Mr. Levy Cohen reports

WELLFIELD TECHNOLOGIES, INC. REPORTS Q2 FINANCIAL RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 AND OTHER CORPORATE UPDATES

Wellfield Technologies Inc. has released its unaudited financial results for the interim period ended Sept. 30, 2023, which are available on the company's SEDAR+ profile. All currency referenced used in this news release are in Canadian dollars unless otherwise noted.

Financial highlights:

• Gross margins of $1.1-million for Q2 ended Sept. 30, 2023, compared with $800,000 in Q1 2023;
• Cash and short-term receivables exceed $1-million for Q2 ended Sept. 30, 2023;
• Operating expenses reduced by $800,000 over the previous quarter ending June 30, 2023, attributed to the reorganization of Coinmama operations, announced in July, 2023;
• Net loss of two cents per share for the quarter ending Sept. 30, 2023.

Management commentary

Levy Cohen, chief executive officer of Wellfield, commented: "This second fiscal quarter has marked a significant milestone in Coinmama's ability to generate gross margins during a challenging market environment. With additional cost savings we expect to realize in the following quarters, Coinmama is now a strong and sustainable business that contributes meaningful gross margins as Wellfield prepares to launch new products and works toward profitability. Leveraging Coinmama's large base of returning users and over 150,000 new user registrations during the calendar year, we anticipate that we have the customer base to quickly monetize Wellfield's decentralized financial services and ethereum-based digital gold that will be launched to the public early next year."

Other corporate updates

The company also announces that the company's board of directors has approved the grant of an aggregate of 2.5 million restricted share units (RSUs) to certain directors, officers and employees of the company pursuant to its amended and restated omnibus incentive plan. The RSUs have a vesting period of one year. Subject to the plan and the TSX Venture Exchange policies, each vested RSU entitles the holder to receive, on settlement, a cash payment equal to the closing price of the common shares in the capital of the company on the last trading date prior to settlement, or at the discretion of the board of directors, one common share, or a combination of cash and common shares.

The maximum number of common shares reserved for issue pursuant to this plan pursuant to the exercise of options granted under this plan is equal to 10 per cent of the number of common shares outstanding and the maximum number of common shares reserved for issuance, in the aggregate, pursuant to the settlement of RSUs granted under the plan is 17,310,020. Upon completion of the grants referred to herein, there will be 13,332,208 RSUs and 300,000 options granted under the plan, representing an aggregate 7.86 per cent of the outstanding common shares as of the date hereof.

About Wellfield Technologies Inc.

Wellfield is an research and development-focused fintech company that operates on public blockchains, including bitcoin and ethereum. The company operates a regulated platform that onboards customers globally at scale, leveraging its proprietary decentralized technology to offer highly disruptive on-chain self-custody solutions. Wellfield leverages these assets to operate two business lines: Coinmama (for consumers) with over 3.5 million registered users globally, and Wellfield Capital for institutional and professional investors. Additionally, Wellfield has recently expanded the scope and monetization potential of its technology by acquiring Tradewind Markets Inc. Tradewind Markets digitizes real-world assets, starting with its flagship VaultChain gold and VaultChain silver products, which offer blockchain-based digital ownership of deliverable precious metals held in custody by the Royal Canadian Mint.

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