Mr. Facundo Garreton reports

BLUEBERRIES MEDICAL REPORTS Q1-2023

Blueberries Medical Corp. had exceptional financial and business performance in the first quarter ended March 31, 2023. The company has demonstrated remarkable growth, doubling its revenue from the comparative period in 2022. Blueberries has filed its unaudited condensed interim consolidated financial statements and related management's discussion and analysis, both of which are available on Blueberries' profile on SEDAR. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

"We have achieved remarkable growth, with revenue doubling compared to the same period last year. This accomplishment is a testament to our unwavering commitment to excellence and our strategic initiatives. Our team's dedication and hard work have been instrumental in driving our success, and we are excited about the future prospects of Blueberries Medical Corp.," said Facundo Garreton, chairman and chief executive officer.

Financial and business highlights -- first quarter 2023 and as of the date hereof:

• Total revenue for the first quarter of 2023 reached $77,894, representing a substantial increase of $44,179 (131 per cent) compared with the comparative period. This growth reflects the company's unwavering commitment to excellence and strategic initiatives.

Business expansion and achievements

1. Market expansion:

• Blueberries has expanded its export sales of tetrahydrocannabinol and cannabidiol isolates to key markets such as Peru, Argentina and Australia. The company successfully completed one of its largest THC distilled exports from Colombia to Australia after rigorous quality validation. This achievement has paved the way for a coming second order to Australia, which will be three times larger and shipped before the end of the second quarter of 2023. Blueberries has also received new orders of THC value-added products, including bulk semi-elaborate products, resin and distillate, from customers in Brazil and Chile.

2. Regulatory milestones:

• In the first quarter of 2023, the company obtained authorization from the logistic hub's authority to export the first commercial shipment of CBD:THC balanced formulations. Blueberries is currently navigating regulatory requirements to finalize this operation and enter into a commercial arrangement with one of Brazil's largest compassionate use brands.

3. Joint venture agreement:

• Blueberries has signed a transformative joint venture agreement with Allied Corp., a renowned industry player, to expand its product offering and global market presence.
• By combining Allied's expertise in premium-quality flower production with Blueberries' state-of-the-art extraction facilities, the companies will collaborate on sales efforts and optimize production capabilities.
• This strategic partnership enables Allied to offer high-quality derivative-based products in the markets it currently distributes, expanding its global footprint. The companies' clients and supply channel partners span five continents, including Australia, Europe, Asia, South America and North America.

4. Termination of farmland purchase agreement:

• On April 5, 2023, the company made the decision to terminate the agreement to purchase farmland in Cogua (Zipaquira), Colombia. As part of the termination agreement, Blueberries will receive compensation totalling $380,776 ($281,140 (U.S.)), to be settled as follows: $243,792 ($180,000 (U.S.)) in cash on closing; transfer of 3,905,000 shares of the company owned by the seller to Terraflos, valued at $136,984 ($101,140 (U.S.)). In turn, Terraflos will pay the deemed value in cash to Blueberries by July 30, 2023.

These significant accomplishments and developments reflect Blueberries' commitment to strategic growth, innovation and delivering exceptional value to its stakeholders. The company is well positioned to seize future opportunities and maintain its trajectory of success.

Revenue breakdown and improved cost-efficiency drive strong performance

Blueberries is pleased to report its outstanding financial performance for the three months ended March 31, 2023. During this period, the company achieved a total revenue of $77,894, representing an impressive increase of $44,179 or 131 per cent compared with the comparative period. This remarkable growth can be attributed to several key factors.

Revenue growth drivers

The successful launch of the company's new product, CBD isolate, played a significant role in driving revenue growth. The market reception has been exceptional, contributing substantially to Blueberries' increased revenue.

Expansion of CBD isolate exports to countries such as Peru, Argentina and Australia, which began in the fourth quarter of 2022, has also significantly contributed to the company's revenue growth. Blueberries is delighted to see its products gaining traction in international markets.

Revenue distribution

CBD and THC derivatives, specifically Blueberries' standard oil products, accounted for 99 per cent of the company's total revenue. This highlights the strong demand for these high-quality derivatives in the market.

Extraction services contributed 1 per cent to Blueberries' revenue, showcasing the value and expertise it offers to its clients.

Cost of sales and direct cost of production

Blueberries' cost of sales and direct cost of production encompass various direct expenses related to extraction and agricultural operations, including strain management, cultivation supplies, personnel costs and allocation of fixed operational costs.

For the three months ended March 31, 2023, the company recorded costs of $67,367 for sales and $21,669 for direct production. Notably, the direct cost of production decreased by $31,918 compared with the previous year. This reduction was primarily due to strategic staffing adjustments as the company realigned its focus from cultivation to CBD and THC isolate/derivatives and extraction services. The optimization of Blueberries' operations has led to improved cost-efficiency.

Blueberries' exceptional financial performance reflects its commitment to delivering innovative products, expanding its global reach and streamlining its operations for enhanced profitability. Blueberries remains dedicated to driving growth and creating long-term value for its shareholders and stakeholders.

Achievement: significant reduction in operating expenses drives financial performance

Blueberries is thrilled to announce a remarkable achievement in its financial performance for the three months ended March 31, 2023. During this period, it successfully achieved a significant reduction in operating expenses, which had a profound positive impact on the company's overall results.

Operating expense reduction

Blueberries' operating expenses for the three-month period amounted to $25,782, showcasing a substantial decrease of $37,908 compared with the comparative period's expenses of $63,690.

This achievement is primarily attributed to the company's strategic decision to temporarily cease cultivation operations. By focusing its efforts on other core areas, Blueberries has successfully minimized the associated operating expenses.

By optimizing its cost structure and reallocating resources, the company has created a more efficient and streamlined operation, positioning Blueberries for enhanced financial performance and long-term success.

Blueberries remains committed to driving further improvements and maximizing value for its shareholders and stakeholders. The company is confident that its prudent management of operating expenses will continue to generate positive results as it navigates the dynamic landscape of the cannabis industry.

General and administrative expense

Substantial reduction in general and administrative expenses drives cost-efficiency

Blueberries is delighted to announce a significant accomplishment in its continuing pursuit of cost optimization and operational efficiency. During the reporting period, the company achieved a remarkable reduction in general and administrative (G&A) expenses, underscoring its commitment to prudent financial management.

G&A expense reduction

Total G&A expenses for the period amounted to $261,220, showcasing a substantial decrease of $59,853 or 19 per cent compared with the expenses of $321,073 incurred in the comparative period.

This achievement is a testament to the company's diligent efforts in streamlining administrative operations, identifying cost-saving opportunities and implementing efficient practices across its organization.

Nature of G&A expenses

Blueberries' G&A expenses encompass various administrative costs associated with the day-to-day operations of the company, including but not limited to office rent, utilities, professional services, software licences and other administrative overheads.

By diligently managing its G&A expenses, the company has created a leaner and more cost-efficient operational framework, enabling it to allocate resources strategically and focus on core business activities.

Blueberries remains steadfast in its commitment to driving further cost-efficiencies while maintaining the highest standards of operational effectiveness and financial discipline.

Salary, wages and benefits

Strategic cost management leads to significant reduction in salary, wages and benefits

Blueberries is proud to highlight a significant achievement in its continuing efforts to optimize its cost structure and enhance financial performance. During the three months ended March 31, 2023, the company successfully implemented strategic measures that resulted in a substantial reduction in salary, wages and benefits expenses.

Cost reduction

Total salary, wages and benefits for the period amounted to $88,184, demonstrating a remarkable decrease of $49,614 compared with the comparative period.

This achievement is a direct outcome of Blueberries' focused cost management initiatives, which include careful control of head count and resource allocation. By streamlining its work force and aligning resources with commercial and revenue-generating activities, the company has achieved significant savings in personnel-related costs.

Blueberries' commitment to prudent financial management and strategic resource allocation allows it to effectively allocate resources toward activities that drive revenue and enhance the company's overall business performance.

Audit and accounting

Audit and accounting fees include cost of audit, accounting and taxation services provided by the company's external auditor and other third parties. The decrease is due to the underaccrual of fiscal 2021 audit fees of $23,000 which was recorded in the first quarter of 2022.

Director and management fees

Director and management fees are incurred specifically for certain directors and officers of the company for services provided to Blueberries either from themselves personally or through a related entity. For the three months ended March 31, 2023, the company incurred an increase of $42,488 in director and management fees expenses, respectively, compared with the comparative period. The overall increase was due to the savings measures implemented during the COVID-19 pandemic in which the management's compensation was paused and recommenced in the last two quarters in 2022.

Share-based compensation

For the three months ended March 31, 2023, the company recognized a total of $20,694 of share-based compensation recovery, a decrease of $23,784 compared with the comparative period. The decrease is primarily due to the lower valuation of each option granted and vested in the period compared with the comparative period.

Other matters

Board appointments and key leadership changes drive growth and expansion

Blueberries is pleased to announce significant developments in its board of directors and leadership team, reflecting the company's commitment to fostering growth and maximizing its global potential. These achievements highlight the wealth of expertise and experience that will drive the company's international development.

Board appointment

Blueberries is delighted to welcome Jose Maria Forero to the board, effective May 19, 2023. Mr. Forero brings a wealth of experience and a proven record of success in sales and commercial development. As the former president of Latin American operations and a C-level executive with over 17 years of regional and global sales experience, including at Clever Leaves, Colombia's largest medical cannabis licensed producer, Mr. Forero possesses extensive knowledge of the global cannabis industry.

Mr. Forero holds an executive MBA degree from INALDE Business School and is an industrial engineer. With his operational and sales expertise, he will play a vital role in guiding the company's international expansion and driving growth in new markets.

The board member Sebastian Hochbaum has resigned his position on May 30, 2023, due to personal and professional new challenges.

Board and leadership changes

With the appointment of Mr. Forero, the board of directors now consists of five members, including chairman and interim CEO Mr. Garreton, Patricio Villalba, Catherine Lathwell, and Joaquin Barrera. The audit committee of the board is composed of Ms. Lathwell, Mr. Villalba and Mr. Garreton.

In line with these structural changes, Blueberries is thrilled to announce the appointment of Gustavo Gutierrez as the new country manager of Blueberries SAS in Bogota, Colombia. Previously serving as the company's chief operating officer, Mr. Gutierrez is a highly motivated pharmaceutical chemist with a master's degree in biotechnology. His experience in pharmaceutical quality control and his leadership within the company make him an ideal choice to lead the company's operations in Colombia.

About Blueberries Medical Corp.

Elevating the cannabis industry with innovative ingredients, Blueberries is a distinguished Latin American licensed producer and a prominent international supplier of high-quality cannabis-derived ingredients across various industries. Its core focus lies in developing and commercializing a wide range of cannabis-derived ingredients, including high and low THC, CBD and other cannabinoids, in compliance with the regulations of each destination country and specific application requirements.

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