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Pontus Protein Ltd. Capital/Financing Update 2021

Nov 5, 2021

47670_rns_2021-11-05_6f733412-b26e-4565-b4c1-fedd26f9afe2.pdf

Capital/Financing Update

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51-102F3 MATERIAL CHANGE REPORT

Item 1 Name and Address of Company

Pontus Protein Ltd. (the “ Company ”) 17686 - 66A Avenue Surrey, British Columbia, V3S 2A7

Item 2 Date of Material Change

November 3, 2021.

Item 3 News Release

The news release dated November 4, 2021 was disseminated via Cision.

Item 4 Summary of Material Change

The Company announced that it has completed the second tranche of its previously announced $5,000,000 non-brokered private placement (the " Offering "), as described in its news releases dated September 14, 2021, September 23, 2021 and October 25, 2021, pursuant to which it has issued an aggregate of 3,068,750 units (each, a " Unit ") at a price of $0.16 per Unit for aggregate gross proceeds of $491,000 (the " Second Tranche "). The Company has raised total aggregate proceeds of $1,455,600 from the closings of the first and second tranches of the Offering.

Each Unit consists of one common share in the capital of the Company (each, a " Share ") and one Share purchase warrant (each, a " Warrant "), with each Warrant entitling the holder thereof to acquire one additional Share (each, a " Warrant Share ") at a price of $0.30 per Warrant Share for a period of 2 years from the closing date.

The proceeds from the Offering, including those from the Second Tranche, are expected to be used for general working capital as well as to further fund the construction of the Company's Surrey facility.

All securities issued in connection with the closing of the Second Tranche are subject to a statutory hold period expiring on March 4, 2022. No finder's fees were paid in connection with the closing of the Second Tranche.

Item 5 Full Description of Material Change.

  • 5.1 Full Description of Material Change

See Item 4 above for a full description of the material change.

  • 5.2 Disclosure for Restructuring Transactions

Not Applicable.

  • 2 -

Item 6 Reliance on subsection 7.1(2) or (3) of National Instrument 51-102

Not Applicable.

Item 7 Omitted Information

None

Item 8 Executive Officer

Connor Yuen, Chief Executive Officer Telephone: 1 (778) 999-3353

Item 9 Date of Report

November 5, 2021.