2023 Forced Labour and Child Labour Report

1. About This Report

This report relates to the financial year ending December 31, 2023. It is published by FortNine Holdings Inc. and its subsidiary Boutique Linus Inc., also known under the trademark FortNine (the "Company") in compliance with the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the "Act"). References in this report to "FortNine", "Company", "we", "our" and similar terms are to FortNine Holdings Inc.

This report was approved by the Board of Directors of the Company on May 29, 2024.

2. Preventing and Reducing Risks of Forced Labour and Child Labour

We consider the respect of human rights to be a fundamental corporate responsibility and we are committed to improving our practices to combat forced labour and child labour within our own operations and we expect the same of our suppliers.

The brands we carry have high standards of security and quality, and we value suppliers that have controls in place to prevent forced labour and child labour. FortNine has been built on offering the best and most reputable brands in the powersport industry to our customers.

During our last financial year and in the context of the Act coming into force, we have reviewed and addressed certain practices in our activities and those of our suppliers with a view to identify ways to prevent and reduce the risk that forced labour or child labour be used in our business and supply chain. However, we are only at the beginning of our process.

3. About Us & Our Supply Chain

FortNine is an online store for powersport gear and accessories in Canada. We service Canadian riders with an extensive selection of products, including Motorcycle Helmets, Rider Apparel, Tires, Parts, Dirt Bike Gear, Snowmobile Clothing and ATV Accessories. We are authorized dealers of the most well trusted brands such as Alpinestars, Arai, Dainese, Fox Racing, Klim, Revit, Shoei, Michelin and many more.

We source our products from suppliers and manufacturers located in Canada, the US and Europe. During our last financial year, more than 80% of the goods we purchased originated from Canada. We however acknowledge that most of our suppliers source their own products from manufacturers located in overseas countries, such as China, which may have higher prevalence of labour rights abuses. This is why we select suppliers with strong track record and good reputation.

4. Policies and Due Diligence Processes

Given that we have not yet implemented our own policies and due diligence processes, we currently rely on those of our suppliers, also recognizing that many of our vendors are themselves subject to modern slavery legislation here or abroad.

We have not yet been providing training to our staff with regards to human rights issues, but we are generally committed to acting ethically and with integrity in all our business relationships and we have zero-tolerance to forced and child labour.

5. Risk Assessment & Remediation Measures

Many of our suppliers are substantive, well reputed companies with which FortNine has had regular and close dealings over a long period. We believe that long-term relationships with suppliers can enhance performance along the supply chain.

We also recognise that our suppliers have their own supply chains and although we have limited visibility into such supply chains, we know that the goods we purchase from our suppliers are mainly manufactured in China, where the risk of forced and child labour may be higher.

That said, we have not been made aware of specific instances of forced labour or child labour and as such, no measures have been taken during the reporting period to remediate forced labour or child labour or loss of income in our activities and supply chain.

6. Assessing the Effectiveness of Our Approach

Ensuring that forced labour and child labour practices are not taking place in our business and supply chain is and will always be a work in progress. While we have not yet taken specific measures to assess the effectiveness of our actions, we intend to assess our effectiveness in preventing and reducing risks of forced labour and child labour in our activities and supply chain at a later stage.

This report was approved by the Board of Directors of the Company on May 29, 2024 pursuant to paragraph 11 (4)(a) of the Act and constitutes our report for the financial year ending December 31, 2023.