Vancouver, British Columbia – July 11, 2023 – Principal Technologies Inc. (the “Company”) (TSXV:
PTEC.P), is pleased to announce that, subject to regulatory approval, it has granted incentive stock options to certain directors, officers and consultants of the Company to acquire an aggregate of 1,000,000 common shares in the capital of the Company at an exercise price of $0.12 (the “Options”) in accordance with its 10% rolling Incentive Stock Option Plan (the “Option Plan”). The Options granted to various directors, officers and consultants vest immediately and are exercisable for a 10-year term, expiring July 11, 2033. The 200,000 Options granted to Jason Frame, an investor relations consultant, will vest 25% each quarter over a 12-month period, and are exercisable for a 10-year term, expiring July 11, 2033. The Options are subject to the terms and conditions of the Option Plan and the policies of the TSX Venture Exchange (the “Exchange“).

The Company also announces that the Board of Directors has adopted a 10% fixed stock option plan (the
“Fixed Plan”). The Fixed Plan is subject to approval by the Exchange and is in addition to the Company’s
current Option Plan.

Under the Fixed Plan, the Company may grant options to acquire up to an aggregate of approximately
2,287,546 common shares of the Company, representing 10% of the issued and outstanding common shares of the Company as at the date of the Fixed Plan, subject to the terms and conditions prescribed by the Exchange and applicable securities laws. Subject to confirmation from the Exchange, the maximum number f options that may be issued pursuant to the Fixed Plan is 2,287,546.

The Company also wishes to announce that it has granted 2,125,000 conditional stock options under the Fixed Plan (the “Conditional Options”) to an officer of the Company at an exercise price of $0.12 per share. The Conditional Options vest immediately and are exercisable for a 10-year term expiring July 10, 2033. Conditional Options granted under the Fixed Plan may not be exercised until Exchange approval has been received.

ON BEHALF OF THE BOARD

Jerry Trent, Chief Executive Officer
Principal Technologies Inc.

For investor inquiries or further information, please contact:
Office@principal-technologies.com

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:

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of the Company in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause the Company’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking information or statements except as may be required.