Mr. Rob Anson reports

FOBI AI ANNOUNCES COMPLETION OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Fobi AI Inc. has completed its first tranche closing of a non-brokered private placement financing previously announced on Dec. 12, 2025. The first tranche comprise the issuance of 10,084,000 units of the company at a price per unit of five cents for aggregate gross proceeds of $504,200. Each unit consisted of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of 10 cents until 36 months from the date of issuance of the warrants. The common shares and warrants comprising the units, as well as the common shares issuable upon exercise of the warrants, are subject to a four-month-and-one-day hold period in accordance with the policies of the TSX Venture Exchange and applicable securities legislation, as well as the provisions of the failure-to-file cease trade order issued against the company on Nov. 1, 2024 (CTO).

In connection with the first tranche, the company entered into a finder's fee agreement with Raymond James Ltd., an arm's-length finder. In connection with the closing of the first tranche, an aggregate of $3,500 was paid in cash and a total of 70,000 non-transferable finder warrants were issued. Each of the finder warrants has the same terms as the warrants.

The company intends to use the net proceeds of the offering for sales and marketing, product expansion and integration, market expansion, and general working capital and corporate expenses.

The offering is subject to the final approval of the TSX Venture Exchange.

As previously disclosed, the company is currently subject to a CTO issued by the British Columbia Securities Commission (BCSC) as a result of the company's failure to file certain continuous disclosure documents within the prescribed time periods. The BCSC has granted a partial revocation order dated Dec. 12, 2025, CTO to permit the company to complete the offering. The company is actively working to remedy the default and expects to apply for a full revocation of the CTO upon completion of its outstanding filings. Until the CTO is revoked, the company's securities will remain subject to trading restrictions and may not be traded by the public.

Extension of offering

Fobi may close one or more additional tranches of the offering on or prior to Feb. 25, 2026, or such other date or dates as may be determined by Fobi and acceptable to the TSX-V. The offering remains subject to final approval of the TSX-V.

About Fobi AI Inc.

Fobi AI is a data and AI technology company that enables digital transformation through real-time data, mobile-wallet engagement and Web 3-ready solutions. By integrating strategy, technical architecture and execution, Fobi helps clients across retail, sports, health care and regulated industries translate digital initiatives into measurable business results.

We seek Safe Harbor.