Mr. Nicholas Kadysh reports

PHARMALA ISSUES AUDITED YEAR END 2025 AND UNAUDITED Q1 FISCAL 2026 FINANCIAL STATEMENTS

Pharmala Biotech Holdings Inc. has publicly filed its financial results for the periods ended Aug. 31, 2025, and Nov. 30, respectively. All figures are reported in Canadian dollars. The company's full set of audited financial statements for the 2025 fiscal year, as well as its unaudited condensed interim consolidated financial statements for the first quarter of its 2026 fiscal year, and accompanying management's discussion and analysis can be accessed by visiting the company's website and its profile page on SEDAR+.

"Commencing in late 2025 and continuing into Q1 2026, we have taken major steps towards the development of our novel molecules and look to continue this momentum throughout the remainder of fiscal 2026 with the goal of commencing our phase 2a/b clinical trial in Australia," said Nick Kadysh, chief executive officer of Pharmala Biotech. "While we have been prioritizing our development, we have continued to see great traction in demand for our LaNeo MDMA [3,4-methylenedioxymethamphetamine], which has continued to grow our pipeline of clinical trial sales. With the approval of reimbursement for medical treatments using LaNeo MDMA in Australia, both by private medical insurers and by the Australian Department of Veterans Affairs (DVA), we believe that this trend will only continue."

Financial highlights:

• Customer deposits have continued to grow consistently:
  • Year-end 2025 -- an increase of $150,000, offset by recognized revenue of $83,000, resulting in $276,000 compared with $209,000 as at Aug. 31, 2025, and Aug. 31, 2024, respectively;
  • Q1 2026 -- increase of $225,000, offset by recognized revenue of $68,000, resulting in $433,000, compared with $276,000 as at Nov. 30, 2025, and Aug. 31, 2025, respectively;
  • These deposits, generally being 50 per cent of the total contract value, can be recognized along with the remaining revenue when the related product is shipped, which for many customers requires the issuance of their clinical trial and/or import permits from relevant regulatory bodies.

"We have filed our short-form prospectus, secured a lending partner in Australia and have grown our clinical trial revenue pipeline and related customer deposits, all of which will help us to fund our clinical trial and development work," said Will Avery, chief financial officer of Pharmala Biotech. "With these pieces in play, we are excited for the growth we anticipate for Pharmala in the year ahead."

About Pharmala Biotech Holdings Inc.

Pharmala Biotech is a biotechnology company focused on the research, development and manufacturing of MDXX-class molecules, including MDMA. Pharmala was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials as well as commercial sales in selected jurisdictions and to develop novel drugs in the same class. Pharmala is the only company currently provisioning clinical-grade MDMA for patient treatments outside of clinical trials. Pharmala's research and development unit has completed proof-of-concept research into several IP (intellectual property) families, including ALA-002, its lead drug candidate. Pharmala is a regulatory-first organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators.

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