Mr. Grant Schuetrumpf reports

YANGAROO PROVIDES UPDATE ON REINSTATEMENT OF TRADING AND ANNOUNCES NON-COMPLIANCE WITH ITS TERM LOAN FACILITY

Yangaroo Inc. has provided an update on its reinstatement application with the TSX Venture Exchange and is not in compliance with its term loan facility with the National Bank of Canada (NBC), initially due to the delayed filing of its annual audited financial statements and corresponding management's discussion and analysis for the year ended Dec. 31, 2024, and the filing of its interim unaudited financial statements for the three months ended March 31, 2024, and also as a result of contravention of a financial covenant related to its first fiscal quarter ended March 31, 2024.

Reinstatement application update and chief executive officer and chief financial officer roles

As previously announced, upon the resignation of the company's chief financial officer, Frank Guo, Grant Schuetrumpf, chief executive officer of the company, was appointed interim chief financial officer. As a result of the current lack of the separation of the roles of chief executive officer and chief financial officer roles, the company is not in compliance with exchange Policy 3.1, Section 5.9. Yangaroo is actively working to remedy this situation and anticipates the appointment of a separate chief financial officer in the near term, following which the company will be in compliance with exchange Policy 3.1, which the company expects will allow the exchange to accept the reinstatement to trading of the company's shares.

Non-compliance with term loan

As a result of the review by the exchange of the company's reinstatement application, the company announces its non-compliance with the term loan, which was disclosed in the filings.

Although it was not identified until after March 31, 2024, effective as at March 31, 2024, the company had failed to meet one of two financial covenants of the term loan, being the fixed charge coverage ratio being less than 1.2 times. This has resulted in the reclassification of the term loan from non-current liabilities to current liabilities, leading to a working capital deficiency of $1,758,949. Excluding balance of the term loan, the working capital shortfall is $281,863.

Yangaroo is actively engaged in discussions with NBC to obtain a waiver of the non-compliance by means of an amendment to the terms of the term loan. As a result, management anticipates that a waiver and/or amendment will be obtained.

Mr. Schuetrumpf, chief executive officer of Yangaroo, commented: "We are taking pro-active steps to address the non-compliance and mitigating any impact it has on our business. We remain confident in our operational capabilities and are committed to restoring compliance with our financial covenants."

Despite the current challenges, Yangaroo remains focused on its long-term strategy and growth objectives. The company expects that the cash flow generated from operating activities in the remaining months of 2024 will be sufficient to cover operating expenses and support continuing business operations.

The company will provide further updates on the reinstatement application, term loan, and appointment of a chief financial officer, as they become available.

About Yangaroo Inc.

Yangaroo is a technology provider in the media and entertainment industry, offering a cloud-based software platform for the management and distribution of digital media content.

We seek Safe Harbor.