Mr. Chris Yeung reports

UNIVERSAL DIGITAL ANNOUNCES CLOSING OF FIRST TRANCHE OF BROKERED PRIVATE PLACEMENT

Universal Digital Inc. has closed the first tranche of its previously announced brokered private placement offering of 2,431,300 units of the company at a price of 60 cents per unit for aggregate gross proceeds of $1,458,780. The offering was conducted by Beacon Securities Ltd., acting as lead agent and sole bookrunner, and Hampton Securities Ltd.,on a best efforts marketed basis. The company expects to close another tranche of the offering in due course.

Each unit issued under the offering consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant entitles the holder thereof to acquire one common share at an exercise price of 80 cents per warrant share for a period of 24 months from the closing of the offering.

The net proceeds from the offering are intended to be used to: (i) acquire a strategic equity and warrant position in Tokyo Stock Exchange-listed ReYuu Japan Inc.; and (ii) for working capital and general corporate purposes. The ReYuu investment is subject to customary closing conditions, including regulatory approval under Japan's Foreign Exchange and Foreign Trade Act. For further information about the ReYuu investment, please see the company's news release dated Sept. 2, 2025.

The units were issued by way of the listed issuer financing exemption under Part 5A of National Instrument 45-106, Prospectus Exemptions, and in reliance on the amendments to Part 5A of NI 45-106 set forth in Coordinated Blanket Order 45-953, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption, and are not subject to a statutory holder period in accordance with applicable Canadian securities laws.

About Universal Digital Inc.

Universal Digital is a Canadian investment company focused on digital assets, businesses and private and publicly listed entities that are involved in high-growth industries, with a particular focus on blockchain, cryptocurrencies and cryptocurrency technologies. The company aims to provide shareholders with long-term capital growth through a diversified investment approach and to participate in the transformation of global finance through the integration of digital asset strategies.

We seek Safe Harbor.