New AI-powered FAO solution is designed to work with institutions' existing fraud systems

Highlights

• FAO analyzes alerts generated by a financial institution's existing fraud detection systems and identifies alerts that are likely to be false positives before they consume fraud operations resources.
• Designed to reduce avoidable manual reviews, lower operating costs and limit unnecessary payment holds that create friction for legitimate customers.
• FAO is intended to operate as an intelligence layer on top of existing fraud controls, supporting lower integration complexity/cost and allowing financial institutions to retain their current fraud infrastructure.
• FAO expands Pelican's suite of solutions across payments, financial crime compliance and trade finance.

Toronto, Ontario--(Newsfile Corp. - September 17, 2026) - Pelican AI (CSE: PEL) ("Pelican" or the "Company"), a provider of artificial intelligence-powered payments, financial crime compliance and trade finance solutions, today announced the launch of its Fraud Alerts Optimizer ("FAO") and a beta pilot program for select financial institutions.

FAO is designed to address one of the most persistent cost drivers in financial institution fraud operations: Payment alerts that are generated as suspicious but ultimately prove to be legitimate. The product applies Pelican's AI capabilities and transaction intelligence to alerts produced by a financial institutions' existing fraud detection systems, helping identify false positives before they enter or advance through a manual investigation queue.

FAO evaluates fraud alerts using available historical transaction patterns, relevant market intelligence, known fraud indicators and other data permitted by the participating financial institution. Based on financial institution-configurable thresholds, governance and workflows, the solution is transparent and is designed to identify, suppress or deprioritize alerts assessed as likely false positives while escalating alerts that warrant closer review.

By helping financial institutions focus their fraud resources on higher-risk activity, Pelican believes FAO can support lower investigation costs, faster decision-making and a smoother payment experience for customers. The product is intended to complement, rather than replace, a financial institution's current fraud controls, allowing institutions to add a new intelligence layer with limited disruption to established systems and workflows.

Because FAO is designed to layer on top of existing fraud detection technology, financial institutions can evaluate its potential benefits without replacing core systems. This approach is intended to reduce integration complexity and costs, protect existing technology investments and accelerate the path from pilot testing to broader deployment, subject to each institution's technical, security, risk and regulatory requirements.

Fraud detection systems are intentionally sensitive to unusual transaction behaviour. At scale, repeated investigations of legitimate transactions can absorb substantial employee time and increase contact centre and fraud operations expense. They can also frustrate customers, delay time-sensitive payments and reduce confidence in a financial institution's payment services.

Benefits for Financial Institutions

• Lower fraud operations costs: Fewer false-positive investigations reduce the time and expense devoted to transactions that are ultimately legitimate.
• Better use of specialist resources: Fraud teams can devote more attention to higher-risk alerts, emerging attack patterns and other value-adding work.
• Reduced customer friction: Fewer unnecessary holds and verification calls can support faster payments and a better customer experience.
• Lower implementation burden: An overlay approach is designed to work with existing fraud systems, helping limit the cost and disruption associated with wholesale platform replacement.
• Compelling economic potential: Savings from reduced manual investigations may materially exceed the cost of the solution. Actual results will depend on each financial institution's alert volumes, existing false-positive rate, operating model, integration and use of FAO.

"False positives are one of the most persistent and expensive inefficiencies in financial institution fraud operations. FAO is designed to turn the intelligence financial institutions already possess - transaction history, known fraud signals and market context - into faster, more confident alert decisions. By reducing unnecessary investigations without asking a financial institution to replace its core fraud system, we believe FAO can deliver a compelling return on investment, free skilled teams to focus on genuine threats and provide a smoother experience for legitimate customers.

"This launch also demonstrates the commercial potential of Pelican's broader AI platform. We intend to build on the Company's long operating history, global customer footprint and proven payments and compliance expertise with a disciplined roadmap of practical, high-value products that can deepen customer relationships and create new opportunities across financial institutions, fintechs and payment providers," commented Nino Di Teodoro, Chief Executive Officer of Pelican AI.

Pelican Product Portfolio

FAO expands Pelican's suite of solutions across payments, financial crime compliance and trade. Pelican's portfolio is designed to help financial institutions, fintech companies and corporations modernize transaction processing, manage risk, lower operating costs and support changing payment standards.

Pelican Payments

• Financial AI Hub. Uses AI and natural language processing to read and analyze structured and unstructured payment data, helping automate validation, routing, repair, exception handling and transaction insight.
• Digital Payments Hub. Supports the end-to-end payment lifecycle across payment methods, helping institutions consolidate processing, improve automation and adapt to evolving market and regulatory requirements.
• iPaaS. An API-driven integration platform with built-in connectivity for cross-border, RTGS, instant and ACH payments across global markets, designed natively for ISO 20022.
• Instant Payments. Enables connectivity to and processing across multiple real-time payment schemes, helping institutions deliver scalable, secure and always-available payment services.
• Verification of Payee and Intelligent Name Matching. Compares payee information before a transaction is completed and applies intelligent name matching to improve match accuracy, helping reduce misdirected payments, authorized push payment fraud and unnecessary exceptions.

Pelican Compliance

• Watchlist and Sanctions Screening. Applies intelligent name and entity matching to strengthen sanctions and watchlist screening while helping reduce false-positive alerts and associated review costs.
• Anti-Money Laundering. Uses AI to identify suspicious activity and generate alerts in real-time and offline modes, supporting more efficient transaction monitoring and investigation.
• Payments Fraud Prevention. Uses multiple AI techniques to identify known and emerging fraud patterns and support real-time fraud decisions.
• iCaaS. Provides integrated compliance APIs for watchlist and sanctions screening, anti-money laundering, know-your-customer processes and fraud detection, supporting flexible consumption and faster implementation.

Pelican Trade

• Trade Digitization, Automation and Compliance. Uses AI to ingest and analyze trade documents, automate manual processing and perform compliance and risk checks involving high-risk jurisdictions, invoice anomalies, high-risk goods and document discrepancies.

FAO is one of several enhancements and new products on Pelican's roadmap. The Company expects to provide additional product announcements and pilot invitations as development and testing milestones are achieved.

For Pelican, FAO extends the Company's core AI, payments and compliance capabilities into a high-cost operational challenge faced by financial institutions globally. Its planned overlay model is designed to lower barriers to evaluation and deployment, while the pilot program creates a structured path for customer validation, product refinement and potential future commercialization.

About Pelican AI

Pelican AI is a financial technology company providing artificial intelligence-powered solutions for payments, financial crime compliance and trade finance. With more than 30 years of proprietary AI expertise, Pelican's technology is trusted by major financial institutions across more than 55 countries and has processed more than 2 billion transactions representing approximately $10 trillion in value.

Pelican's technology uses artificial intelligence, machine learning and natural language processing to help financial institutions automate payment processing, improve straight-through processing, strengthen financial crime compliance and modernize transaction banking infrastructure. Its solutions include Pelican Payments, Pelican Secure and AI-powered trade finance applications.

For more information, visit Pelican AI's website: https://pelican.ai/

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, including statements regarding the commencement of trading of the Common Shares on the CSE under the symbol "PEL", the Company's business plans and objectives, and the status and potential outcomes of the disclosed litigation. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially, including the risk that trading does not commence when anticipated, the risks associated with the disclosed litigation, general economic and market factors, competition, and the other risks described in the Company's public disclosure documents available on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking information. The Company disclaims any obligation to update forward-looking information except as required by law.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent registration or an applicable exemption.

Pelican is involved in ongoing litigation. Readers are directed to the Company's August 27, 2026 news release and the disclosure in "Item 23 - Legal Proceedings and Regulatory Actions" and "Item 21 - Risk Factors" in the Company's CSE Form 2A Listing Statement available on the Company's SEDAR+ profile at www.sedarplus.ca for further details.

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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