Mr. Jerry Trent reports

PRINCIPAL TECHNOLOGIES CLOSES PRIVATE PLACEMENT FINANCING

Principal Technologies Inc., further to its news release of July 16, 2026, regarding the financing of its licence of technology agreement with Oxford University Innovation Ltd., has closed the third round of financing through the issuance of an aggregate of 416,000 common shares of the company at a price of 75 cents per common share for aggregate gross proceeds of $312,000.

The proceeds from the third round will be used to satisfy the company's research and development financing obligations under the licence and for general corporate purposes. No finders' fees were paid in connection with the third round.

The common shares issued in connection with the third round are subject to a statutory hold period expiring Nov. 25, 2026, being the date that is four months and one day from the date of issuance, in accordance with applicable Canadian securities legislation. The third round has received conditional acceptance from the TSX Venture Exchange but remains subject to receipt of final acceptance from the TSX Venture Exchange.

Related party participation in the third round

Roman Leydolf, a significant shareholder of the company, participated in the third round, purchasing all 416,000 common shares issued thereunder for aggregate consideration of $312,000. Such participation constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions.

The company relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a), respectively, on the basis that neither the fair market value of the securities issued to the related party nor the consideration paid by the related party exceeded 25 per cent of the company's market capitalization.

As previously disclosed, the company closed the third round within 21 days of announcing the related party transaction and, accordingly, did not file a material change report in respect of the related party transaction at least 21 days before closing. The company considered this reasonable in the circumstances in order to complete the third round in an expeditious manner.

The third round was unanimously approved by the company's board of directors.

About Principal Technologies Inc.

Principal Technologies is a Canadian-based healthcare technologies acquisition company. The company is engaged in building a global portfolio of profitable health care technology companies with a focus on those with global distribution potential that have intellectual property capable of enhancing medical treatment quality, cost-efficiency, optimization of the patient pathway and implementation of point-of-care technologies.

We seek Safe Harbor.