Mr. John Campbell reports

BEVCANNA ANNOUNCES STRENGTHENING OF FINANCIAL POSITION WITH LOANS AND DEBT SETTLEMENT; COMPANY STRENGTHENS FINANCIAL POSITION, SECURES LOAN, AND OPTIMIZES SUBSIDIARY PORTFOLIO

In line with its continued efforts to strengthen its balance sheet, Bevcanna Enterprises Inc. intends to settle debt in the aggregate amount of $3,057,715.22 owed by the company to certain creditors of the company in exchange for 87,363,286 common shares at a deemed price of 3.5 cents per debt settlement share.

The company also announces that its wholly owned subsidiary, Naturo Group Enterprises Inc., closed a $320,000 secured promissory note private placement financing. The loan is due in 12 months and bears interest of 15 per cent per annum, payable on closing. Repayment of the promissory note is due on the earlier of the maturity date.

The company also announces that its wholly owned subsidiary, Naturo, received a $100,000 short-term mortgage loan from a third party. The loan is secured with a second charge on Naturo's land and property at Bridesville. The loan is due in 12 months and bears interest of 15 per cent per annum.

The company also announces that it completed the voluntary dissolution of its wholly owned subsidiary Embark Woodstock Inc. on Dec. 4, 2023, which had no assets before dissolution. This strategic move aligns with the company's continuing optimization efforts.

The proposed debt settlements with Martino Ciambrelli and Bruce Dawson-Scully are related-party transactions within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The settlements are exempt from the valuation requirement of MI 61-101 by virtue of the exemptions contained in Section 5.5(b) of MI 61-101 as the company's common shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61-101 in that the fair market value of the settlements will not exceed 25 per cent of the company's market capitalization. As the material change report disclosing the settlements is being filed fewer than 21 days before the transaction, there is a requirement under MI 61-101 to explain why the shorter period was reasonable or necessary in the circumstances. In the view of the company, it is necessary to immediately close the settlements, and therefore, such shorter period is reasonable and necessary in the circumstances to improve the company's financial position.

About Bevcanna Enterprises Inc.

Bevcanna (Canadian Securities Exchange: BEV, OTC: BVNNF and Frankfurt Stock Exchange: 7BC) is a diversified lifestyle and wellness consumer packaged goods company. Bevcanna develops and manufactures a range of alkaline, mineralized and cannabinoid beverages and supplements for both in-house brands and white-label clients.

Based in British Columbia, Canada, Bevcanna owns a pristine alkaline spring water aquifer and a high-capacity 40,000-square-foot Health Canada and hazard analysis critical control point certified flexible manufacturing facility in Osoyoos, B.C. The company's extensive distribution network includes traditional and regulated retail distribution and on-line through its market-leading brands.

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