Mr. Brad Kirby reports

XTM INC. ISSUES SHARES IN SETTLEMENT OF CONVERTIBLE DEBENTURES INTEREST

XTM Inc. has elected to satisfy accrued interest payable on its outstanding convertible debentures as at Sept. 30, 2025, through the issuance of common shares.

The company will issue an aggregate of 18,513,695 common shares, subject to Canadian Securities Exchange approval, at a deemed price of 3.26 cents per share, representing the 20-day volume-weighted average trading price of the company's shares. The issuance satisfies $604,212 in interest obligations in accordance with the terms of the convertible debenture agreements and the policies of the CSE. The shares issued will rank pari passu with all existing common shares of the company.

The issuance includes 7,142,868 common shares to a director of the company in settlement of $233,114 in accrued interest. The director's participation constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements set out in sections 5.5(a) and 5.7(a) of MI 61-101, as the fair market value of the consideration for the transaction does not exceed 25 per cent of the company's market capitalization and is less than $2.5-million.

Separately, the company issued 10.23 million common shares to members of management as part of their previously approved compensation arrangements.

About XTM Inc.

XTM is a fintech business providing real-time payment and earned wage access solutions. XTM's platform enables instant access to earnings for workers and contractors through digital wallets and prepaid cards, serving restaurants, hospitality and gig-economy sectors across North America.

We seek Safe Harbor.