Mr. Michael Gaffney reports

LEONOVUS BUSINESS UPDATE: SETTLEMENT-CORE MIGRATION COMPLETE, PATENTS FILED, EXCHANGE PLATFORM SUBSTANTIALLY BUILT

LeoNovus Inc. today provided a business update on its development of a new kind of regulated exchange in Canada, purpose-built for physically backed gold and silver. The exchange's records of cash and metal entitlements have completed their initial migration onto the production settlement core; patent applications have been filed in the United States covering the inventions underlying the platform; and the software platform is substantially built, with remaining work concentrated in final testing, integrations and prelaunch hardening. The operating name of the new exchange will be announced in due course.

Highlights

• Settlement-core migration complete -- Customer cash and metal entitlement records now run on the production permissioned distributed-ledger settlement core, supporting atomic, intra-second settlement between the cash and metal legs of every trade.
• Patent applications filed with the USPTO -- Securing priority for the platform's settlement, matching and risk-management inventions. The mechanisms are implemented and demonstrable in working software; no implementation detail is disclosed at this time.
• Platform substantially built -- Matching engine, settlement ledger, custody-binding, surveillance and reporting are operational in working software; remaining work is final testing, integrations and prelaunch hardening.
• Regulatory approvals outstanding -- The new exchange is in the process of applying for OSC marketplace recognition (ATS Type I) and CIRO (Canadian Investment Regulatory Organization) investment dealer membership. Neither has been obtained; the new exchange cannot operate as a public marketplace in Canada until they are granted. Launch timing is subject to regulatory review and approval.

Working capital loan from officer and director

The company has borrowed $125,000 (the loan) from an officer and director of the company. The loan is unsecured, has an interest rate of 12 per cent per annum payable on the due date and is due on Dec. 31, 2026. No finder's fee, bonus securities, or other compensation is payable to the lender or any third party in connection with the loan. The company intends to repay the loan through future financing activities.

We seek Safe Harbor.