Mr. Stephen Brown reports

FTI FOODTECH INTERNATIONAL PROVIDES CORPORATE UPDATES

FTI Foodtech International Inc. has provided the following corporate updates. The company's reinstatement review with the TSX Venture Exchange remains in progress as of the date of this news release.

Update on the previously announced Pure Defender acquisition

As announced by press release on March 19, 2025, FTI had entered into a proposed acquisition of the Pure Defender brand, which remained subject to acceptance by TSX-V. The company advises that it has elected not to proceed with the proposed acquisition. Accordingly, the pending application with the TSX-V was formally withdrawn on May 29, 2026.

Clarification regarding the $109,000 Pure Defender Sanitizer Inc. product transaction

In its May 11, 2026, news release, the company disclosed a payment of $109,000 to Pure Defender Sanitizer in consideration for the sanitizer product manufactured by Pure Defender. The company wishes to clarify that this payment was never authorized for release and was not paid to Pure Defender as the sanitizer product delivered was found to be past its expiration date and was accordingly not accepted by the company.

The company acknowledges that the $109,000 amount was incorrectly recorded in the company's interim financial statements for the period ended June 30, 2025. FTI has not been able to correct the error in subsequent financial statements due to misunderstandings about the transaction with the company's external accounting firm.

The company apologizes for the incorrect classification. FTI is currently investigating the impact of the accounting error on its financial statements, and will address and correct the error in the company's coming financial statements. The company would like to announce further strengthened financial controls and governance measures to ensure accurate future reporting, designed to prevent accounting errors and reinforce investor confidence.

Key financial control initiatives will include:

• Adoption of rigorous reconciliation and review processes for all financial statements;
• Segregation of duties to reduce the risk of manual errors or misstatements;
• Mandatory quarterly reporting to the board by the audit committee on compliance with control procedures;
• Mandatory financial compliance and ethics training for all accounting staff;
• Clear policies outlining responsibilities and accountability for financial reporting;
• Periodic evaluation and enhancement of all procedures to align with evolving best practices and regulatory requirements of the B.C. Securities Commission and the TSX-V.

Update on management

As disclosed in the company's news release dated Feb. 19, 2026, Richard Rosenblum agreed to serve as the president of the company under an agreement set to expire on June 1, 2026. The company can confirm that the agreement has expired, and Mr. Rosenblum ceased his service as president on June 1, 2026. The company wishes Mr. Rosenblum the best in his future endeavours.

About FTI Foodtech International Inc.

The company is focused on developing an innovative retail/barter platform for products in the cosmetic/skin care that address challenges and promote sustainability within the cosmetic/skin care industry. FTI is committed to delivering high-quality, reliable products and solutions that meet the evolving needs of its customers worldwide.