Mr. Michael Perron reports

MTL CANNABIS CORP. REPORTS SECOND QUARTER RESULTS WITH $25.4 MILLION OF REVENUE, STRONG GROSS MARGINS, AND STRENGTHENED BALANCE SHEET

MTL Cannabis Corp. has filed its financial statements as at and for the three-month and six-month periods ending Sept. 30, 2025, and 2024. Complete details may be found on the company's SEDAR+ profile.

Second quarter 2025 consolidated financial highlights:

• The company generated revenue of $25,365,570 during the second quarter of fiscal 2026, compared with $26,434,502 in the same quarter of last fiscal year.
• The company generated net revenue of $20,613,664 during the second quarter of fiscal 2026, compared with $20,869,898 in the same quarter of last fiscal year.
• The company generated gross margins before fair value adjustments of 50 per cent during the second quarter of fiscal 2026, an increase of 7 per cent over the previous fiscal quarter, and a decrease of 4 per cent, compared with 54 per cent in the same quarter of last fiscal year.
• The company continues to generate positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $2,223,919 during the second quarter of fiscal 2026.

Management commentary:

"We are incredibly proud of our continued progress as a business, demonstrating the strength of our core operations with stable revenue, strong margins and continued EBITDA performance. We continue to make progress with the realignment of our internal supply chain to enhance profitability and internal capacity, notably the successful transition of our medical fulfilment operations from Pickering to Montreal, as well as continued investments into cultivation technologies and streamlining our asset portfolio, which we expect will have meaningful and positive contributions towards our future margins and profitability," said Michael Perron, chief executive officer of MTL. "At the same time, we have been able to successfully streamline our capital structure, reducing legacy obligations and positioning the company for sustainable long-term growth. This strategic reset aligns our balance sheet with the performance we are delivering across the business. We look forward to continuing to enhance our operations throughout the rest of the year as we position MTL to take advantage of future growth initiatives."

Summary of new credit agreement

On July 30, 2025, the company closed a credit agreement with a Canadian Schedule 1 bank to assist with capital expenditures, finance working capital and refinance existing debt. The credit agreement is comprised of the following facilities:

• An uncommitted demand revolving credit facility of up to $4-million (the RT facility);
• A committed non-revolving term credit facility, by way of a single drawdown, in the amount of $6.75-million (the NRT 1 facility);
• A committed non-revolving term credit facility, by way of a single drawdown, in the amount of $12.15-million (the NRT 2 facility);
• An uncommitted delayed draw non-revolving term credit facility, available by way of one or more drawdowns, in the amount of $4.12-million (the DDTL facility).

All facilities (the credit facilities) mature on July 28, 2028, and bear interest based on the Canadian overnight repo rate average plus an applicable margin, or the Canadian prime rate plus an applicable margin. The credit facilities are secured against (i) all of the present and after-acquired undertakings, property and assets of the company and its material operating subsidiaries, and (ii) the property located at 551 Rue Saint-Marc, Louiseville, Que., by a first-ranking collateral mortgage.

The attached table provides a reconciliation of net income (loss) as reported under IFRS (international financial reporting standards) to EBITDA and adjusted EBITDA for each of the three-month periods ended Sept. 30, 2025, and 2024.

About MTL Cannabis Corp.

MTL Cannabis is the parent company of Montreal Medical Cannabis Inc., a licensed producer operating from a 57,000-square-foot licensed indoor grow facility in Pointe Claire, Que.; Abba Medix Corp., a licensed producer in Pickering, Ont., that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Que., growing best-in-class indoor cannabis, in its 64,000 square ft production facility; and Canada House Clinics Inc., operating clinics across Canada that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions.

As a flower-first company built for the modern street, MTL Cannabis uses proprietary hydroponic growing methodologies supported by handcrafted techniques to produce products that are truly craft for the masses. MTL Cannabis focuses on craft quality cannabis products, including lines of dried flower, prerolls and hash marketed under the MTL Cannabis, Low Key by MTL and R'belle brands for the Canadian market through nine distribution arrangements with various provincial cannabis distributors. MTL Cannabis has also developed several export channels for bulk and unbranded GACP quality cannabis.

It is MTL's goal for Abba Medix Corp. to become the leading distributor of medical cannabis in Canada and for Canada House Clinics to be the leading Canadian provider of medical cannabis clinic services.

We seek Safe Harbor.