Toronto, Ontario--(Newsfile Corp. - July 29, 2026) - Paragon Advanced Labs Inc. (TSXV: PALS) ("Paragon" or the "Company") is pleased to announce that, further to its news release dated June 12, 2026, the Company has settled USD$2,353,000 (representing the total amount outstanding of the 2023 USD$2,000,000 face value vendor loan, as previously announced) with The Paul & Joyce Huet Family Trust (the "Creditor") an entity related to mining CEO and investor Paul Andre Huet, pursuant to a debt settlement transaction (the "Debt Settlement").

Under the Debt Settlement, the Company has settled US$2,353,000 or CAD$3,281,847 of outstanding indebtedness through the issuance of 1,356,135 common shares of the Company (the "Settlement Shares") at a deemed price of C$2.42 per share. The settlement amount reflects the original principal amount of USD$2,000,000, less a prepayment of USD$147,000, plus penalty amount in lieu of interest of USD$500,000, representing an imputed 8.33% simple rate of interest over the term of the note.

The settled indebtedness comprised the balance of the secured promissory note issued in connection with the Company's acquisition of Paragon Geochemical, and the Debt Settlement constitutes full and final satisfaction of all amounts owing to the Creditor. With completion of the Debt Settlement, the Company has extinguished the last remaining acquisition-related secured debt on its balance sheet.

The Company further confirms that the Creditor is an arm's-length party to the Company and is not a related party of the Company within the meaning of applicable securities laws or the policies of the TSX Venture Exchange (the "Exchange"). Accordingly, the Debt Settlement does not constitute a related party transaction.

"I have spent my career in the mining sector, and I believe PhotonAssay represents a genuine step-change in assay technology," said Huet. "Electing to convert this debt into equity reflects my conviction in Paragon's trajectory — I would rather participate in the Company's growth as a shareholder."

The Debt Settlement has received conditional acceptance of the Exchange. The Settlement Shares are subject to a statutory hold period expiring four months and one day from the date of issuance, and to applicable resale restrictions under United States securities laws.

Equity Incentive Grants

The Company also announces that, further to shareholder approval of its Omnibus Equity Incentive Compensation Plan at the Company's annual general meeting held on June 24, 2026, the Board of Directors has formally granted an aggregate of 418,440 restricted share units ("RSUs") and 405,000 deferred share units ("DSUs") to certain directors, officers, employees and consultants of the Company, pursuant to the Omnibus Equity Incentive Compensation Plan.

The grants were approved by the Board in recognition of the recipients' ongoing services and contributions to the Company and are subject to the terms and conditions of the Omnibus Equity Incentive Compensation Plan and applicable award agreements. The DSUs granted to directors and officers vest in three equal tranches, with one-third vesting on the date of grant and the remaining two-thirds vesting over the following two years, subject in each case to confirmation by the independent members of the Board that specified corporate performance objectives have been met. These objectives are tied to strengthening the Company's financial position and to the achievement of sustainable cash generation from its core laboratory operations, aligning a majority of the award with the delivery of the Company's near-term strategic priorities.

The Company notes that these awards had previously been contemplated in the Company's fully diluted capitalization disclosed in investor and marketing materials. Accordingly, the formal grant of such awards does not result in dilution beyond the fully diluted figures previously communicated by the Company.

The grants remain subject to the policies of the TSX Venture Exchange.

About Paragon Advanced Labs Inc.

Paragon Advanced Labs Inc. provides innovative analytical technologies to the global mining industry. By embracing new technology, the Company is addressing critical capacity bottlenecks in mineral assaying through the deployment of PhotonAssay™ technology and complementary analytical solutions. The Company delivers faster, more accurate, and cost-effective mineral analysis for mining operators worldwide.

ON BEHALF OF THE BOARD OF DIRECTORS OF PARAGON ADVANCED LABS INC.

Peter Shippen
Chief Executive Officer and Director
Paragon Advanced Labs Inc.

Forward-looking Statements

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on expectations, estimates and projections as of the date of this news release and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this release may include, but are not limited to, statements regarding the Company's plans, business objectives, strategy, financial or operational performance, exploration or development programs, future market conditions, and other future events or conditions.

Forward-looking statements are often identified by words such as "anticipate," "believe," "expect," "estimate," "intend," "may," "plan," "project," "should," "will," and similar expressions. These statements are not guarantees of future performance and involve risks and uncertainties, including those described in the Company's public filings available under its profile on SEDAR+. Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.

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

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