Mr. Adam Ingrao reports

ALSET AI PROVIDES SHAREHOLDER UPDATE, ANNOUNCES UPDATED INVESTOR PRESENTATION AND APPOINTS MITCHELL JACKMAN AS CHIEF FINANCIAL OFFICER

Alset AI Ventures Inc. has provided a shareholder update, has outlined its investment strategy, and has discussed both the posting of an updated investor presentation on its website, and has appointed Mitchell Jackman as chief financial officer of the company, effective immediately.

Alset is building a listed platform intended to provide public-market investors with exposure to private and early stage companies and strategic assets supporting real-world AI adoption. The company is concentrating on four connected areas: AI (artificial intelligence) infrastructure, health care AI, enterprise AI applications and strategic assets that support the broader AI economy.

At June 30, 2026, the company's investment portfolio had a carrying value of $8,824,551, an increase of 164.8 per cent from $3,333,048 at Sept. 30, 2025. Over the same period, shareholders' equity increased 67.9 per cent to $7,365,273. These values are based on the company's unaudited interim financial statements and management estimates. A substantial portion of the increase relates to an unrealized, non-cash revaluation of Lyken.AI, and there is no assurance that any investment will be realized at its carrying value or at all.

"Over the past year, we have worked to make Alset a more connected investment platform built around the commercial requirements of AI," said Adam Ingrao, chief executive officer of Alset AI. "Our goal is to give public-market investors access to selected private companies and strategic assets, while using Alset's capital, relationships and public-company experience to help those businesses reach their next commercial or strategic inflection point. The increase in portfolio carrying value and the recent activity across Lyken and CHIP demonstrate progress, but our focus remains execution: converting qualified opportunities into contracts, supporting disciplined growth and allocating capital on terms intended to create long-term value for shareholders. We look forward to discussing this strategy directly with investors at an investor day in the coming months."

Strategic focus

Alset's model is to identify companies at a definable commercial or strategic inflection point, invest with disciplined position sizing and terms, and support portfolio companies through customer access, infrastructure relationships, commercialization support and public-market discipline. The company will evaluate opportunities to create value through portfolio-company growth, follow-on financings, strategic transactions, distributions or exits, subject in each case to market conditions, available capital, approvals and definitive agreements.

The portfolio currently includes interests or economic exposure relating to Lyken AI Computing Inc., operating as Lyken.AI, the company's 90.1-per-cent-owned cloud compute business; FingerMotion Inc.; CHIP Data Centers Inc.; Chaco Minerals Inc.; Blueprint AI; and Henon Financial Technologies Inc. The portfolio is intended to provide connected exposure across AI infrastructure, enterprise applications and strategic inputs rather than a series of unrelated investments.

Recent corporate and portfolio developments

• Fiscal Q3 2026 results. For the three months ended June 30, 2026, Alset reported income and comprehensive income of $3,606,599, compared with a loss and comprehensive loss of $4,288,289 in the same quarter of the prior year. The result included a $4,109,577 net investment gain that was primarily unrealized and non-cash. Quarterly general expenses decreased 59.6 per cent year over year to $526,405.
• Lyken customer extension. Lyken received purchase orders with an aggregate value of approximately $580,000 that extend cloud compute services for a leading multinational technology and telecommunications company from Aug. 25, 2026, through March 31, 2027. Based on current expected third party hosting, commission and service costs, Alset expects gross margin from the covered services to be approximately 5 per cent before corporate overhead, administrative expenses and other general issuer expenses. This estimate assumes no material change in third party hosting rates, foreign exchange rates or scope of services over the contract period. The customer has no binding obligation to issue additional purchase orders or continue the relationship after March 31, 2027.
• FingerMotion transaction. On Aug. 17, 2026, Alset completed the sale of a 9.9-per-cent interest in Lyken to Nasdaq-listed FingerMotion, a party dealing at arm's length with the company, in exchange for 1,674,480 FingerMotion common shares. The consideration was determined using $500,000 (U.S.) and the applicable Nasdaq closing price. No cash consideration was paid, and Alset retained a 90.1-per-cent controlling interest in Lyken following closing.
• Enterprise-scale compute opportunity. Lyken entered into a non-binding memorandum of understanding with Swarmnet Solutions Pte. Ltd. to explore a potential long-term arrangement involving a 128-node B300 AI compute cluster for inference workloads, together with token optimization services. Any deployment remains subject to funding, due diligence, definitive agreements, approvals, hardware and data-centre availability, credit support, and applicable export-control and sanctions requirements.
• Demand-to-capacity framework. Lyken, FingerMotion and BlueFlare Energy Solutions Inc. entered into a non-binding strategic memorandum of understanding intended to connect Lyken's enterprise AI and high performance computing opportunity pipeline with potential modular behind-the-meter capacity evaluated or developed under FingerMotion's existing relationship with BlueFlare. The memorandum is non-exclusive and does not obligate any party to finance, develop, provide, reserve or purchase capacity, or to enter into any project.
• CHIP operating update. Based on information provided by CHIP's management, CHIP reports five named sites operating or in development across Ontario, Ohio and Texas, comprising approximately four megawatts operating and approximately 26 MW in construction or under signed agreements. CHIP also reports that a global enterprise has committed to the first 20 MW at its next two planned Waterloo-region sites under an executed master services agreement and that its first significant cash flow began in July, 2026. Alset has not independently verified these representations.
• Chaco strategic exposure. During fiscal Q3 2026, Alset acquired a Chaco convertible debenture with a carrying value of approximately $1.31-million in exchange for approximately $1.30-million of loans receivable from Lyken. No cash was received. The debenture bears interest at 3.0 per cent, matures on Dec. 9, 2026, and is convertible at 10 cents per unit, subject to its terms.

Updated investor presentation

The company has posted an updated investor presentation titled "Private AI Growth. Public Market Access" under the investors section of its website. The presentation describes Alset's investment thesis, portfolio construction, leadership team, capital allocation framework and fiscal Q3 2026 balance sheet position.

Appointment of chief financial officer

The company is pleased to announce the appointment of Mitchell Jackman as chief financial officer of the company, effective immediately.

Mr. Jackman has more than 10 years of experience providing management and financial consulting services to public issuers and has served in a variety of management roles for entities across a range of sizes, sectors and corporate structures. He is a founding partner of Cavalry Advisory Group, an accounting and advisory firm focused on financial reporting, regulatory compliance and strategic business advisory services.

Mr. Jackman is a chartered professional accountant and a member of the Chartered Professional Accountants of British Columbia. He has assisted companies in executing their strategic objectives through timely and accurate financial reporting, guidance in connection with going-public transactions, corporate restructurings and investment transactions, and compliance with applicable securities, corporate and regulatory requirements.

Mr. Jackman succeeds Jonathan Yan, who has resigned as chief financial officer of the company. The company thanks Mr. Yan for his contributions and wishes him well in his future endeavours.

Planned investor day

Alset intends to host an investor day in Q1, 2027 to review its strategy, portfolio companies, recent developments and capital allocation priorities, and to provide a management question-and-answer session. The company will announce the date, format and participation details once finalized.

About Lyken.AI

Lyken.AI is Alset AI's cloud compute business and is developing an integrated platform-as-a-service offering spanning managed compute, server and token optimization, secure storage, private low-latency networking, and enterprise deployment support. Lyken's model is intended to extend beyond infrastructure access through related technical co-ordination and support services.

About Alset AI Ventures Inc.

Alset AI is an AI-focused venture investment platform dedicated to sourcing, funding and developing companies across the artificial intelligence value chain. The company seeks to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies.

We seek Safe Harbor.