Ms. Sage Berryman reports

ALUULA COMPOSITES TO RECRUIT CFO AND EXTENDS MATURITY DATE OF EXISTING $1M LOAN

Aluula Composites Inc. is working closely with Dale Graham, the company's current chief financial officer, to transition to a new CFO who will support the business through its next phase of growth and development. The company will be actively recruiting for a new CFO while Mr. Graham continues in the role. Officially, Mr. Graham will depart on March 31, and he will work with the company to ensure a smooth transition and remain available to the company after this date on a consulting basis.

The company thanks Mr. Graham for his contributions and leadership during his tenure with Aluula as he has been a key member of the team, starting in early 2024, helping mature and stabilize the operations to ensure a strong foundation for future growth.

The company is now initiating the search for its next CFO, who will be a key member of the executive team, instrumental in advancing the company's financial strategy and supporting future growth plans currently under way. Interested and qualified candidates can review the job description found on the careers page of Aluula's website.

Related party loan amendment

The company also announces that it has agreed with the lender to amend the terms of an existing short-term loan agreement to extend the maturity date to Jan. 1, 2027. The company entered into a $1-million short-term loan agreement with 0876991 B.C. Ltd., a related party to the company, on Dec. 29, 2023. The loan bears interest at a rate of 12 per cent per annum. In June, 2024, the parties agreed to amend the loan agreement and extend the repayment date from July 1, 2024, to Jan. 1, 2025. In October, 2024, the parties entered into a second amendment to the loan agreement pursuant to which: (i) $200,000 of the loan was repaid on Jan. 1, 2025, and the due date for repayment of the balance of the loan was extended to Jan. 1, 2026; and (ii) the company was affirmed as the debtor due to the corporate amalgamation with its wholly owned subsidiary on Aug. 1, 2024 (please see the news release dated Sept. 4, 2024). In January of this year, the parties agreed to amend the terms of the loan agreement to return to the original $1-million total loan and extend the maturity to Jan. 1, 2027. All other terms of the loan agreement remain unchanged.

As the lender is a related party to the company, the amendment to the loan agreement constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and the company is relying on the exemptions contained in sections 5.5(a) and 5.7(1)(a), respectively, from the formal valuation and minority shareholder approval requirements in that instrument.

About Aluula Composites Inc.

Aluula is an ultralight, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear, as well as commercial and industrial equipment. Proudly owned and manufactured on the Canadian West Coast, Aluula's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. Aluula's materials are known for their unique construction capabilities and their ability to make products lighter, stronger and more sustainable.

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