Mr. Sebastian Wahl reports

A-LABS CAPITAL II CORP. CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

A-Labs Capital II Corp. has closed the first tranche of its previously announced non-brokered private placement of common shares at a price of five cents per share. Pursuant to the offering, which was announced on Dec. 8, 2025, the company has issued two million common shares for aggregate gross proceeds of $100,000. The company did not pay any finders' fees in closing this offering. The shares issued in the first tranche are subject to a hold period of four months and one day expiring May 15, 2026.

One insider of the company subscribed for 500,000 units under the offering, which is a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in subsections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of any related party participation in the offering as neither the fair market value of the subject matter of nor the fair market value of the consideration for the transaction, insofar as it involved the related parties, exceeds 25 per cent of the company's market capitalization.

The company intends to use the proceeds from the offering for general working capital purposes.

We seek Safe Harbor.