Mr. Josh Bruni reports

AMERICAN AIRES CLOSES $4 MILLION OVERSUBSCRIBED PRIVATE PLACEMENT

American Aires Inc. has closed its non-brokered private placement offering of 26,666,663 units of the company at a price of 15 cents per unit for aggregate gross proceeds of approximately $4-million. Each unit comprises one common share in the company and one common share purchase warrant being exercisable into one common share at a price of 25 cents per share for a period of 24 months from closing of the offering, provided that, in the event that the volume weighted average trading price of the common shares on the Canadian Securities Exchange exceeds 40 cents for a period of 10 consecutive trading days, the company will have the right to accelerate the expiry date to 30 days following the date on which the company provides notice thereof to the holders of the warrants.

Josh Bruni, chief executive officer of the company, stated: "We are immensely gratified by the market's strong response to our private placement offering, which was significantly oversubscribed, highlighting the overwhelming interest and confidence in American Aires and our dedicated team. This success not only underscores our investors' belief in our transformative technology but also our dedication to advancing well-being and environmental safety. With this support, we are poised to accelerate our global growth, deepen our scientific research and extend our impact by venturing into new product categories. We are deeply appreciative of this strong endorsement from the investment community and excited about the future that lies ahead."

In connection with the offering, the company paid a cash fee of $47,249.99 to certain arm's-length finders and issued to certain arm's-length finders 289,100 non-transferable finders' warrants, each exercisable to acquire one unit at a price of 15 cents per unit for a period for 24 months from the closing, subject to the accelerated expiry.

The offering is subject to final approval of the Canadian Securities Exchange. The securities issued in connection with the offering are subject to a hold period of four months and one day pursuant to CSE policies and applicable securities laws. The offering price was reserved via price protection filed with the CSE on Jan. 15, 2024.

The combination of the oversubscribed offering, the improved company valuation and the feedback that the company has been receiving from investors over the past several months led the management of the company to believe that the primary objective of the partnership with Huck Project LLC announced on Aug. 28, 2023, has been largely achieved. While the company recognizes that more R&D (research and development) needs to be done to further solidify its scientific leadership in EMF modulation technology, management is satisfied with how the company is positioned today as a life sciences firm. This has been and remains the company's primary objective. The secondary rationale of the Huck outsourcing partnership was to transfer the inventory financing burden over to Huck. The company is pleased to report that this rationale was also successfully addressed through the closing of the $4-million offering. As a result of the above considerations, the company no longer views the Huck partnership necessary and is pleased to announce that it has terminated this partnership with Huck with both companies retaining a friendly relationship and agreeing to all terms and conditions.

Early warning

On Feb. 16, 2024, prior to the closing of the offering, Birchtree Investments Ltd. disposed beneficial ownership of six million common shares. Prior to the disposition, Birchtree held 7,062,366 common shares, representing 11.9 per cent of the issued and outstanding common shares on an undiluted basis (14.6 per cent on a partially diluted basis). Following the disposition, Birchtree held 1,062,366 common shares, representing 1.8 per cent of the issued and outstanding common shares on an undiluted basis (4.8 per cent on a partially diluted basis). As such, Birchtree ceased to be an insider of the company. Birchtree participated in the offering, following which Birchtree held 6,686,953 common shares and 7,505,587 common share purchase warrants of the company. All such warrants contain a restriction on exercise such that Birchtree shall not be permitted to exercise the warrants if it would result in the common shares held by Birchtree exceeding 9.9 per cent of the issued and outstanding common shares. Birchtree currently does not have any plan to acquire or dispose of additional securities of the company. However, Birchtree may acquire additional securities of the company, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position, depending on market conditions, reformulation of plans or other relevant factors.

About American Aires Inc.

American Aires is a Canadian-based nanotechnology company committed to enhancing well-being and environmental safety through science-led innovation, education and advocacy. American Aires has developed proprietary silicon-based microprocessors that reduce the harmful effects of electromagnetic radiation (EMR). American Aires's Lifetune products target EMR emitted by consumer electronic devices such as smart phones, computers, baby monitors and Wi-Fi, including the more powerful and rapidly expanding high-speed 5G networks. Aires is listed on the CSE under the ticker WIFI and on the OTCQB under the symbol AAIRF.

We seek Safe Harbor.