Mr. Mark Holmes reports

ZONETAIL INC. ANNOUNCES NEW NON-BROKERED PRIVATE PLACEMENT FOR UP TO $1,000,000

Zonetail Inc. intends to offer for sale, on a non-brokered private placement basis, securities of the company consisting of shares of the company at a price of two cents per share for aggregate gross proceeds of up to $1-million. The offering is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange, as well as the satisfaction of other customary closing conditions. Assuming the maximum proceeds are raised, the company will issue 50 million shares.

In connection with the offering, the company may pay finders' fees equal to 6 per cent of the gross proceeds in cash and issue 6 per cent non-transferable warrants to various registered dealers or finders, representing up to 6 per cent of the shares sold through such registered dealers or finders in the offering. Each finder warrant will entitle the holder thereof to purchase one Zonetail share at a price of five cents per share for a period of 36 months from the closing date of the offering.

The proceeds derived from the sale of the shares will be for the completion of the company's rent reporting portal, further development projects and sales efforts, as well as general working capital purposes. Assuming aggregate gross proceeds are raised, approximately 22 per cent will be used for non-arm's-length salaries, 36 per cent for technology additions, 7 per cent for arm's-length salaries, 15 per cent for sales and marketing, and 17 per cent for administration.

A portion of the offering may be allocated to investors relying on the accredited investor or other exemptions available to Zonetail under National Instrument 45-106 (Prospectus Exemptions).

Certain insiders of Zonetail may participate in the offering; however, the total participation by insiders is not expected to exceed 25 per cent of the offering.

All of the securities issuable in connection with the offering will be subject to a hold period expiring four months and one day after the date of issuance of the securities.

It is anticipated that the first closing of the offering will occur on or about Sept. 30, 2025, with a final closing no later than Oct. 22, 2025. Zonetail will update shareholders when the offering has been completed and TSX-V final approval has been received.

About Zonetail Inc.

Zonetail is a mobile platform and market network. Its mission is to provide a state-of-the-art mobile platform that enables high-rise residents to better manage their homes by connecting people to products, amenities and services. Its vision is to build a critical mass of users in the hard-to-reach, high-rise residential vertical, through a unique mobile market network model -- providing vital information, products and services at the tap of a screen. The company is the search engine to optimize your home.

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