Mr. David McGorman reports

VENCANNA VENTURES ADOPTS SEMI-ANNUAL FINANCIAL REPORTING AND ANNOUNCES ANNUAL FINANCIAL RESULTS, INTERIM FINANCIAL RESULTS, AND CORPORATE UPDATE FOR THE TWELVE MONTHS AND THREE MONTHS ENDING APRIL 30, 2026

Vencanna Ventures Inc. has provided a summary of its financial results as of April 30, 2026. Selected financial information is outlined below and should be read in conjunction with the company's financial statements and management discussion and analysis (MD&A) for the 12 months and three months ended April 30, 2026, which are available on SEDAR+. All financial measures are expressed in U.S. dollars unless otherwise indicated.

Further, the company announces that it has elected to adopt semi-annual financial reporting (SAR) in reliance on the Coordinated Blanket Order 51-933, Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers, issued by the Canadian Securities Administrators.

The blanket order is a pilot program which permits eligible venture issuers listed on the Canadian Securities Exchange to voluntarily move from quarterly to semi-annual financial reporting. The company confirms that it meets the eligibility criteria under the blanket order. By adopting SAR, the company aims to reduce the administrative and financial burden associated with quarterly reporting.

As a result of this election, the company will file interim financial reports and related MD&A on a semi-annual basis, rather than quarterly. The company's fiscal year-end is April 30, and it will continue to file annual audited financial statements (due within 120 days of April 30) and semi-annual interim financial statements for the period ending Oct. 30. The company will continue to remain subject to timely disclosure requirements and will continue to report all material changes and significant developments in accordance with National Instrument 51-102, Continuous Disclosure Obligations .

On April 30, 2024, the company acquired The Cannavative Group in an all-share transaction. The acquisition of Cannavative changed the company's regulatory and accounting criteria, from a merchant capital firm to a U.S.-based cannabis operating company. Cannavative, collectively with its subsidiaries, Cannavative Farms LLC and Cannavative Extracts LLC, is a licensed manufacturer and distributor of recreational cannabis flower and extracted products that operates exclusively in the state of Nevada, where the legal commercial production and vending of marijuana is permitted by Nevada state law under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).

The company partnered with certain community groups with a focus on the New Jersey cannabis market: TGC New Jersey LLC, CGT New Jersey LLC and October Gold LLC (collectively referred to as the New Jersey entities). As of April 30, 2024, Vencanna has consolidated the New Jersey entities on the company's financial statements.

The company derives the majority of its income from the cannabis industry in certain states in the United States, which is illegal under the federal laws of the United States. However, the company is not aware of any non-compliance by the company or its investees or The Cannavative Group that would be contrary or illegal under applicable state laws.

Nevada

Nevada is a major cannabis market in the U.S. with sales over $723-million for the 2025 calendar year according to the State of Nevada Department of Taxation, though this is down 11 per cent compared with the previous year, partly due to declining tourism (down 7 per cent in 2025 compared with 2024, according to the LVCVA Research Centre) and price compression. However, with 38 million tourists in 2025, the Nevada tourist industry and Las Vegas in particular offer Cannavative significant national brand exposure.

During the past two years, Cannavative has focused on streamlining its operations with an emphasis on manufacturing and distribution to better emphasize its core brands: Resin8 and The Motivator. Significant cost-saving measures have been made, including relocating to a smaller facility, a reduction in head count, improved transportation logistics, lower supply costs and the elimination of redundant administrative costs. These cost-cutting measures have been critical in keeping Cannavative competitively priced; however, challenges remain due to continuing price compression and market consolidation. The company continues to review the viability of the Nevada market.

New Jersey

On Oct. 3, 2025, TGC exited its lease in Cinnaminson, N.J., and the company was released of all obligations regarding the lease. During fiscal 2025, CGT assigned its interest in its Bellmawr retail lease and associated municipal support to the company. October Gold was unsuccessful in securing a retail site. No further activity is anticipated with the New Jersey entities.

The company holds a 95-per-cent interest in Vencanna N.J. LLC, which has been awarded an annual Class 5 retail licence at its retail site situated in Bellmawr, N.J. On Nov. 27, 2025, the company announced that it had entered into a definitive sale agreement with an arm's-length purchaser to sell its 95-per-cent membership interest in Vencanna N.J. Under the terms of the agreement, the total consideration payable by the purchaser to Vencanna for its membership interest in Vencanna N.J. is $1.25-million, plus cash reimbursement of certain deposits amounting to approximately $135,000, plus an earnout of up to $250,000 subject to specified performance conditions. Subsequent to year-end, on May 1, 2026, the $250,000 deposit in escrow was released to the company. The company continues to advance the proposed disposition of its interest in Vencanna N.J. pursuant to the terms of the definitive sale agreement entered into on Nov. 25, 2025.

Upon completion of the Vencanna N.J. transaction, the company intends to add the net proceeds from the Vencanna N.J. transaction to its cash on hand. The company has not allocated the proceeds to any specific use other than for working capital purposes, nor does the company at this time have material commitments or immediate plans related to the deployment of such funds.

Revenues for the period ended April 30, 2026, were $488,879 (2025: $633,704) and the cost of sales was $408,784 (2025: $1,036,568) generating a profit margin for the quarter of 16 per cent (2025: negative 64 per cent). The company recorded a comprehensive loss of $476,932 (2025: $968,295), or nil per common share (2025: loss of one cent per common share), for the period.

During the recent quarter, cost of sales and expenses decreased relative to prior quarters while revenues held steady, as the company continued with its cost-cutting measures. Expenses for the period were $224,182, compared with $71,009 for the period ending April 30, 2025, as a portion of certain expenses relating to amortization and depreciation, development of licences, property tax and utilities, and salaries, benefits, and bonuses in the quarter ended April 30, 2025, were allocated to cost of sales, increasing 2025 cost of sales and reducing expenses for that period.

The net loss for the period was $470,376 (2025: $1,010,202). After adjustments, the company had a comprehensive loss of $476,932 (2025: $968,295).

The company recorded revenues of $1,880,330 for the year ended April 30, 2026, compared with $4,013,046 revenues for the year ended April 30, 2025. The company recorded a comprehensive loss of $1,851,914 (one cent per common share) for the year ended April 30, 2026, as compared with a loss of $4,454,748 (two cents per share) for the year ended April 30, 2025.

Expenses for the year ended April 30, 2026, were $1,287,787 (2025: $2,966,439). The decrease was primarily due to lower transaction-related and operating costs following the company's streamlining initiatives. Amortization expense decreased to $143,358 (2025: $675,582), and interest and accretion on leases decreased to $176,449 (2025: $433,081), primarily as a result of the termination of one lease and the assignment of another lease during the year, which reduced the company's right-of-use assets and related lease liabilities. Marketing and selling expenses decreased to $61,680 (2025: $139,597), office and miscellaneous expenses decreased to $111,818 (2025: $296,820), professional fees decreased to $184,776 (2025: $563,277), and salaries, benefits and bonuses decreased to $488,140 (2025: $756,892).

The company recorded a net loss of $1,843,795 for the year ended April 30, 2026 (2025: $4,533,571), compared with a comprehensive loss of $1,851,914 (2025: $4,454,748). The decrease in net loss was primarily due to lower operating and other expenses in the current year as the prior year included significant non-cash and non-recurring charges, including the write-off of goodwill and intangible assets and the loss on disposal of property. Other comprehensive loss was $8,119 for the year ended April 30, 2026, compared with other comprehensive income of $78,823 in 2025.

About Vencanna Ventures Inc.

On Sept. 24, 2018, the company completed a recapitalization financing, appointed a new management team and board of directors, and commenced trading on the CSE as an investment issuer. The transactions transitioned the company from an oil and gas issuer to a merchant capital firm, and rebranded as Vencanna Ventures.

On April 30, 2024, Vencanna acquired Cannavative, a cultivation and extraction company in the state of Nevada. Cannavative was established in 2016 and began operations in 2017. The acquisition of Cannavative transitioned the company from a merchant capital firm to an operating company. Cannavative operates out of a 7,500-square-foot facility and offers over 100 SKUs (stock-keeping units), spanning a wide range of high-quality concentrate and preroll product offerings.

Vencanna is dedicated to offering investors a diversified, high-growth cannabis investment strategy, with a particular focus in the Unities States. It proposes to achieve this through strategic investments, grassroots developments and acquisitions spanning the cannabis value chain.

We seek Safe Harbor.