Terrace Energy Corp. (TSXV : TZR) entered into a letter of interest to acquire Salvation Nutraceuticals Inc on September 1, 2022. Majority of the board of directors of Terrace Energy Corp will resign and new directors, including Ryan Lewis and Fred Brown, will be appointed to the board.

Brydon Cotter will serve as Terrace Energy Corp President and Ryan Lewis will also serve as Terrace Energy Corp Chief Executive Officer. The proceeds of the private placement conducted by Terrace Energy Corp will be used to cover the anticipated costs of the Acquisition. The Acquisition will be subject to a number of conditions including, but not limited to: i) receipt of all required director, shareholder, regulatory, Exchange and third party approvals, and compliance with all regulatory requirements and conditions; ii) the representations and warranties of the other party in the definitive agreement to be entered into in respect of the Acquisition and in various ancillary agreements remaining accurate at and as of the closing of the Acquisition, and no material adverse changes in the business of the other party shall have occurred; iii) any and all wholly-owned or partially owned subsidiaries of the Company shall have been dissolved and no longer in existence on or before closing of the Acquisition; iv) Terrace Energy shall have, immediately prior to closing of the Acquisition, not less than CAD 250,000 in cash in Canadian funds on hand and no material liabilities, obligations, financial commitments or contracts;v) the parties acknowledge that, subject to the requirements of the Exchange, including applicable escrow policies, Terrace Energy will complete a private placement of a minimum of 1,500,000 and a maximum of 2,000,000 common shares at a price of $0.15 per share, for gross proceeds of between CAD 225,000 and CAD 300,000; vi) Salvation must complete a private placement of not less than CAD 2,000,000 at a price per share acceptable to Terrace; and vii) Salvation must complete an additional financing through the issuance of subscription receipts or other securities by Salvation, with a price per security to be determined by Salvation after consultation with its financial advisors, sufficient to meet Salvation's goals and the Exchange's listing requirements.

It is intended that such financing will constitute a “Concurrent Financing” as such term is defined by the policies of the Exchange for the purposes of the Acquisition.