Mr. Al Thorgeirson reports

SPARX ANNOUNCES DELAY OF FILINGS

Sparx Technology Inc. anticipates a delay in filing its financial statements for the period ended June 30, 2023, and the related management's discussion and analysis, and CEO (chief executive officer) and CFO (chief financial officer) certifications, which are required to be filed on or before Oct. 30, 2023. The expected delay in filing the required filings is due to a delay in payment of audit fees, which has since been resolved.

The company applied to the British Columbia Securities Commission (the BCSC), the company's principal securities regulator in Canada, for the issuance of a management cease trade order (MCTO) under the provisions of National Policy 12-203 -- Management Cease Trade Orders (NP 12-203) to be granted in connection with the late filing of the required filings, so as to permit the continued trading in the company's common shares by persons other than the company's chief executive officer, chief financial officer, and such other directors, officers and persons as determined by the applicable regulatory authorities. The BCSC determined that the company was not entitled to the MCTO as the company's shares did not meet the requirements in NP 12-203 with respect to having an "active, liquid market," and informed the company that staff of the BCSC will issue a failure-to-file cease trade order (an FFCTO) for the failure to file the required filings by the filing deadline. Once issued, the FFCTO will remain in effect until the required filings are filed and will prohibit trading in the company's common shares by any person in each jurisdiction in Canada in which the company is a reporting issuer, for as long as the FFCTO remains in effect. If the default is remedied within 90 days of the date of the FFCTO, including any annual or interim financial statements, management's discussion and analysis, and chief executive officer and chief financial officer certificates that subsequently become due, the filing of the required filings will constitute an application to revoke the FFCTO.

The company will continue to work diligently with its auditor to complete the audit and file the required filings. There is no assurance that the company will be able to remedy its filing default and have the FFCTO revoked in a timely manner or at all.

We seek Safe Harbor.