Mr. John Campbell reports

BEVCANNA ANNOUNCES CLOSING OF DEBT SETTLEMENT

Bevcanna Enterprises Inc., further to its press release dated Dec. 8, 2023, has settled 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.

Of the 87,363,286 debt settlement shares issued pursuant to the debt settlement, 79,075,502 debt settlement shares are subject to a statutory hold period of four months plus one day.

The 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 related-party 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 related-party settlements will not exceed 25 per cent of the company's market capitalization. As the material change report disclosing the related-party settlements is being filed less 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 related-party settlements and, therefore, such shorter period is reasonable and necessary in the circumstances to improve the company's financial position.

The company also announces that it filed for voluntary bankruptcy of its majority-owned subsidiary, Naturo Springs Inc., on Dec. 12, 2023, which currently has no assets. This strategic move aligns with the company's continuing optimization efforts.

About Bevcanna Enterprises Inc.

Bevcanna Enterprises 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 HACCP 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.