Mr. Justin Schroenn reports

SWMBRD CLARIFIES RESIGNATION OF MANAGEMENT AND DIRECTORS AND ANNOUNCES SALE OF IP AND MOLD

Further to SWMBRD Sports Inc.'s news release of Oct. 19, 2024, the company clarifies that Matthew Schroenn and Gareth Schroenn, in addition to having resigned as directors of SWMBRD Sports, did also at that time resign their positions as vice-presidents and have not been employed by the company since that time.

Justin Schroenn remains chief executive officer and president and is the sole executive in place currently.

The company is assessing potential replacement directors.

The company is actively seeking new management.

The company also announces that it has concluded the arm's-length sale to Archi Medez Sports Inc. of the existing SWMBRD production mould located at Tahe Sports Inc. (France), along with all intellectual property pertaining to the specific design iteration pertaining to the production mould, including the following.

As consideration for the sale of the aforementioned assets, subject to the terms specified in the agreement, for a period of five years from the date of the agreement or until a total of $150,000 has been paid by the Archi Medez to SWMBRD, Archi Medez will pay, as royalties, 1.5 per cent of gross product revenues in respect of each SWMBRD aquatic sports board sold by the Archi Medez or its affiliates. All royalties will be paid in Canadian dollars, net of any withholding taxes.

SWMBRD Sports retains ownership of the intellectual property applications and registered design patents, where still active, pertaining to certain other embodiments of the SWMBRD aquatic sports board and related accessories listed below.

As shareholders are aware, the company remains halted. Management is endeavouring to resolve this issue and continues to have discussions with potential partners that might be able to assist in bringing the company back to trade.