TAILORED INNOVATION FOR THE URBAN ATHLETE

DISCLAIMER

This presentation may include certain "forward-looking statements" within the meaning of the United States Private Litigation Reform Act of 1995 and applicable Canadian Securities Laws. All statements other than statements of historical fact are forward-looking statements. Words such as "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe" and other similar expressions are forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to risks, uncertainties, assumption and other factors, and actual results and future events could differ materially from those anticipated in such statements. There can be no assurance that such forward-looking statements will prove to be accurate. We base our forward-looking statements on information currently available to us and we do not assume any obligation to update them, except as required by law.

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WHAT IS RYU?

RESPECT YOUR UNIVERSE is the world’s first tailored, urban athletic training brand. Engineered for the fitness, training and performance of the multi-discipline athlete.

TIMELINE

2014

DECEMBER 2014 RYU APPAREL INC. IS BORN

DECEMBER 2014 NEW LEADERSHIP TEAM

IS ASSEMBLED

DECEMBER 2014 RYU RE-BRANDING BEGINS

DECEMBER 2014 CLOSED SEATTLE STORE

2015

JANUARY 2015 NEW VANCOUVER

HEADQUARTERS OPENS

FEBRUARY - JUNE 2015 NEW PRODUCT LINE

DESIGN + DEVELOPMENT

JUNE - NOVEMBER 2015 PRODUCTION + DELIVERY

OF NEW PRODUCT LINE

NOVEMBER 2015 FLAGSHIP STORE OPENS

DECEMBER 8 2015 ONLINE STORE OPENS

DECEMBER 2015 NEW RYU SALES FOR 2015

TOTAL $245K

TIMELINE

2016FEBRUARY 2016 RYU SELECTED

2016 TSX VENTURE TOP 50

RANKED SIXTH IN THE DIVERSIFIED INDUSTRIES

APRIL 2016 SECOND LOCATION ANNOUNCED

TO OPEN FALL 2016

APRIL 2016 LOCKER PACK LUX NOMINATED

BY CARRYOLOGY FOR BEST WORK BACKPACK

APRIL 2016 QUICK PACK LUX NOMINATED

WINS SILVER A DESIGN AWARD

MAY 2016 FLAGSHIP STORE WINS WGSN FUTURES AWARD

FOR BEST STORE

JUNE 2016 THIRD LOCATION ANNOUNCED

TO OPEN WINTER 2016

OCTOBER 2016 FOURTH LOCATION ANNOUNCED

TO OPEN SPRING 2017

AUGUST 2016 FIFTH LOCATION

ANNOUNCED TO OPEN

SUMMER 2017

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FILLING THE VOID | TAILORED INNOVATION FOR THE URBAN ATHLETE

The male athlete market is underserved. The female athlete market is awash in a sea of sameness. There is a void in athletic bags that organize an athlete’s life. Gym, office, home, there + back.

ADIDAS STELLASPORT

ARITZIA

KIT AND ACE

ATHLETALULULEMON

FABLETICS

SWEATY BETTYLOLE

LORNA JANE

REEBOKRHONE

ADIDAS

UNDER ARMOURNIKE

WINGS AND HORNS

NIKELABAETHER

FITNESS FASHION

FEMA

LEMA

LE

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THE RAPIDLY INCREASING ATHLETIC APPAREL CATEGORYProjected development of the global sports apparel market from 2016 to 2022 (in billion US dollars)

0

53

105

158

210

160 167 174 181189

197 206

source: trefis.comStatista 2016

2016 2017 2018 2019 2020 2021 2022

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CREATING A NEW CATEGORYTAILORED INNOVATION. URBAN ATHLETIC.

TAILORED INNOVATION URBAN ATHLETIC #BEAUTIFULTOUGH #THISISAGYM

We are refined contrast. We are precision fit. We are modern style.

We are innovative solutions to athlete problems. We are performance fabrics. We are forefront construction methods.

We live in a city. We live in a gym. We are athletes.

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CREATING A NEW CATEGORY | URBAN ATHLETICMEN’S EVERYWEAR PANT Everything. Everyday. Everywear.

EVERYWEAR PANT. It is the toughest.

The toughest fabric. Dense knit nylon fiber will withstand abrasion. The most movement. 30% of the fabric is lycra fiber. Strategically designed gussets. Tailored cut. Built in Vancouver. Fabric milled in the USA.

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CREATING A NEW CATEGORY | URBAN ATHLETICMEN’S EVERYWEAR PANT Everything. Everyday. Everywear.

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CREATING A NEW CATEGORY | URBAN ATHLETICWOMEN’S TOUGH TIGHT Put them on and forget about them.

TOUGH TIGHT.

Supports all that you do. TriLayr Technology waistband. No distractions. Cut so it stays in place. No readjusting needed. Active seam and flat lock construction. Bacteriostatic carbon mesh lined gusset. Go commando.

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CREATING A NEW CATEGORY | URBAN ATHLETICWOMEN’S TOUGH TIGHT Put them on and forget about them.

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CREATING A NEW CATEGORY | URBAN ATHLETICLOCKER PACK LUX The bag that works as your gym locker.

LOCKER PACK LUX.

Drop front opening for easy access to all your gear. Open mesh pockets inside for water bottles, wraps, tape, etc. Tough wearing Australian loomed canvas that looks better with age.

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CREATING A NEW CATEGORY | URBAN ATHLETICLOCKER PACK LUX The bag that works as your gym locker.

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THE NEW STANDARD | TAILORED INNOVATION.

RYU OTHER

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AWARDS + RECOGNITION

KITSILANO FLAGSHIP STORE Futures Awards 2016 winner - Best Store

LOCKER PACK LUX Nominated by Carryology for best work backpack

FUTURES AWARDS 2016 WINNER

B E S T S T O R E

QUICK PACK LUX Silver A Design Award Winner

MEN’S EVERYWEAR PANT “Sports Performance Clothes You Can Wear To Work”

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RETAIL STORES

RYU Flagship Kitsilano, Vancouver WGSN Award Winner Opened November 2015

Thurlow + Robson Downtown Vancouver Heart of Robson shopping district Opening November 2016

Park Royal South West Vancouver Opening Winter 2016

Queen Street West Toronto Opening Spring 2017

Metrotown Burnaby Opening Summer 2017

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RETAIL STORE GROWTH PLAN

• End of 2017 - 5 stores • End of 2018 - 8 stores • End of 2025 - 100 stores

eCOMMERCE

E-NEWSLETTERS

ONLINE STORE eCommerce target 35% of overall revenues by end of 2021. YTD 2016 is 15% based on organic sales, minimal marketing spend.

This will be achieved through:

• Brand Awareness • Marketing Spend

• Data Analytics • Community

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BETA 37.5

An environment for innovation

  Leveraging Vancouver’s established international expertise in technical design, RYU has pioneered a new process for bringing tailored innovation to market.

Ideas are incubated. Designers work at a 3D level vs 2D sketches. 

In-house samples are built, beat up and made better until the Golden Sample is achieved.

The costly back and forth communication between factory and designers is eliminated. 

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RYU CONNECTOR PROGRAM

The RYU Connectors Program is building a community of influential leaders that represent, and live, the values of RYU: aliveness, bold expression, curiosity, discipline and respect.  Our goal is to facilitate human performance for one million athletes around the globe.    An RYU Connector’s objectives are, first and foremost, to continue being leaders in the athletic community, to support others in their health, fitness and performance goals, to respect others at all times, and to be actively engaged in community events, charities and volunteer efforts.    Facility owners, trainers, nutritionists, physiotherapists and competitive athletes are enrolled in the Connectors Program from across Canada and the US.

Alexandra Ianculescu Canadian National Team Olympic Speed Skater

Simon “Thor” Damborg Head Coach | Director Raincity Athletics

Ben Carr Professional Trainer Innovative Fitness

Tori Katongo Personal Trainer | Steve Nash Dancer | Singer | Actor

Cassie Hawyrsh Canadian National Team Skeleton Racer

Dai Manuel Coach | Lifestyle Mentor Author of The Whole Life Manifesto

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COMMUNITY

Snapshot of RYU events

RYU + SPIN SOCIETY | BATTLE RIDES RYU + FOUR SEASONS + GLOBAL WELLNESS DAY

NATALIE LANGSTONS’ FITNESS ON THE RUN TREVOR BIRD’S NUTRITION SEMINAR THE GET UP | 3 VS 3 HIP HOP BATTLE

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SOCIAL MEDIA

INSTAGRAM INSTAGRAM.COM/RYU_APPAREL

• Main focus on conversation and athlete interaction • 20+ tags/mentions in user posts each day • #Beautifultough campaign - 6000+ posts, 95% user

generated.

FACEBOOK FACEBOOK.COM/RYU APPAREL INC.

• Community hub for our athletes  • Lists all engaging events to bring new customers into

our store every day • Engagement and likes grew 5000% this past quarter

PINTEREST PINTEREST.COM/RYU APPAREL INC.

• Platform to share design inspiration, new collections, and athlete stories

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SOCIAL MEDIA#beautifultough | #thisisagym

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SHARE OWNERSHIP - October 27th, 2016

74%

19%7%

Institutional: 7% Insiders & Management: 19% Individual Investors: 74%

As of October 27, 2016 Units Price Market Capitalization

Basic shares 124,419,335 $ 0.15 $ 18,662,900

Warrants 71,701,785 $ 0.42

Stock options 10,410,500 $ 0.29

Capital Structure

RYU Apparel Inc. trades in the TSX Venture Exchange ticker "RYU" and Frankfurt Stock Exchange ticker "RYA"

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LEADERSHIP TEAMMr.  Leone is highly regarded as a visionary in the fashion industry. Recognized as one of North America’s leading retailers operating one of Canada’s largest and most successful independent specialty stores for over 16 years, Mr. Leone’s entrepreneurial achievements are a result of his strong leadership, strategic vision and ability to raise capital. He has been an RYU investor since 2011.

MARCELLO LEONECEO, PRESIDENT + CHAIRMAN

Mrs. Klassen is the former Director and President of Ank Apparel Manufacturer, one of the leading technical apparel manufacturers . She was also director of Polartec Performance fabrics for Canada and the Pacific North West. With over twenty-eight years of experience in the apparel industry, in both brand development and product design. Treya will be leading the team at RYU in developing and creating the newest, most innovative product platforms. Treya’s strength is creating culture, team and vision.

TREYA KLASSENVP OF PRODUCT + BRAND

Mr. Briglio has over 25 years of sales management, brand development and marketing experience in the sports industry with both local and international brands. He was instrumental in making Swany Canada the #1 selling performance winter sport glove in North America, taking the company from a start-up to the market leader. His previous experience includes Helly Hansen, Scarpa and Deuter, and large dealer programs for Costco, MEC, Blackcomb among others.

ALEX BRIGLIOVP OF SALES + MARKETING

Mr. Villa is a Chartered Professional Accountant (CPA, CA) with seven years of post-designation professional experience. Prior to joining RYU, he held controllership and financial reporting roles in three Vancouver based mining companies with operations in North America. Mr. Villa began his professional career at Deloitte in the audit and assurance practice serving notable Canadian public companies in the IT and mining industries for four years. Mr. Villa has a Bachelor of Science in Business Management with concentrations in entrepreneurship and marketing from Babson College in the United States.

PEDRO VILLACHIEF FINANCIAL OFFICER

Mr. Pawson is an entrepreneur, executive and manager with over 15 years of sales and operations experience in the retail, consumer goods and wellness sectors.  He has extensive experience in the athletic apparel space and his past experiences include successful franchise roles with lululemon athletica, The Body Shop and national distribution for pluggz Footwear. He was instrumental in establishing lululemon athletica in Saskatoon, Saskatchewan as one of the top performing stores in the company.

BRETT PAWSONVP OF RETAIL

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REVENUE | FIRST THREE YEARS

0

350

700

1,050

1,400

Y1 Y2 Y3

853K*

17K

350K

650K

1.3M

100K

394K

*First 7 months

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COMPARATIVE VALUATION

*lululemon & Under Armour are actual revenue **RYU is projected revenue

LULULEMON (FY2*)

UNDER ARMOUR (FY 2)*

RYU (FY 1)**

C $0.65M

US $0.10M

C $2.00M

16 X

14 X

14 X (ESTIMATED)

1 YEAR FORWARD SALES

1 YEAR FORWARD PRICE / SALES (FIRST 3 YEARS OF OPERATION)

IMPLIED VALUATIONC $10.4M

US $1.4M

C $28.0M

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THANK YOU

We appreciate your time today.

Pro Forma financial information available for discussion on signing of NDAs.

Sarah Morgan M. 604.754.9906 O. 604.569.1414 E. smorgan@ryu.com

TSX-V RYU