Mr. Travis McIntyre reports

CANADABIS CAPITAL, WITH SUB STIGMA GROW, ANNOUNCES FISCAL Q2 2024 RESULTS HIGHLIGHTED BY CONTINUED POSITIVE ADJUSTED EBITDA(1) AND NET INCOME

Canadabis Capital Inc. has released results from its second quarter fiscal 2024, represented by the company's 10th consecutive quarter generating net revenue. The company's financial statements and notes, as well as Management's Discussion and Analysis ("MD&A") are filed on SEDAR at www.sedarplus.ca.

This quarter reflects another period generating positive earnings and Adjusted EBITDA1 for Canadabis, despite a 26% decrease in gross revenue over the same period the prior year due to increased competition in the market, and the resultant price compression. In response, the company has allocated capital to innovation designed to remain ahead of competitors and to expand the SKU offering by adding multiple new products for future release. To support the company's product enhancement initiatives, we have adjusted our strategy to increase brand awareness and capture market share through an extensive nation-wide campaign designed to equip retailers with enhanced awareness of the various SKUs, programs and educational value-adds to Canadabis' wide variety of high-quality, lower-cost products. While such investments can have an impact on results in the immediate quarters, reinvesting in the business is critical to support the company's top and bottom line over the longer-term.

Stigma Grow continues to re-formulate concentrate lines to meet demands from current clients to maintain larger terpene and cannabinoid profiles across the product offerings while also earning repeat sales. With these ongoing improvements, coupled with demand for our award-winning Infused Pre-rolls, Electric Dartz, Live Rosin Vapes and High-CBD Cartridges, Canadabis anticipates continued positive performance in Fiscal 2024, while maintaining prudent financial management.

"Building on momentum realized in Q1 2024, I am proud to report that our second fiscal quarter represents another period of positive net revenue, earnings and adjusted EBITDA, reflecting our resilience despite a significant increase in competition and meaningful price compression as cultivators and processors reposition themselves in the market," said Travis McIntyre, CEO of Canadabis. "Both in fiscal Q2 and Q3 2024, we are directing investment to enhance our product offering, while also launching a comprehensive nation-wide retail-focused marketing campaign that leverages existing brand awareness. Our goal is to increase the profile of established brands while supporting the introduction of at least 17 exciting new SKUs that we anticipate will increase sales in subsequent quarters. With our unique capabilities and consumer-centric value proposition, the company has earned brand loyalty that positions us well to drive continued shareholder value creation in an industry rife with competition and continued regulatory challenges."

Q2 2024 HIGHLIGHTS

Major Growth in Cultivation and Wholesale Segment - Net revenue from the Cultivation and Wholesale segment for Q2 2024 was $0.7 million compared to $0.03 million for the corresponding period in 2023, representing over 2000% growth. Several specialized SKU launches in the provinces contributed to this increase, including the Super Slim Cigarette Style Pre-roll and milled flower, positioning Canadabis in a niche category of providing high quality, yet affordable, products. This new product is expected to increase sales throughout fiscal 2024, along with new dry flower brands and yet-to-be released SKUs. For the six months ended Jan. 31, 2024, net revenue in the segment increased to $1.5 million from $0.07 million in the corresponding period of 2023.

New Products Remain Critical to Continued Success - In tandem with enhanced marketing efforts focused on increasing awareness of the Dab Bods brand, the company intends to introduce a minimum of 17 new SKUs to the market through the coming quarters. Leveraging the company's existing brands and unique products, such as our infused and non-infused Super Slim Cigarette Style Pre-Rolls, the "Electric Dartz", affords a stable platform on which to launch exciting new brands and SKUs.

Continued Profitability - Adjusted EBITDA1 totaled approximately $0.5 million, while net income totaled $0.11 million after tax in Q2 2024, representing the tenth consecutive quarter of profitability.

Cost Management Remains a Sharp Focus - The company continued to actively manage input expenses and inflationary pressures through negotiations and economies of scale, securing cost savings while increasing operational efficiencies and expanding yields in cultivation and extraction. Cost management plans remain in focus, along with initiatives designed to increase efficiencies, improve cash flow and enhance liquidity.

OUTLOOK

With ongoing year-over-year profitability and cost controls realized to date in Q2 2024, Canadabis has set the stage to continue delivering positive results by capitalizing on the budding cultivation and wholesale segment, while reinvesting to refresh extract brands and effectively navigate a rapidly evolving, and highly competitive cannabis industry.

The company has established several competitive advantages to ensure long-term success, which will be leveraged in the ongoing marketing campaign, including offering top-quality extracts derived through our butane hydrocarbon (BHO) extraction process, first of a kind Infused Pre-Rolls and Super Slim Cigarette Style Electric Dartz Pre-Rolls. Investment in new formulations that can meet demand and support the diversification of the company's product offerings increased in the current quarter, while rising demand from Manitoba for both new and existing products has broadened the market. The company is pleased to confirm that Dab Bod and High Priestess products continue to attract greater market share reflecting the success of our ongoing marketing efforts.

As a vertically integrated cannabis organization, the company brings unique insights and the ability to respond swiftly to external factors that may impact selling prices, input costs or shifting customer demands. With an unwavering commitment to strategic capital management, the extensive Canadabis portfolio will represent a platform on which to support future growth. The company intends to allocate capital to further develop innovative products that optimally align with consumer preferences, while ensuring strong brand recognition in order to capture increased market share.

The company remains committed to shareholder value creation, by actively pursuing growth opportunities; remaining agile to react swiftly within a volatile cannabis market; and consistently striving to improve quality and operational standards. Canadabis looks forward to sharing further updates on our continued progress and success during the second half of 2024, and appreciates the support of all shareholders, the Board of Directors and dedicated employees.

ABOUT CANADABIS CAPITAL INC.

Canadabis Capital Inc. (TSXV:CANB) is a vertically integrated Canadian cannabis company focused on achieving large-scale growth, from cultivation to retail, in the fast-emerging global cannabis market. By targeting organic growth opportunities alongside the right-fit partners, we remain focused on finding and capitalizing on chances to grow, diversify and continue to lead our industry.

Our integrated subsidiaries:

Stigma Pharmaceuticals Inc. - 100% held 1998643 Alberta Ltd. (operating as "Stigma Grow") - 100% held; www.stigmagrow.ca

Full Spectrum Labs Ltd. (operating as "Stigma Roots") - 100% held 2103157 Alberta Ltd. (operating as "INDICAtive Collection") -100% held; www.indicativecollection.ca

Goldstream Cannabis Inc. - 95% held

ABOUT STIGMA GROW

Stigma Grow is a cutting-edge cannabis cultivation and extraction company positioned advantageously to meet the unmet market demands and stigmas within the legal cannabis industry head on, with products designed to disturb the status quo and dramatically shift the conversation surrounding Canada's legal cannabis industry.

We seek Safe Harbor.