Vancouver, British Columbia--(Newsfile Corp. - January 6, 2026) - Purebread Brands Inc. (TSXV: BRED) ("Purebread" or the "Company") is pleased to announce that it has agreed to issue an aggregate of 532,322 common shares of the Company (the "Settlement Shares") to an arm's length creditor of the Company (the "Creditor") at a price of $1.25 per Settlement Share, in full and final settlement of accrued and outstanding indebtedness in the aggregate amount of US$484,000 (C$665,403) (the "Debt Settlement"). Immediately prior to the Debt Settlement, the Company had 27,566,263 common shares of the Company outstanding and following closing of the Debt Settlement, the Company anticipates that there will be 28,098,585 common shares of the Company outstanding.

The Debt Settlement is subject to TSX Venture Exchange approval. All securities issued in connection with the Debt Settlement are subject to a four-month hold period from the date of issuance in accordance with applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

The Settlement Shares are being issued in satisfaction of indebtedness owing to the Creditor pursuant to a debenture of the Company (the "Debenture") originally issued on December 22, 2023 in the principal amount of US$400,000 (C$562,520). The Debenture accrued interest at a rate of 10.5% per annum and matured two years from the date of issuance on December 22, 2025. Through inadvertence, the issuance of the Debenture was not announced by the Company at the time of issuance.

About Purebread Brands Inc.:

Purebread Brands Inc. is a leader in fast-casual cafe / bakeries in British Columbia, driving retail expansion in vibrant communities across Canada and beyond. Purebread is committed to crafting exceptional food experiences and making a positive impact on the communities it serves.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things: the Company's ability to obtain TSX Venture Exchange approval in connection with the Debt Settlement, and the anticipated timing thereof.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, the risks that: the Company's is unable to obtain TSX Venture Exchange approval in connection with the Debt Settlement, or that the Company will be unable to do so on the timeline anticipated.

In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that TSX Venture Exchange approval for the Debt Settlement will be obtained on the timeline anticipated by management.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

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