Happy Valley Nutrition Limited provided an update to its announcement released on 20 December 2022 in relation to a major milestone in its Protein Strategy. The Company has entered a conditional "Offtake - Term Sheet" with Arla Foods amba, the leading Danish Dairy Co-operative to source MPC85 manufactured at Happy Valley's state-of- the -art nutritional grade processing facility in Otorohanga, New Zealand. This is a significant step in validating Happy Valley's Protein Strategy and an important vote of confidence from a globally recognised Dairy leader.

Offtake - Term Sheet Framework and Key Conditions Precedent: MPC85 volumes committed - in the range of 25-50% of HVMs MPC85 annual production volume. MPC85 is anticipated to be the main product of the facility. Pricing mechanism agreed - multiple of Skim Milk Powder Global Dairy Trade price (SMP GDT).

Term of the contract is 4 year's. Conditional on completion of Happy Valley's facility and satisfaction that the Company achieves their quality assurance requirements.