Mr. Tom Wenz reports

IMPACT DEVELOPMENT GROUP INC. ANNOUNCES CANCELLATION OF WARRANTS AND RESTATED LOAN AGREEMENT

Impact Development Group Inc. has cancelled certain common share purchase warrants previously issued in connection with the company's historical loan arrangements.

The warrants that were cancelled consisted of: (i) 1,394,014 bonus warrants issued in connection with a senior secured non-convertible debenture dated Jan. 25, 2024; and (ii) 788,581 bonus warrants reflected in the company's books and records in connection with an operating loan dated Oct. 24, 2024. All such warrants have been cancelled in full pursuant to a warrant cancellation agreement dated Jan. 15, 2026.

The company also announces that it has entered into an amended and restated unsecured loan agreement with Global Axe Investment Holdings, effective as of July 27, 2026. The restated loan agreement remains subject to final acceptance of the TSX Venture Exchange. The restated loan agreement consolidates and amends the company's existing indebtedness to the lender, consisting of: (i) a senior secured debenture dated Jan. 25, 2024, pursuant to which $4.61-million (U.S.) was advanced; (ii) an operating loan dated Oct. 24, 2024, pursuant to which $1-million (U.S.) was advanced; (iii) a promissory note dated Dec. 31, 2024, with a principal amount of $273,000 (U.S.); and (iv) additional advances made during 2025 totalling $5,615,000 (U.S.). The restated loan agreement consolidates prior loans totalling $11,498,000 (U.S.) in principal amount and accrued and unpaid interest of $1,493,115 (U.S.), and provides for up to an additional $1.75-million (U.S.) in new financing, establishing a maximum aggregate principal amount of $13,248,000 (U.S.). The company is not obligated to draw any amounts under the additional facility. Outstanding principal will bear interest at a rate of 12 per cent per annum, and all principal and accrued interest will become due and payable on Dec. 31, 2027. No bonus warrants, replacement warrants or other bonus securities are being issued in connection with the restated loan agreement.

The lender is an arm's-length party to the company, and is not an insider or control person of the company within the meaning of exchange policies.

About Impact Development Group Inc.

Impact is a Panamanian-based real estate developer that provides affordable housing solutions to Panama's growing middle-class supported by a longstanding subsidized government program. The vision of IDG is effectuated by a vertically integrated model, which co-ordinates all services necessary to develop high-quality residential and commercial buildings, including land acquisition, financing, architectural, engineering, off-site manufacturing, general contracting, property management and administration.

We seek Safe Harbor.