Mr. Craig Goodwin reports

NATURALLY SPLENDID REPORTS OVER $6.3 MILLION IN 2016 YTD REVENUE

Naturally Splendid Enterprises Ltd. has released its unaudited financial results for the nine months ended Sept. 30, 2016. All amounts are in Canadian dollars and are prepared in accordance with international financial reporting standards.

Naturally Splendid recorded $1,235,580 in revenue during the third quarter of 2016 (year-to-date 2016 -- $6,333,460). This represents a significant increase in revenue compared with the third quarter of 2015, which amounted to $200,571 (year-to-date 2015 -- $310,523). The significant increase in top-line revenue was mainly due to bulk sales of hemp products to Korea and POS BPC commencing operations in the second quarter of 2016.

Naturally Splendid previously announced that it received purchase orders totalling $9.2-million for fiscal 2016 (see news release dated July 21, 2016) and recorded sales of $7.26-million for fiscal 2016 (see news release dated July 25, 2016). Naturally Splendid was unable to fulfill the purchase orders and realize these sales in the third quarter due to production bottlenecks by the third party processor, as well as working capital constraints. However, the third party processor has now resolved the production challenges and is consistently reaching targeted outputs of finished product. Craig Goodwin, chief executive officer, stated: "It was a frustrating quarter to say the least since the company had secured the significant purchase orders along with the necessary inputs. In fact, the third party processor is prepared to further increase production to match demand as Naturally Splendid secures new purchase orders."

Gross profit for the third quarter of 2016 amounted to $375,483, or 30 per cent of sales (year-to-date 2016 -- $2,052,219, or 32 per cent), and net loss was $637,830 (year-to-date 2016 -- $210,460). These amounts also represent significant improvements over the third quarter 2015 gross profit of $38,758, or 19 per cent of sales (year-to-date 2015 -- $10,072, or 3 per cent), and net loss of $891,033 (year-to-date 2015 -- $3,096,805).

Mr. Goodwin stated: "We've experienced significant growth in gross revenue in 2016, though bulk sales slowed in the third quarter. With completion of the company's final tranche of the private placement, we received an additional $3.2-million, and that now gives us the working capital to support increased sales and address the production bottlenecks we have been experiencing. With exports, processing and our retail lines all performing well and sufficient financial resources to support growth, we can now add additional resources to the promising HempOmega and cannabinoid markets."

Naturally Splendid's unaudited condensed financial statements and management's discussion and analysis have been filed on its profile on SEDAR.

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