Mr. Jason Dussault of Intellistake reports

INTELLISTAKE ANNOUNCES C$1,573,000 DEVELOPMENT AGREEMENT WITH PROSPECT MARKETS TO BUILD 'GRAVITY', A LIQUIDITY MANAGEMENT SYSTEM FOR PREDICTION MARKETS

Intellistake Technologies Corp. has entered into a development and platform agreement dated March 2, 2026, with Prospect Prediction Markets Inc. (Prospect Markets), a publicly traded prediction market platform focused on sports and the global athlete economy.

Key highlights:

• Development and platform agreement between Intellistake Technologies and Prospect Markets for a signed contract value today of $1,573,000 (Canadian-dollar equivalent), with payments received in stages over an initial 18-to-20-week development term and subsequent 24-month licence term;
• Intellistake appointed as developer to design and build Gravity -- a modular liquidity-plus-execution-layer software program for prediction markets designed to keep markets tradable, liquid and capital efficient, addressing the thin liquidity conditions that limit the sector's wider adoption;
• Prospect Markets will integrate Gravity directly into its prediction market platform, which spans major global sports with licensed real-time data coverage across the NHL (National Hockey League), NFL (National Football League), NBA (National Basketball Association) and MLB (Major League Baseball) and international football competitions, including the English Premier League and the World Cup.

Under the agreement, Intellistake originated Gravity and will serve as the software provider responsible for designing and developing the solution, with Prospect Markets co-financing development. The parties will hold certain rights in the Gravity IP (intellectual property) or data generated from its operation as set out in the agreement, and Prospect Markets will receive a two-year exclusivity licence to integrate and use Gravity on its platform.

Prospect Markets is developing a regulated, sports-focused prediction market platform with licensed real-time data coverage across major North American leagues, including the NHL, NFL, NBA and MLB, as well as international football competitions, including the English Premier League and the World Cup. Intellistake will build Gravity (a modular liquidity-plus-execution-layer software program) to address the liquidity challenges prediction markets face through a phased development road map, beginning with Stage A (proof of concept, approximately four weeks). Development will progress through subsequent stages (Stage B -- MVP, approximately four to six weeks after Stage A), and culminate in Stage C -- full production release (approximately 10 weeks after Stage B), at which point Prospect Markets will integrate Gravity directly into its platform.

The total consideration payable for the first three stages (A, B and C) is $550,000 (U.S.). After the end of Stage C, the 24-month licence will commence at a rate of $25,000 (U.S.) per month for the subsequent 24 months for a total of $600,000 (U.S.). Total development costs are expected to be $300,000 (U.S.).

Gravity: infrastructure designed for high-volume event markets

Gravity is being developed as a modular liquidity and execution engine designed to help prediction markets stay tradable, liquid and capital efficient, especially during high-volume event markets. It focuses on three common problems: Liquidity often collapses when a market becomes very one sided. Passive liquidity can get hit hard when breaking news causes a fast rush of trades. New niche markets often fail to attract enough depth at launch.

When a market moves to extreme odds (for example 90/10), the weaker side can become thin, spreads widen, and slippage gets worse, so users struggle to trade size without moving the price. Gravity is being designed to increase incentives on the weaker side to bring liquidity back where it is needed most. When breaking news creates a one-direction rush, Gravity is being designed to make that rush-flow move during directional imbalance and use it to support rebalancing, helping markets stay usable. For new market launches, Gravity is being designed to use a short auction to set an opening reference price and apply early incentives so markets can build depth faster from day one.

Gravity is being developed at a time of immense traction for the sector as the structural challenges prediction markets face become increasingly apparent.

Prediction markets market summary

Prediction market trading volumes have expanded rapidly in recent years, according to industry analysis published by FalconX:

• 2025 market volume: approximately $64-billion;
• January, 2026, monthly volume: approximately $27-billion;
• 2026 annualized run rate (based on January, 2026, activity): approximately $325-billion plus;
• Sequential growth (2024 to 2025): approximately four times increase.

Sports are fuelling the growth as prediction markets mature. Public reporting indicates that Kalshi, a leading U.S.-regulated prediction market exchange, derives approximately 90 per cent of its trading volume from sports contracts. In January, 2026, Kalshi reported surpassing $1-billion in daily trading volume during the Super Bowl, representing a 2,700-per-cent year-over-year increase.

Despite this growth, thin liquidity has been identified as a key barrier to wider adoption. It is against this backdrop that Intellistake and Prospect Markets have entered into the agreement.

The agreement

Jason Dussault, chief executive officer of Intellistake, commented: "Prediction markets have a well-known pressure point -- when order flow becomes heavily one sided, liquidity deteriorates and slippage follows. These markets are still developing, and I believe the underlying infrastructure required to keep them stable, resilient and executing properly under pressure has not yet been fully built. At Intellistake, we are developing systems designed to address these challenges, and Gravity is how we intend to demonstrate that capability.

"More broadly, I believe blockchain will transform daily life in much the same way the Internet did -- by creating open, transparent and programmable systems that enable entirely new economic models. Prediction markets are a perfect example of this evolution, with the potential to disrupt and redefine massive global gaming and derivatives markets. We are excited to be building Gravity alongside the Prospect Markets team and helping lay the foundation for this next generation of market infrastructure."

Johnny Chen, founder and chief executive officer of Prospect Markets, commented: "As we prepare to scale our platform across major global sports, market quality becomes just as important as market coverage. Our platform is designed to support real-time, high-frequency sports prediction markets, and that requires infrastructure that can remain resilient during peak activity. Working with Intellistake on the development of Gravity allows us to address liquidity stress at the system level, helping ensure a consistent and reliable experience for users as volume and engagement grow.

"Conversely, one of the core fundamental challenges facing prediction markets today is the cold-start problem. This is particularly true for niche and emerging sports, a vertical we see significant growth potential in. By integrating financial principles such as auction-based mechanisms to accelerate price discovery, the Gravity engine is positioned to lead in the next generation of prediction market infrastructure."

The agreement provides for total consideration payable to Intellistake of up to $1.15-million (U.S.) for the development and licensing of Gravity. It is anticipated that, subject to stock exchange approval, $1-million (U.S.) of the consideration shall be payable to Intellistake through the issuance of shares of Prospect Markets.

Further updates will be provided as development milestones are reached and integration progresses.

Note: U.S.-dollar amounts have been converted to Canadian dollars at a rate of $1 (U.S.) to $1.3685 (Canadian) on Feb. 20, 2026.

About Intellistake Technologies Corp.

Intellistake is developing software solutions that leverage decentralized AI (artificial intelligence) infrastructure to deliver enterprise-grade intelligence. Through validator operations, strategic token participation and the development of enterprise AI agents, Intellistake seeks to bridge the gap between emerging decentralized networks and real-world industry adoption.

About Prospect Prediction Markets Inc.

Prospect Markets is a sports-focused prediction market and fan engagement platform. The company's platform enables fans to participate in transparent, real-time prediction markets across all sports, providing enriched, data-driven experiences that deepen engagement before, during and after games. By crowdsourcing sentiment through market participation, Prospect Markets generates actionable insight into fan expectations and transforms passive sports viewership into active participation.

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