Mr. Mark Holmes reports

ZONETAIL INC. ANNOUNCES NEW NON-BROKERED PRIVATE PLACEMENT FOR UP TO $500,000

Zonetail Inc. intends to offer for sale, on a non-brokered private placement basis, securities of the company consisting of common shares in the capital of the company at a price of two cents per Zonetail share for aggregate gross proceeds of up to $500,000. 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 25 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 in 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 Zonetail share for a period of 36 months from the closing date of the offering.

The company intends to use the proceeds from the sale of the Zonetail shares for the completion of the company's rent reporting portal, further development projects and sales efforts, as well as general working capital purposes.

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.

The company intends to close a first tranche of the offering on or about May 31, 2026, with a final closing no later than July 3, 2026.

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. It is the search engine to optimize your home.

We seek Safe Harbor.