Mr. Rodrigo Gallardo reports

XEBRA PROVIDES UPDATE ON MANAGEMENT CEASE TRADE ORDER

Xebra Brands Ltd. has provided an update to its previously disclosed management cease trade order (MCTO), announced on July 2, 2025, in respect of the audited annual financial statements and corresponding management discussion and analysis for the year ended Feb. 28, 2025, including the chief executive officer and chief financial officer certifications, that were not filed by the required filing deadline of June 30, 2025.

As previously disclosed, the annual financial filings were not filed by the filing deadline due to the fact that there have been certain liquidity constraints and delays associated with recent changes of management.

The company is working expeditiously on the steps required to complete the annual financial filings and expects to be able to file the annual financial filings by Aug. 29, 2025. The company will provide updates as further information relating to the annual financial filings becomes available.

Until the annual financial filings are filed, the MCTO will be in effect. Additionally, the company will issue biweekly default status reports in accordance with National Policy 12-203, Management Cease Trade Orders. The company intends to satisfy the provisions of the alternative information guidelines during the period it remains in default of the filing requirements. The company confirms that there have been no material business developments or other material information relating to its affairs as of the date of this news release that have not been generally disclosed.

About Xebra Brands Ltd.

Xebra Brands is a Canadian cannabis company with international reach, focused on the development and commercialization of cannabis-derived wellness products. Xebra is the first company to receive full authorization to import, cultivate, manufacture and sell cannabis (1 per cent tetrahydrocannabinol) in Mexico and is actively expanding its Elements product line through strategic partnerships in North America.

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