ALUULA Announces Option Repricing and Option Grant

Victoria, British Columbia--(Newsfile Corp. - May 15, 2025) - ALUULA Composites Inc. (TSXV: AUUA) ("ALUULA" or the "Company") announces that its board of directors has approved amending the exercise price of a total of 188,601 outstanding stock options held by non-insiders of the Company, with previous exercise prices ranging from $3.00 to $2.00, to $0.61 per common share. The Company proposed the reprice to support retention of valued team members by better aligning the exercise price with the current market price, which experienced a decline following the completion of the Company's rights offering in the first quarter of 2025. Repricing these non-insider options remains subject to approval of the TSX Venture Exchange.

The Company also announces the grant of 1,504,760 stock options, pursuant to the Company's share option plan, to certain directors, officers, and consultants to purchase up to 1,504,760 common shares of the Company. These options are exercisable at a price of $0.61 per common share until May 13, 2030. 533,725 of these options vested on grant, and the remaining options vest over a three-year period.

Stock options form a critical element of the Company's compensation policy and ALUULA wants to ensure adequate incentive is in place to attract and retain team members that will support the Company in meeting its growth objectives.

About ALUULA Composites

ALUULA is an ultra-light, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear. Proudly owned and manufactured on the Canadian west coast, ALUULA's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA's materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.

aluula.com | TSXV: AUUA

TSX Venture Exchange

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements, including, but not limited to: the TSXV's approval of the non-insider option repricing. These statements are based on assumptions subject to significant risks and uncertainties as described in the Company's management discussion and analysis. Because of these risks and uncertainties and as a result of a variety of factors, including the timing and receipt of all applicable regulatory, corporate third-party approvals, the actual results, expectations, achievements, or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

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