Mr. Maximilian Justus reports

GROUNDED PEOPLE CLARIFIES PRESS RELEASE

Grounded People Apparel Inc. has issued this news release as a result of a review by the B.C. Securities Commission to clarify disclosures contained in its news releases dated Aug. 2, 2024, and May 29, 2024, respectively. Specifically, the Aug. 2, 2024, news release disclosed certain sales orders for the period from April to June, 2024, compared with the same period in 2023. The company acknowledges that this method of presenting financial disclosure lacks the balance and context which the company strives to provide in its public disclosure. Accordingly, the company retracts the disclosure contained in the Aug. 2, 2024, news release in its entirety.

In addition, the company notes that the May 29, 2024, news release omitted to disclose that 20,000 stock options were granted to Geoff Balderson, who at the time was the company's chief financial officer, nor to disclose that an additional 60,000 options were granted to other employees of Amalfi Corporate Services (noting that Mr. Balderson did not have beneficial ownership of these 60,000 options).

The company notes that it has also filed an amended management's discussion and analysis for the year ended Feb. 29, 2024. The amendments made provide:

• Further disclosure in respect of revenue royalties;
• Updates to results of operations;
• Updates in respect of related-party transactions and key management compensation;
• Subsequent event disclosure.

The company also discloses that the audit committee of the board of directors is currently composed of: Joel Shacker (chair), Nima Bahrami and Maxamillian Justus (who is non-independent, as he is also chief executive officer of the company).

The company notes also that, as disclosed in its news releases dated June 14, 2024, the company has in place an agreement with Stride Publishing, under which Stride Publishing is to provide services pertaining to investor relations, creation of content, digital advertisement placement and monitoring of digital campaigns in consideration for $550,000. The company wishes to clarify that Stride Publishing underwent a name change to Wealth Campus Inc., and all such prior disclosure referencing Stride Publishing should refer to Wealth Campus.

This retraction and clarification also applies to all channels through which Wealth Campus, in its capacity as investor relations service provider, has distributed any materials regarding the company.

About Grounded People Apparel Inc.

Grounded People, based in Vancouver, B.C., Canada, is an innovative apparel company focused on delivering high-quality products to its customers that are 100 per cent Peta approved vegan. The company is primarily engaged in the business of fair-trade, sustainable and Earth-conscious fashion. The company's initial products, which launched in the fourth quarter of 2021, were its high-top and low-cut canvas sneakers, which are made from sustainable, ethically sourced and produced materials, and are manufactured by fair-trade workers, in a 100-per-cent-vegan manufacturing facility which is located in Brazil.

In addition to its commitment to a fashion industry that reduces waste and environmental impacts, the company aims to create a meaningful positive impact on the world through its LACES campaign. The LACES campaign provides consumers an option to select a specific set of shoelaces to accompany their footwear purchase, the colour of which is associated with one of the charities the company has committed to support, whereby all profits from the sale of shoelaces will be donated correspondingly.

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