Happy Belly's Heal Wellness Multi-Unit Franchise Agreement in Alberta Increased from 5 Units to 10 Units

Toronto, Ontario--(Newsfile Corp. - May 10, 2024) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: VGANF) ("Happy Belly" or the "Company"), a leading consolidator of emerging food brands, is pleased to announce the upsizing of an existing multi-unit franchise agreement for Heal Wellness ("Heal"), a fresh smoothie bowl, acai bowls, smoothies quick serve restaurant.

We are pleased to announce that our multi-unit agreement that was to see five (5) Heal Wellness stores being opened across major cities in Alberta has now been upsized to ten (10) units.

"We are witnessing organic support from our current franchisees, many of whom are eager to expand into multi-unit ownership. It is very positive when those franchisees who already own multiple units' express interest in acquiring more. Today exemplifies this perfectly. We're thrilled that our current multi-unit franchisee for Heal in Alberta has requested to double their number of committed units from 5 to 10. This is the true meaning of franchisee support for a brand and is a reflection of Happy Belly's commitment to service and support its franchisees once they become part of the Happy Belly family," said Sean Black, Chief Investment Officer of Happy Belly.

"Our accelerated franchise program has been delivering results on a consistent and repeatable basis. Heal offers a proven business model that has demonstrated success in various markets. This model provides franchisees with a blueprint for success while reducing the risks associated with entrepreneurship. Our franchise program empowers franchisees to achieve their business goals while exemplifying the integrity and reputation of the brand."

Heal Wellness

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"Our approach has always been to focus on the development and growth of emerging brands in the food sector. Heal Wellness was an accretive acquisition by Happy Belly, and it is anticipated that we will continue to deliver new franchised locations that will drive both the top line and bottom line of the company."

Additional Updates:
The Company announces that it has granted 1,000,000 performance stock options (the "Options") to Gary Fung, CFO of the Company, in accordance with its Option plan. The Options are exercisable at $0.40 per common share (the "Shares") for a period of two years from the date of grant and are subject to the following vesting triggers, aligning the performance Options to the board performance warrants earning out at $2.00/Share of Happy Belly Shares, all expiring by June 2026.

* The exercise trigger equals the closing market price of the Company's Shares on the Canadian Securities Exchange (the "Exchange").

The Company further announces that, subject to regulatory approval, it intends to issue up to 96,153 Shares at a deemed price of $0.39 per Share, being the 10-day VWAP of the Company's Shares on the Exchange, to its former CFO, Dean Callaway, at his request, as payment of his severance in lieu of cash, showing his commitment to the Company and its future. The Shares will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

For franchising inquiries please see www.happybellyfg.com/franchise-with-us/ or contact us at hello@happybellyfg.com.

About Heal Wellness

Heal Wellness was created out of a passion and mission to serve quick, fresh wellness foods that power and support a busy, active lifestyle. Currently, we are pleased to offer a wide variety of smoothie bowls, smoothies, and delicious breakfast waffles. We are proud to highlight that every superfood ingredient in the Heal Wellness menu is carefully selected with the intention of fueling the body with a reduced ecological.

About Happy Belly Food Group
Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: VGANF) ("Happy Belly" or the "Company") is a leading consolidator of emerging food brands.

Happy Belly

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Happy Belly Food Group
Shawn Moniz
Chief Executive Officer

FOR FURTHER INFORMATION, PLEASE VISIT:

www: www.happybellyfg.com or email hello@happybellyfg.com
If you wish to contact us please call: (604) 737-2303

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, and include the future performance of Happy Belly and her subsidiaries. Forward-Looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for Happy Belly described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedarplus.ca.

The securities to be issued pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release will not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

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