Mr. Bill Panagiotakopoulos reports

SAFE SUPPLY STREAMING CO LTD. ANNOUNCES CLOSING OF ACQUISITION OF DRUG LAB 118 LTD

Safe Supply Streaming Co. Ltd. has closed its previously announced acquisition of 100 per cent of the issued and outstanding shares of Drug Lab 118 Ltd. (Drug Lab U.S.), the subsidiary of DrugLab118 Ltd., in an all-share transaction. The acquisition demonstrates Safe Supply's growth strategy and commitment, underscoring the company's ability to execute strategic M&A (merger and acquisition) transactions using its shares as currency.

The addition of Drug Lab U.S.'s proprietary harm reduction test strips strengthens Safe Supply's portfolio of innovative technologies to reach fast-growing North American markets. This advances Safe Supply's goal to become a leader in the rapidly expanding harm reduction market.

Under the terms of a share purchase agreement dated Nov. 1, 2024, between Safe Supply, Drug Lab U.S. and Drug Lab Parent, Safe Supply issued 10 million common shares at a deemed price of five cents per share to Drug Lab Parent as consideration. These shares are subject to resale restrictions, with one-third of the shares becoming tradeable at each of the four-, eight- and 12-month anniversaries of the closing date. Additionally, Safe Supply issued one million common shares at five cents per share as a finder's fee to an arm's-length third party facilitator.

As part of this acquisition Safe Supply is pleased to add Seymour Paul Ferreira, executive director of Drug Lab Parent, to its board of directors. Mr. Ferreira brings a wealth of experience in the health-tech space, making him an invaluable addition to the board.

Bill Panagiotakopoulos, chief executive officer of Safe Supply, commented, "This acquisition demonstrates our team's ability to execute strategic M&A transactions efficiently, leveraging our shares to close deals that significantly enhance our portfolio."

Colin Lyon, CEO of Drug Lab Parent, added, "We are pleased to reach the close of the transaction and continue to advance our growth strategy in North America with Safe Supply."

The global market for drug testing and harm reduction solutions continues to grow, with market research forecasting it to reach $11.83-billion by 2028 at a CAGR (compound annual growth rate) of 5.0 per cent. This acquisition solidifies Safe Supply's position as a key player in this burgeoning industry.

Early warning disclosure

In connection with the acquisition, Drug Lab Parent, a company located in Darlington, U.K., has acquired 10 million common shares. Immediately before the closing of the acquisition, Drug Lab Parent, beneficially owned, or exercised control or direction over, 0 common shares, representing approximately 0 per cent of the issued and outstanding common shares on a non-diluted and partially diluted basis.

Immediately following the closing of the acquisition, Drug Lab Parent beneficially owns, or exercises control or direction over, 10 million common shares, representing approximately 11.13 per cent of the issued and outstanding common shares on a non-diluted and partially diluted basis. Drug Lab Parent acquired these securities for investment purposes and may, from time to time, acquire additional securities of the company or dispose of such securities as Drug Lab Parent may deem appropriate.

For the purpose of National Instrument 62-103 -- The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, a copy of Drug Lab Parent's early warning report may be obtained on the company's SEDAR+ profile or by contacting Colin Lyon at colin.lyon@druglab118.com. Drug Lab Parent's address is 43 Coniscliffe Rd., Darlington, Colo., Durham, DL3 7EH.

About Drug Lab 118 Ltd.

Drug Lab U.S. is a Delaware-incorporated subsidiary of Drug Lab Parent, a U.K.-based leader in forensic drug detection technologies. Drug Lab U.S.'s proprietary test kits are designed to detect a wide range of substances, including narcotics, and are exclusively distributed in North America.

About Safe Supply Streaming Co. Ltd.

Safe Supply, listed on the Canadian Securities Exchange, focuses on acquiring, investing in and developing businesses within the medical, wellness and technology sectors. The company is committed to driving shareholder value by leveraging innovative, technology-driven solutions to address critical health care and wellness needs.

We seek Safe Harbor.