Mr. Paul Lehal reports

CLOUD3 VENTURES HIGHLIGHTS STRATEGIC INVESTMENT IN ENCORE TECHNOLOGIES AND EXPOSURE TO SOLSTAR SPACE

Cloud3 Ventures Inc. has invested $104,000 in Encore Technologies Corp., consisting of 400,000 common shares, at 26 cents per share, representing approximately 1.28 per cent of Encore's issued and outstanding common shares. The investment follows Encore's completion of an oversubscribed $1.67-million private placement, which closed on Aug. 4, 2026, and the increase of its secured convertible loan investment in Solstar Space Company to approximately $1.16-million (U.S.).

Through its shareholdings in Encore, Cloud3 has indirect exposure to Solstar's on-orbit communications technology through a publicly traded security. Encore has reported that its interest in Solstar is held in the form of a secured convertible loan; Encore does not currently hold an equity interest in Solstar, and conversion of the loan into equity is subject to the terms of that agreement and may not occur. Cloud3 believes this structure may offer a combination of early stage growth exposure and potential future liquidity, valuation transparency, and portfolio flexibility that are not generally available in a direct private-company investment. Any realization of liquidity remains subject to applicable resale restrictions, trading volumes and market conditions, and there is no assurance that Cloud3 will realize any return on its investment in Encore.

"Cloud3's mission is to provide public-market investors with access to unique, high-potential companies during the formative period when technical validation, capital formation and early commercial scale can create significant shareholder value," said Paul Lehal, chief executive officer of Cloud3. "Through Encore, Cloud3 gains exposure to Solstar's demonstrated on-orbit technology while retaining the potential liquidity and strategic flexibility of a listed security. We are enthusiastic about the investment and the optionality it can create for Cloud3 and its shareholders."

Solstar

Solstar is a United States-based space communications infrastructure company developing hardware, software and services designed to provide secure, reliable and on-demand connectivity for spacecraft, commercial space operators, government agencies and future space-based infrastructure. Its products include Wi-Fi access points, space communicators and persistent communications services supporting narrowband and broadband data and voice. Solstar's technology is being developed for low Earth orbit, cislunar and lunar operations, including in-space servicing, manufacturing, rendezvous and docking.

Per the Encore's news release dated June 25, 2026, the Solstar's Deke Space communicator (Deke) is operating successfully on orbit aboard Momentus Inc.'s Vigoride 7 mission, launched by SpaceX Falcon 9. Momentus has reported that Vigoride 7 launched on March 30, 2026, as part of the SpaceX Transporter-16 ride share mission. Deke is designed to provide on-demand links between spacecraft and ground-based operators, as well as between spacecraft. Solstar has reported that Deke is operating successfully on orbit, which Cloud3 views as an important technical milestone as Solstar moves toward broader commercial deployment.

Solstar's earlier flight heritage includes internet connectivity demonstrations on Blue Origin and UP Aerospace missions. According to the U.S. Small Business Administration's SBIR award database, Solstar has received Small Business Innovation Research contracts from NASA and the U.S. Space Force, including a NASA Phase I contract of approximately $149,316 (U.S.) to develop a Lunar Wi-Fi access point in support of NASA's Artemis program, and U.S. Space Force contracts relating to spacecraft communications and data relay.

Information in this news release concerning Solstar and Encore, including the Solstar transaction terms, has been derived from public disclosure made by those companies and other publicly available sources. Cloud3 has not independently verified that information.

Cloud3's investment strategy

Cloud3 seeks to provide investors with access to distinctive public and private companies during the stages when product validation, commercialization, strategic partnerships and growth capital can drive significant value creation. The company prioritizes investments that combine differentiated technology, identifiable catalysts and structures capable of creating long-term value for Cloud3 shareholders.

About Encore Technologies Corp.

Encore Technologies is a Vancouver, British Columbia-based, technology-focused public company advancing intelligent infrastructure solutions and evaluating strategic opportunities in emerging technology sectors. Encore seeks to identify technologies and partnerships with the potential to improve connectivity, operational efficiency and long-term infrastructure resilience.

About Cloud3 Ventures Inc.

Cloud3 Ventures is an investment issuer focused on high-potential companies across a range of industries and sectors, with the objective of generating attractive long-term returns from its investments.

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