Victoria, British Columbia--(Newsfile Corp. - July 12, 2023) - ALUULA Composites Inc. (TSXV: AUUA) ("ALUULA"or the "Company") is pleased to announce that it has closed its previously announced bought deal brokered private placement, led by Haywood Securities Inc. ("Haywood"), consisting of a total of 24,489,953 units (the "Units"), including partial exercise of the over-allotment option, at a price of $0.15 per Unit (the "Issue Price") for aggregate gross proceeds to the Company of $3,673,492.95 (the "Offering"). Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.25 per share for a period of 24 months from the closing of the Offering.

In connection with the Offering, the Company: (i) paid Haywood a cash commission of $220,409.58; (ii) issued to Haywood 1,469,397 broker warrants, exercisable to acquire Units at the Issue Price; and (iii) paid Haywood a corporate finance fee comprised of $45,918.40 in cash and $137,756.25 payable in Units (being 918,375 Units).

The Company expects to use the net proceeds of the Offering to expand production capacity (including a shift to wider industry standard 1.5 meter output widths), repay outstanding bank debt, make modest increases to its workforce and expand its facilities.

The securities issued in connection with the Offering are subject to a hold period of four months, expiring on November 13, 2023, in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws, and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.

No securities regulatory authority has either approved or disapproved of the contents of this news release.

About ALUULA

ALUULA Composites Inc. (TSXV: AUUA) was created with a vision to find solutions for real world challenges not being met by traditional composite manufacturers. Its goal is to create the next generation of lighter, stronger soft composites for a broad range of large vertical markets.

Using a patented and proprietary approach to increase fiber strength at the molecular level, ALUULA core weaves and outer facing films are fused without the use of heavy glues. This remarkable process allows ALUULA to create materials with a previously unachievable strength to weight ratio. Fusion at the molecular level also enables ALUULA to develop composites that are recycle-ready. The company continues to add patented innovation to its product offerings and specialized core competencies to its growing team.

Partnering with world-class brands, ALUULA Composites is quickly becoming the top choice for innovators seeking to set a new standard of high-performance.

ALUULA is a Canadian company founded by a team of highly experienced chemists and engineers who share a common passion for exploring and enjoying the outdoors. They have created a new realm in dimensionally stabilized multilayer materials that are the result of an innovative bonding of co-polymer layers, creating composites which are extremely light, highly tear and stretch resistant, and are easily fabricated into a multitude of products across a wide range of markets. ALUULA Composites strives to develop products and processes that are not hazardous to our environment and minimize the footprint we leave behind.

Learn more about ALUULA Composites at: .

Contact:

Mr. Peter Dorrius, CFO and Corporate Secretary
Email: cfo@aluula.com

Investor Relations General Contact
Email: investors@aluula.com

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. These statements are based upon assumptions that are subject to significant risks and uncertainties. Forward-looking statements in this news release include, but are not limited to the anticipated use of funds. Because of these risks and uncertainties and as a result of a variety of factors, 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. Forward- looking statements herein are made as of the date hereof, and 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. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information.

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