Mr. Ben Lui reports

YORKTON EQUITY GROUP INC. ANNOUNCES CONVERTIBLE DEBENTURE PRIVATE PLACEMENT

Yorkton Equity Group Inc., subject to TSX Venture Exchange and other regulatory approvals, has arranged a non-brokered private placement of up to $2.2-million in unsecured convertible debentures of the company.

Each convertible debenture will have an issue price of $1,000 with an interest rate of 8 per cent per annum, payable annually to the convertible debenture holders only in cash no later than 30 days from the anniversary date of the closing date of the offering to the maturity date.

Each convertible debenture will mature on the date that is five years from the date of issuance of the convertible debenture. The principal amount of each convertible debenture may, at the option of the convertible debenture holder, be convertible, in whole or in part during the term, into common shares at a conversion price of 20 cents per common share, after which such principal amount of the convertible debenture will be extinguished.

The company, after a period of 36 months following the date of closing, will have the right, but not the obligation, to redeem the principal amount and any unpaid interest of the convertible debenture in cash, without penalty, at any time prior to the date of maturity by providing a 30-calendar-day notice period to the convertible debenture holder by way of a written notice or a press release duly disseminated. Within 10 business days after receipt of the redemption notice, the convertible debenture holder, at its sole discretion, may request for a conversion (of the principal amount only exclusive of any interest component which is payable in cash only) from the company by the issuance of common shares. All rights to conversion lapse 10 business days after receipt of the redemption notice.

The convertible debentures and any common shares issuable upon conversion will be subject to a statutory hold period lasting four months and one day following the closing date.

The company intends to use the proceeds from the offering for the closing of the acquisition of The Fuse, a 125-unit multifamily residential complex constructed in 2015 and comprising two condominium-grade buildings situated on approximately 2.67 acres of land located in the Summerside neighbourhood at 2105 and 2109 68 St. SW, Edmonton, Alta., as previously announced on Oct. 2, 2023, and for general working capital.

The offering may be completed in multiple tranches and is subject to customary closing conditions, including conditional approval from the exchange. In accordance with applicable securities laws, the convertible debentures issued under the offering will be sold to investors pursuant to prospectus exemptions available under National Instrument 45-106, including exemptions for: accredited investor, offering memorandum, minimum amount investment, and family, friends and business associates. Potential investors are encouraged to contact the company for further information in respect of the offering.

In the event that this transaction is considered a related party transaction pursuant to the policies of the exchange and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, this transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. In particular, the company has determined that the exemption set out in paragraph (b) in Section 5.5 of MI 61-101 is applicable since the company is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange. In addition, regarding the minority shareholder approval exemption, the exemption set out in paragraphs (1)(b) in Section 5.7 of MI 61-101 is applicable in that the distribution of the securities has a fair market value of not more than $2.5-million and the company is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange.

About Yorkton Equity Group Inc.

Yorkton Equity Group is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth and the active management of multifamily rental properties with significant upside potential. Its current geographical focus is in Alberta and British Columbia with diversified and growing economies, and strong population in-migration. Yorkton's business objectives are to achieve growing net operating income (NOI) as well as the asset values in its multifamily rental property portfolio in strategic markets across Western Canada.

The management team at Yorkton Equity Group has well over 30 years of prior real estate experience in acquiring and managing rental assets.

We seek Safe Harbor.