Mr. Grant Froese reports

HARVEST ONE PLEASED TO ANNOUNCE RECORD REVENUES FOR FIRST QUARTER OF FISCAL 2019 HARVEST ONE PLEASED TO ANNOUNCE RECORD REVENUES FOR FIRST QUARTER OF FISCAL 2019

Harvest One Cannabis Inc. has released its financial and operating results for the three months ended Sept. 30, 2018.

"This has been an exciting and decisive period in the history of Harvest One," said Grant Froese, chief executive officer of Harvest One. "Harvest One has undergone important leadership changes as it transitions to the next stage of its development. This quarter was also a pivotal period in the evolution of the Canadian cannabis industry as all stakeholders underwent the unique operational exercise of preparing for full legalization of recreational cannabis in Canada. I am proud to say Harvest One has executed on our rollout strategy, meeting all provincial obligations and establishing the basis for successful long-term relationships with both public and private retailers. The work we are doing now lays the foundation for a landmark year in 2019, when cannabis companies will be judged on execution and financial performance. This is emphasized by Harvest One's record revenues this quarter, representing an 862-per-cent increase over the same period last year. With revenue forecasts in place for each of our four divisions -- licensed producer, retail, medical and nutraceutical, and consumer -- Harvest One remains very optimistic for the balance of fiscal 2019."

Highlights:

• Q1 2019 revenue for the company was $1.68-million, an increase of 862 per cent from Q1 2018 and a 227-per-cent increase from the previous quarter. This increase is primarily due to the contribution of Dream Water sales, bulk sales of cannabis to other licensed producers as well as an initial recreational cannabis sale to the Province of British Columbia.
• As of Sept. 30, 2018, the company maintains a very strong balance sheet with a cash balance of $48.3-million. This cash position means all current expansion plans are fully financed and allows for further acquisitions that support the company's brand and product development strategy.
• The company signed agreements to supply adult-use cannabis with four provinces: British Columbia, Ontario, Manitoba and Saskatchewan. The company successfully met all provincial load-in obligations.
• The company also initiated its retail strategy acquiring a 19.99-per-cent interest in a luxury British Columbia-based retail group called Burb Cannabis Corp. The investment falls within the allowable maximum investment of 20 per cent established by the British Columbia government. Burb expects to open between eight and 10 stores in British Columbia in 2019, with a further rollout across the country.
• The company announced favourable results in phase 2 clinical trials using its proprietary Satipharm capsules for the treatment of pediatric epilepsy. The median seizure reduction was minus 82 per cent in the 12-week treatment period. These results were recently presented at the Epilepsy Society of Australia Conference.
• The company closed a strategic acquisition of Phytotech Therapeutics (PTL), giving the company access to valuable intellectual property and research capabilities to support product development for Satipharm.
• The company entered into a multiyear extraction services agreement with Valens GroWorks Corp. for cannabis extraction and value-added services. The company intends to work very closely with Valens to develop innovative products to support both its recreational and medical strategies.
• The company has started construction on two separate expansion sites -- one in British Columbia and the other in Saskatchewan. In Duncan, B.C., the company's facility is undergoing a modular expansion, which will triple output as the modules come on line. The first harvest is scheduled for early 2019. At the company's Lucky Lake facility in Saskatchewan construction is under way on a state-of-the-art indoor cultivation facility, which will produce an estimated 8,000-plus kilograms of the company's premium-quality dried flower product annually.

Fiscal 2019 started with the appointment of a new chief executive officer, Grant Froese. Mr. Froese comes to Harvest One with 38 years of retail and operations experience, most recently as chief operating officer of Loblaw. In addition to this appointment, Harvest One underwent a significant overhaul of the senior leadership team, making the following notable additions:

• Andrew Kain -- chief operating officer and general counsel;
• David Hyde -- advisory board;
• Frank Holler -- board of directors;
• Will Stewart -- senior vice-president, corporate and public affairs;
• Ann Gallery -- senior vice-president, corporate communications;
• Gord Davey -- senior vice-president, global sales;
• Todd Dea -- president of United Greeneries;
• Jonathan Hartshorn -- president of Satipharm;
• Tucker Wright -- president of Dream Water.

Harvest One's 2019 first quarter management discussion and analysis and consolidated financial statements for the quarter ended Sept. 30, 2018, along with all previous Harvest One public filings, may be found on SEDAR.

About Harvest One Cannabis Inc.

Harvest One is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world. The company's range of lifestyle solutions is designed to enhance quality of life. Shareholders have significant exposure to the entire cannabis value chain through three wholly owned subsidiaries: United Greeneries, a licensed producer; Satipharm (medical and nutraceutical); and Dream Water Global (consumer); as well as a minority interest in Burb Cannabis (retail operations).

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