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 non-transferable warrants equal to 6 per cent of the shares sold through various 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 offering primarily to accelerate revenue-generating initiatives, including the expansion of its sales team, the completion and commercialization of Zonetail's new AI-powered (artificial intelligence) residential marketplace, and the pursuit and development of new strategic partnerships and financial-service offerings, including potential credit card opportunities. The company also intends to support the continued commercialization of its existing products and services, including rent reporting, payments and rewards, and to use a portion of the proceeds for 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 Oct. 31, 2026, with a final closing no later than Nov. 17, 2026.

The company also announces that the private placement originally announced on May 20, 2026, with a first closing announced on June 2, 2026, closed on Aug. 1, 2026. The company raised aggregate gross proceeds of $97,500 under that financing, with no further closings.

About Zonetail Inc.

Zonetail is a residential technology company building a digital platform designed to connect property managers and residents with the products, services and financial tools associated with their homes.

Zonetail's platform brings together a growing suite of services, including its residential marketplace, rent reporting, payments and rewards initiatives. Through integrations and relationships with property management companies and technology and financial-service providers, Zonetail is focused on creating new revenue opportunities while providing property managers with value-added services for their residents.

The company's strategy is focused on expanding the number of residential households accessible through the Zonetail platform, increasing marketplace participation, and accelerating the commercialization of its revenue-generating products and services.

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