Mr. Dale McClanaghan reports

LOTUS UPDATE BRANDING AND PLANNING

Lotus Ventures Inc. is approaching completion of its initial 22,500-square-foot facility and anticipates submission of its evidence package in November. Design work and building permit drawings for the expansion of the facility by an additional 28,000 square feet to 30,000 square feet are almost complete. The company will provide an update on the expansion budget, estimated capacity and timeline shortly after permit drawings are complete.

Lotus Ventures has retained IF Communications for assistance in the packaging and branding of Lotus's strains. The company executives and production staff, including head grower and first grower, identified the group's dedication to reliable production of premium cannabis products. The company is well aware of North Okanagan's tradition of producing top-quality medical and recreational marijuana and in a wide variety of specialized strains.

The Lotus brand approach will express the enhancement of plant health and growing conditions through authentic cultivation processes as well as the best technology on environmental and sanitation controls. These technologies also enable low production costs for a premium product.

Further to the news release of Oct. 15, 2018, the company has closed a third tranche of its non-brokered private placement financing by issuance of 2.8 million units at a price of 25 cents per unit for gross proceeds of $700,000. Each unit consists of one common share and one transferable share purchase warrant, each warrant exercisable to purchase one common share at 30 cents per share for five years. Securities issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities law. Total proceeds from the placement, announced Sept. 11, 2018, were an aggregate of $2,815,000 and 11.26 million units issued. The proceeds from the offering will be used for working capital and general corporate purposes.

We seek Safe Harbor.