Collingwood, Ontario--(Newsfile Corp. - January 15, 2024) - The Limestone Boat Company Limited (TSXV: BOAT) ("Limestone" or the "Company") — Owner and builder of Limestone Boats - is pleased to announce the execution of a non-binding term sheet today and initial advances with Pathfinder Investments, NB Inc. "Pathfinder", a privately owned New Brunswick investment Company, that is expected to provide up to $5 million of financing in return for a gross revenue royalty right and certain common share purchase warrants to be determined upon negotiation of a definitive agreement (the "Royalty Agreement"). The Royalty Agreement remains subject to the negotiation of a definitive agreement, the approval of the Board of Directors of the Company, and any applicable regulatory approvals including that of the TSX Venture Exchange.

Additional Default Under Convertible Debenture Indenture

The Company also announces that it has provided notice of an additional default under its trust indenture, dated May 14, 2021, between Limestone and TSX Trust Company as trustee (the "Indenture") in connection with the Company's failure to make a required interest payment, in the amount of $1,409,700, which was due under the Indenture on January 2, 2024. As previously disclosed, it is the intention of the Company to convert all of the outstanding principal due under the debentures, plus accrued and unpaid interest into common shares of Limestone at the conversion price of $0.071 which was approved at a meeting of the debenture holders in July 2023.

Business Update

The Company continues to advance the restart of operations in southwest New Brunswick, including the restructuring of its balance sheet, our employee training program at New Brunswick Community College, St. Andrews Campus, ("NBCC"), and retrofitting of the new manufacturing facility in St. Stephen, New Brunswick in which Limestone manufacturing is expected to resume by spring 2024.

On November 27, 2023, the Company onboarded its first wave of 25 employees and commenced with its customized 12-week intensive employee training program at NBCC to ensure they are equipped with the unique boatbuilding skills and industry knowledge required to deliver the quality expected from Limestone. The training program is being delivered by experienced boatbuilders, and vendor partners and will utilize the most up-to-date infusion techniques, equipment, and engine technologies. Limestone intends to run two waves of the training program annually in partnership with NBCC over the next two to three years to meet growth projections, market demand, and facility expansion plans.

With regards to the retrofit of the Company's 33,000 sq. ft. manufacturing facility in St. Stephen, NB, work is progressing on schedule with exterior work completed prior to the winter season as well as the interior demolition. The buildout and installation of equipment by the Company's New Brunswick engineering and construction partners is expected to commence this month.

The Company is also pleased to confirm that exciting upgrades to existing tooling for the L200R / L200CC models, which will improve quality and production efficiencies, along with its NEW L290DC and L200R EV are nearing completion, aligning with the timeline to re-commence serial production by spring 2024.

Throughout the suspension of manufacturing operations, the Company's dealer partners have remained supportive, and there are over a dozen additional dealers that have expressed interest in the Limestone model lineup given current market dynamics, brand following, and Limestone's outboard power configurations.

The Company also announces the withdrawal of its proposed issuance of common shares and common share purchase warrants previously announced on April 12, 2023.

The Limestone board and management would like to once again thank all stakeholders for their continued support of the Company's reorganization. Management and the Board of Directors of Limestone also wish to reaffirm their commitment to enhance shareholder value.

About The Limestone Boat Company Limited

The Limestone Boat Company Limited - owner and builder of Limestone Boats - is publicly traded on the TSX Venture Exchange under the ticker symbol "BOAT". The Company is headquartered in Collingwood, Ontario.

For more information, please contact:

Bill Mitoulas | Investor Relations
800-720-2395
bill@limestoneboats.com

Scott Hanson | CEO of The Limestone Boat Company Limited
800-720-2395
info@limestoneboatcompany.com

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release, and other publicly available documents including the documents referenced herein, constitute forward-looking information or forward-looking statements (collectively, "forward-looking information"). These statements relate to future events or future performance. The use of any of the words "anticipate", "believe", "could" "should", "would", "estimate", "expect", "forecast", "indicate", "intend", "likely", "may", "plan", "potential", "project", "outlook", "seek", "target", "trend" or "will" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of such future events. Examples of such forward-looking information include, without limitation, the timing and ability of the Company to recommence manufacturing operations (if at all); the significance of additional deal interest in the Company's line of products; management's expectations regarding strong dealer support; the proposed conversion of the Company's issued and outstanding debentures into common shares; and the timing for the construction of the new boatbuilding facility. Actual future results may differ materially. The Company is subject to a number of risks relating to integration and go-forward operations, certain of which are more particularly described in the Company's public filings available on SEDAR+ (). The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Many factors could cause actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information. All the forward-looking information made in this press release is qualified by these cautionary statements and other cautionary statements or factors in this press release. There can be no assurance that the actual results or developments will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company. Unless required by applicable securities law, the Company does not intend and does not assume any obligation to update this forward-looking information.

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

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