Mr. Tomer Bar Meir reports

ESHBAL ANNOUNCES APPOINTMENT OF NIR PELES TO BOARD OF DIRECTORS, ACHIEVEMENT OF REVENUE MILESTONES AND ONTARIO CONTINUANCE

Eshbal Functional Food Inc. has appointed Nir Peles to its board of directors, the achievement of certain performance milestones associated with the company's reverse takeover transaction completed in April, 2025, and has completed the company's continuance into the Province of Ontario.

Nir Peles -- new director

Eshbal today announced that the company's board of directors has appointed Mr. Peles to serve as a director of Eshbal.

Yuval Levy, chairman, on behalf of the company's board of directors, commented: "I am delighted to welcome Nir, whom I know for many years, to Eshbal's board of directors. With deep industry expertise and a proven strength in strategic planning and capital markets, he brings valuable insights and leadership as we continue to guide Eshbal's long-term strategy. We look forward to Nir's contributions in the years ahead."

Mr. Peles is an entrepreneur, equity investor and founder of BioMeat FoodTech (TLV: BIMT), a public food-tech investment platform focused on alternative proteins and next-generation food innovation. Mr. Peles has extensive experience in business development, strategic growth initiatives and M&A (merger and acquisition) transactions, with a particular focus on functional foods, gluten-free products, personalized nutrition and better-for-you consumer brands. Mr. Peles is a CPA and studied for his MBA at Tel Aviv University, holds a master of laws degree from Bar Ilan University, and a master's degree in Sea Resource Management.

With the addition of Mr. Peles to the company, Eshbal company continues evaluating new product categories and technology and artificial-intelligence-assisted development initiatives focused on emerging health and wellness trends, including gluten-free and GLP-1 friendly nutritional solutions. Management believes these initiatives may support future product innovation and expansion into additional better-for-you consumer segments.

Annualized revenue milestones achieved

On April 28, 2026, the board confirmed the achievement of two performance milestones associated with the reverse takeover transaction completed in April, 2025 (the RTO), specifically the achievement of: (i) annualized gross revenues of at least $17-million with earnings before interest, taxes, depreciation and amortization (EBITDA) of at least 3 per cent of gross revenues; and (ii) annualized gross revenues of at least $18.5-million with EBITDA of at least 3.8 per cent of gross revenues. This achievement triggered the issuance of 11.2 million common shares in the capital of Eshbal to certain original shareholders of Eshbal Functional Food (Agricultural Cooperative) Ltd. (Eshbal Israel).

Finance-linked share issuances

In connection with the RTO, the original shareholders of Eshbal Israel were issued compensation securities convertible, for no consideration, into common Shares if certain conditions were met. On April 28, 2026, the board confirmed that the conditions were met triggering the issuance of 3,241,238 common shares to certain original shareholders of Eshbal Israel.

Ontario continuance

Eshbal also announces that, effective April 14, 2026, the company has been continued from British Columbia (Business Corporations Act (British Columbia)) to Ontario (Business Corporations Act (Ontario)).

The company adopted new articles and bylaws as part of the continuance, which replaced the prior articles and bylaws of the company. The continuance and the new articles and bylaws of the company were each approved by shareholders at the company's special meeting of shareholders held on April 10, 2026. Copies of the certificate of continuance and the new articles and bylaws of the company will be available on SEDAR+ under the company's issuer profile.

About Eshbal Functional Food Inc.

Eshbal Functional Food is a publicly traded food-tech company focused on building a scalable platform of gluten-free and health-oriented food brands across retail, food-service and on-line channels in North America.

Since listing on the TSX Venture Exchange in 2025, Eshbal has been executing its North American growth strategy through a combination of organic expansion and strategic acquisitions. The company's operations include gluten-free, better-for-you and functional food products sold across retail, food-service and on-line channels.

During this period, the company completed the acquisition of Gluten Free Nation, acquired a majority interest in Dare to Be Different Foods, launched localized North American production in partnership with Queen Street Bakery, and strengthened its commercial infrastructure in the region.

Eshbal's strategy is focused on integrating complementary better-for-you brands into a centralized operating platform designed to expand distribution, support operational efficiencies and create long-term growth opportunities.

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