Mr. Steve Harpur reports

PROGRESSIVE PLANET ANNOUNCES ANNUAL FINANCIAL RESULTS

After a year of rebuilding, Progressive Planet Solutions Inc. has released its audited financial results for the year ending April 30, 2024.

"Fiscal 2024 was a year of implementing cost controls while preparing for long-term growth. Our year-over-year increase in gross margin, coupled with significant reductions in selling and administrative expenses, are a strong testament to our desire to deliver long-term shareholder value through positive cash flow from operations," stated Steve Harpur, chief executive officer. "While we experienced a small net loss for the year, this includes significant non-cash expenses, such as depreciation, stock option issuances and deferred income tax. The changes made in fiscal 2024 have set us up for a strong fiscal 2025."

Fiscal 2024 highlights versus 2023:

• Achieved EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $1,355,000 versus $308,000;
• Revenue increased to $19.63-million from $19.54-million;
• Operating cash flow increased to $2.57-million from $1.61-million;
• Gross margin (2) increased to 30.6 per cent from 26.2 per cent;
• Selling expenses decreased to $1.32-million from $1.93-million;
• Research and development costs decreased to $531,000 from $875,000;
• Interest costs decreased to $620,000 from $680,000;
• Net loss decreased to $393,000 from $1,164,000;
• Long-term debt reduced to $6.44-million from $6.75-million;
• Cash on hand increased to $1.69-million from $705,000.

Subsequent to fiscal 2024:

• The Bank of Canada lowered prime twice, lowering the company's interest rate on its only significant source of debt, a floating rate, long-term debt facility with Bank of Montreal by 50 basis points;
• Announced and initiated a share buyback;
• Shared 28-day compressive strength results for its PozPyro alternative cement;
• Invested in technology to record and display plant production output in real time to plant operators and management, an industry practice known to increase productivity in industrial mineral processing;
• Initiated engineering for expansion of grinding and packaging operations;
• Commenced study to reduce consumption of natural gas for mineral drying.

In addition to financial highlights, fiscal 2024 saw investment in new equipment and depreciation of existing equipment. The company recorded $912,200 in depreciation expenses and invested a net amount of $213,600 (reflecting new equipment purchased less the sale of used equipment). When Progressive Planet acquired Absorbent Products in February, 2022, for $16.3-million, none of the purchase price was recorded as goodwill. With the majority of the purchase price assigned to property, plant and equipment, Progressive Planet has reported significant depreciation annually since the acquisition.

An additional non-cash expense of $435,000 was incurred for the issuance of deep out-of-the-money options in fiscal 2024.

(1) EBITDA is a non-IFRS (international financial reporting standards) financial measure. This ratio expresses earnings before interest, income taxes, depreciation and amortization. It assists in explaining the company's results from period to period. There is no directly comparable IFRS measure.

(2) Gross margin is a non-IFRS financial measure. This ratio expresses gross profit as a percentage of revenue for a given period. It assists in explaining the company's results from period to period and measuring profitability. This ratio is calculated by dividing gross profit for a period by the corresponding revenue for the period. There is no directly comparable IFRS measure.

About Progressive Planet Solutions Inc.

Progressive Planet, a manufacturing company operating out of Kamloops, B.C., is reimagining what is possible when the planet's health is prioritized. The company's expertise lies in developing products using its owned mineral assets and recycled materials to create Products for a Healthy Planet.

Its C-Quester Centre of Sustainable Solutions is proudly disrupting the cement, agricultural and animal care industries. Its product lines include patented and patent-pending products, which are developed with the express intent of promoting a healthy planet using naturally occurring minerals and the urban mining of recycled materials. The company's products are found in over 10,000 retail stores across North America.

We seek Safe Harbor.