Mr. Ian Atacan reports

PHARMACIELO ANNOUNCES THE ISSUANCE OF INTEREST SHARES AND UPDATE ON INSIDER BRIDGE FINANCING

Pharmacielo Ltd. has issued 11,145,999 common shares of Pharmacielo at an effective price of eight cents per interest share, in satisfaction of an aggregate of $891,681.85 of semi-annual interest payable to holders of the company's 11 per cent secured debentures.

The effective price of the interest shares was determined by dividing the cash interest otherwise payable by the number of shares issuable under each debenture, in accordance with the terms of the debentures and TSX Venture Exchange Policy 4.3, Section 3.3. The interest shares are subject to the balance, if any, of the four-month statutory hold period.

The issuance of interest shares to L5 Capital Inc., Marc Lustig, William Petron and Ian Atacan constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the transaction does not exceed 25 per cent of the company's market capitalization.

Insider bridge financing

Since February, 2024, the company's working capital requirements have been supported primarily through a secured insider bridge loan facility provided by Mr. Lustig and certain insiders of the company, bearing interest at 11 per cent per annum. To date, Pharmacielo has drawn approximately $2.5-million of the $3.0-million commitment.

The company believes this continued financial support reflects insider confidence in Pharmacielo's long-term strategy and continuing operations. The bridge financing has assisted the company in maintaining operations while continuing to focus on cost reductions, operational efficiencies and commercial development initiatives.

About Pharmacielo Ltd.

Pharmacielo is a global company, headquartered in Canada, with a focus on ethical and sustainable cultivating, processing and supply of all natural, pharmaceutical-grade medicinal, and commercial dried cannabis flower and cannabis products to large channel distributors.

We seek Safe Harbor.