Mr. Ben Lui reports

YORKTON EQUITY GROUP INC. ANNOUNCES ACQUISITION OF PROPERTY MANAGEMENT COMPANY FROM RELATED PARTIES

Yorkton Equity Group Inc. has entered into a share purchase agreement dated July 1, 2026, to acquire 100 per cent of the issued and outstanding Class A common shares of Lui International Group Inc., operating as Yorkton Management (YM), from Ben Lui, the chief executive officer, director and majority shareholder of the company, and a close family member. The company expects to issue to the vendors approximately 4,666,666 common shares of the company at a deemed price of 15 cents per common share, representing expected total consideration of approximately $700,000, subject to postclosing adjustments to be determined in accordance with the share purchase agreement and to be settled on or before Dec. 31, 2026. Following the transaction, it is expected that Mr. Lui will hold approximately 72.37 per cent of the company's outstanding common shares on a non-diluted basis. The closing price of the company's common shares on June 30, 2026, was 15 cents per common share. No finders' fees were paid in connection with the transaction.

YM currently provides property management services primarily to the company's investment properties located in Edmonton, Alta. The purpose of the transaction is to vertically integrate these services within the company's operations, providing more direct control over property management and allowing the company to retain any profits generated by these services. The transaction is also expected to support more efficient property management as the company expands its multifamily rental property portfolio.

Closing of the transaction is subject to the satisfaction of customary closing conditions, including receipt of all applicable regulatory approvals and acceptance by the TSX Venture Exchange.

Bill Smith, chairman of the board of directors of Yorkton, stated: "We believe this acquisition is an important step in Yorkton's strategy to fully integrate key operational functions and strengthen control over our multifamily portfolio. By bringing property management in-house, the company expects to increase its net profit, enhance operational efficiency and support the growth of its multifamily investment portfolio."

Related party transaction

The company and Mr. Lui are related parties as Mr. Lui is the CEO, director and majority shareholder of Yorkton. As a result, this transaction is considered a related party transaction pursuant to the policies of the TSX Venture Exchange and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The board of directors, excluding Mr. Lui, has reviewed and approved the transaction. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. In particular, the company has determined that the exemption set out in paragraph (b) in Section 5.5 of MI 61-101 is applicable since the company is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange. In addition, regarding the minority shareholder approval exemption, the independent directors have determined that the exemption set out in paragraph (1)(a) in Section 5.7 of MI 61-101 is applicable in that the fair market value of the YM shares and the fair market value of the consideration does not exceed 25 per cent of the company's market capitalization.

About Yorkton Equity Group Inc.

Yorkton is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth and the active management of multifamily rental properties with significant upside potential. The company's current geographical focus is in Alberta and British Columbia with diversified and growing economies, and strong population in-migration. Yorkton's business objectives are to achieve growing net operating income (NOI) and asset values in its multifamily rental property portfolio in strategic markets across Western Canada.

The management team at Yorkton has well over 35 years of prior real estate experience in acquiring and managing rental assets.

We seek Safe Harbor.