Mr. Meris Kott reports

PEGASUS MERCANTILE ANNOUNCES CEASE TRADE ORDER

The British Columbia Securities Commission (BCSC) has issued a failure-to-file cease trade order (FFCTO) dated Feb. 4, 2026, due to Pegasus Mercantile Inc. not being able to file its annual financial statements and management's discussion and analysis (MD&A) for the year ended Sept. 30, 2025, on SEDAR+ by Jan. 28, 2026.

The company applied for a management cease trade order (MCTO) on Jan. 15, 2026, due to delays obtaining information regarding one of the issuer's subsidiaries and a recent acquisition project, and the application for an MCTO was declined by the BCSC.

The FFCTO is a result of the company's delayed filing of its: (i) audited consolidated financial statements for the fiscal year ended Sept. 30, 2025; (ii) management's discussion and analysis relating to the annual financial statements; (iii) chief executive officer and chief financial officer certificates relating to the annual financial statements.

The FFCTO provides an exception for beneficial security holders of the company who are not currently (and who were not as of Feb. 3, 2026) insiders or control persons of the company and who sell securities of the company acquired before Feb. 3, 2026, if both of the following criteria are met:

• The sale is made through a foreign organized regulated market, as defined in Section 1.1 of the universal market integrity rules of the Canadian Investment Regulatory Organization;
• The sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation.

The FFCTO will remain in place until such time as the annual filings and all continuous disclosure requirements have been satisfied and the company receives an order from the BCSC revoking the FFCTO. The company will make further announcements with respect to the status of the annual filings and the FFCTO as and when appropriate.

About Pegasus Mercantile Inc.

Pegasus is a prospect generator that provides high-growth companies with financial, operational and management assistance. The company has expanded and is entering a new phase of diversification. The focus of the company has been on global wellness, psychedelics, mycology, hemp and CBD (cananabidiol), health care related target companies, and their clinical studies and trials.

We seek Safe Harbor.