) for the year ended Dec. 31, 2021;
• Net loss and comprehensive loss of $6,845,009 (basic loss per share of five cents), as compared with net income and comprehensive income of $11,040,967 (basic earnings per share of 10 cents) for the year ended Dec. 31, 2021.

"Last year, the mining stock market faced extremely challenging conditions," said Mr. Laviolette. "However, our resolve was validated in December as the market and our portfolio began to rebound. As an investment company, we continuously monitor market conditions and strategically structure our portfolio to capitalize on emerging opportunities and maximize returns when the market recovers. We believe our pro-active approach and expertise in the mining sector positions us well to benefit from the positive shifts in the market and deliver value for our shareholders.

"Our financial results for this year also reflected impairment on our equity investment in Golden Planet Mining and goodwill impairment charges on some of our technology assets, which were necessary adjustments in response to evolving market conditions and the strategic shift in our business," said Mr. Laviolette. "These were non-cash charges that have impacted our short-term financial performance. We do not expect any more adjustments moving forward.

"Lastly, in March, 2023, we brought on Mathew Wilson as chief investment officer, a 15-year veteran venture investor with extensive experience and expertise in the mining sector," added Mr. Laviolette. "Mat's guidance will be instrumental in refining our investment strategy and capitalizing on market opportunities." With the addition of Mr. Wilson, Earthlabs' senior leadership team has over 50 years of portfolio management at the largest resource funds in Canada and a successful record of originating, structuring and exiting deals with over $1-billion in value created and $300-million in shareholder funds raised.

Disposition of exploration technology division

On Dec. 1, 2022, the company completed its previously announced sale of its exploration consulting and technology division (ExplorTech division) to ALS Goldspot Discoveries (formerly 1377900 B.C. Ltd.), a wholly owned subsidiary of ALS Ltd., pursuant to an agreement dated Oct. 25, 2022. Headquartered in Brisbane, ALS is the largest provider of laboratory testing, inspection, certification and verification solutions with more than 18,000 employees worldwide. The company received aggregate cash proceeds of $23.4-million and the purchaser assumed up to $6-million in specified liabilities of the company, subject to standard working capital adjustments.

As a result, the operating results of Ridgeline Exploration Services Inc., Geotic Inc. and Earthlabs' consulting division for the years ended Dec. 31, 2022, and Dec. 31, 2021, have been classified as net income (loss) from discontinued operations in the consolidated statements of income (loss) and comprehensive income (loss).

Summary of financial results

The attached table shows selected consolidated financial results as at and for the three and 12 months ended Dec. 31, 2022, with comparatives.

About Earthlabs Inc.

Earthlabs is a mining investment and technology company that aims to maximize torque to the junior resource sector with $50-million in cash and investments, a royalty portfolio, and a full suite of data-driven media SaaS (software as a service) tools and services, including CEO.ca, the largest social media platform for resource investors, and DigiGeoData, a software-based interactive mapping interface that provides Earth modelling, geology data management and specialized financial products.

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