Mr. Kal Malhi reports

COLOURED TIES ANNOUNCES LOAN AGREEMENTS

At the request of the TSX Venture Exchange, Coloured Ties Capital Inc. has provided the following clarifying news release with respect to certain loan agreements entered into by the company during the fiscal year 2023.

The company entered into a loan agreement dated March 1, 2023, with Flowing Lithium Exploration Inc., pursuant to which the company agreed to lend FLE $300,000. The FLE loan beared interest at a rate of 4.0 per cent per annum and was due in full on Dec. 31, 2023. The loan was repaid in full on Dec. 8, 2023. The loan to FLE was not considered an arm's-length transaction as Rauni Malhi, a 10-per-cent insider of the company, is also a control person of FLE. The loan to FLE constitutes a related-party transaction as defined in Multilateral Instrument 61-101 (Protection of Minority Securityholders in Special Transactions). The company is relying on the exemption from valuation requirement and minority approval pursuant to Subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, as the loan does not represent more than 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.

Additionally, the company entered into a loan agreement dated June 1, 2023, with Canuck Lithium Corp., pursuant to which the company has agreed to lend Canuck $265,000. The Canuck loan shall bear interest at a rate of 4.0 per cent per annum and is due in full on Dec. 31, 2024, a date which was extended form the original due date of Dec. 31, 2023. The loan to Canuck was not considered an arm's-length transaction as Christopher Cooper, a director of the company, was a director of Canuck at the time of the loan. The loan to Canuck constitutes a related-party transaction as defined in Multilateral Instrument 61-101 (Protection of Minority Securityholders in Special Transactions). The company is relying on the exemption from valuation requirement and minority approval pursuant to Subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, as the loan does not represent more than 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.

FLE and Canuck are arm's length from each other.

The company is continuing to work with the TSX Venture Exchange to return to trading in the near future and will provide updates on the status as obtained from the TSX Venture Exchange.