Mr. Douglas Mason reports

NATURALLY SPLENDID TO ACQUIRE CANNABINOID EXTRACTION EQUIPMENT FROM WAHUPTA

Naturally Splendid Enterprises Ltd. has proposed to acquire certain cannabinoid extraction equipment with a value of $1,025,000 from Wahupta Ventures Inc. by issuing a total of 5,540,541 common shares of Naturally Splendid.

To date, Wahupta has completed three financing tranches totalling $500,000 under the previously announced co-operation agreement (see news release dated Oct. 9, 2018). The acquisition of the extraction equipment represents the final tranche of the renegotiated terms of the co-operation agreement.

Wahupta has significant expertise in the field of cannabinoid extraction through its wholly owned manufacturing subsidiary, Curran Technologies Inc. (CTI), which has designed a complete extraction facility and laboratory for Naturally Splendid. CTI is an industrial manufacturer of high-quality, closed-loop extraction equipment, based out of Victoria, B.C., Canada. CTI's principal manufactured extraction system, the high-efficiency Extract Pro series, is touted for its durability, scalability and productivity.

As part of the final tranche of the co-operation agreement, Naturally Splendid will receive four extraction units from CTI including three Extract Pro RIV extraction units and one Extract Pro RIII extraction unit, as well as all required accessories to be a fully functional cannabinoid extraction facility.

The scalable solutions offered by CTI will be optimized to facilitate the processing of a range of input biomass materials into a variety of finished cannabinoid states, whether that be isolate or full spectrum oils. Additionally, Wahupta will be designing and installing a functional laboratory to augment the services and equipment provided to Naturally Splendid.

Manufacturing of the extraction equipment has commenced, with final testing scheduled to be completed in a strategic time frame in order for Naturally Splendid to receive the appropriate licensing from Health Canada. The extraction facility will be completed in Naturally Splendid Extracts' Pitt Meadows manufacturing facility in British Columbia, Canada.

Wahupta chief executive officer Warren Cudney states: "I know the industry is all about bigger is better. And that is a reasonable assumption to a point. However, we have developed an extraction strategy with Naturally Splendid that utilizes multiple, scalable batch units. The fact is cannabinoid extraction in Canada is still relatively new. The extraction technologies are advanced and commercially viable. It's the preparation of input biomass material that is still being optimized throughout the industry. Smaller batch units allow for multiple test runs to optimize outputs while minimizing loss of valuable biomass for testing. It is our experience that while the extraction technology is advanced, the farming, cultivating, harvesting and preparing of biomass is still very much an evolving science. With these units, we can begin to work with farmers determining how to best harvest in a manner that allows for maximum yields from various biomass forms."

Naturally Splendid's vice-president of operations and co-founder, Bryan Carson, states: "At NSE we understand how to scale up from concept to retail-ready product. Product development is done in incremental steps. Therefore, the flexibility that multiple small batch extraction systems affords us will create a competitive advantage when it comes to product development. This methodology allows for more testing of products through an R&D strategy, creating a much more efficient product development process."

Additionally, Naturally Splendid Extracts and Wahupta will work toward finalizing another co-operation agreement that will see the companies leverage their combined expertise and services in the cannabinoid extraction markets.

Naturally Splendid chief executive officer Douglas Mason reports: "This is a historic day for NSE as we begin the process of building out our cannabinoid extraction facility. Naturally Splendid Extracts is continuing its application process for a standard processing licence for a cannabinoid extraction facility under the Cannabis Act (Canada) and the construction of the facility is a critical step in the process of securing the required licensing from Health Canada. We are pleased to advance our subsidiary, Naturally Splendid Extraction, to this stage and look forward to the multitude of opportunities working with Wahupta."

Over the past 12 months, Naturally Splendid has begun to position itself to be a significant player in the evolving CBD markets by aggressively expanding its existing distribution reach through its non-CBD retail lines such as Natera Hemp Foods, Natera Sport, Natera FX, Elevate Me and Pawsitive FX, as well as through Naturally Splendid Extracts' many contract manufacturing clients that have products being sold at most major retailers across Canada. Currently, Naturally Splendid retail lines are formulated and marketed without CBD fortification. However, once regulations allow for CBD edibles and beverages, Naturally Splendid Extracts will have a built-in distribution network throughout North America.

CBD regulations in Canada are expected to be amended in 2019 to allow for CBD-infused edibles, nutraceuticals and beverages. Health Canada will be holding sessions in the spring of 2019 to develop the proposed regulations pertaining to cannabinoid processing and sale.

Naturally Splendid president and founder Craig Goodwin states: "We have evolved our strategic business plan from that of solely retail products, to a much more vertically integrated business model that currently includes our own manufacturing for hemp seeds, protein and oil, as well as our nutritional bar manufacturing facility. The addition of a cannabinoid extraction facility for CBD (cannabidiol) further enhances the services and products we can offer our clients. We are looking forward to processing the Wahupta biomass and to building a strong brand of CBD-based products co-operatively with Wahupta, utilizing our various manufacturing facilities."

Closing of the acquisition of the extraction equipment and issuance of the shares is subject to acceptance of the TSX Venture Exchange.

About Naturally Splendid Enterprises Ltd.

Naturally Splendid is a biotechnology and consumer products company that is developing, producing, commercializing and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient dense foods and related products.

We seek Safe Harbor.