Mr. Mark Aiken reports

CHRISTINA LAKE CLOSES THIRD TRANCHE OF NON-BROKERED PRIVATE PLACEMENT OF SECURED CONVERTIBLE NOTES

Further to the press releases dated Sept. 7, Sept. 12 and Sept. 25, 2023, Christina Lake Cannabis Corp. has closed the third and final tranche of a non-brokered private placement of secured convertible promissory notes in the principal amount of $294,000.

All securities issued pursuant to the offering are subject to a statutory four-month-and-one-day hold period from the date of issuance pursuant to applicable securities laws of Canada.

Proceeds from the offering will be used for repayment of outstanding debentures, working capital and general corporate purposes.

The third tranche concludes the company's non-brokered private placement of notes with total gross proceeds under all three tranches being an aggregate of $4,238,000.

Multilateral Instrument 61-101 disclosure

Certain insiders of the company participated in the third tranche of the offering for an aggregate total of $298,000 in notes. The participation by such insiders is considered a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(b), respectively, of MI 61-101, as no securities of the company are listed or quoted on the Toronto Stock Exchange, Aequitas NEO Exchange Inc., the New York Stock Exchange, the American Stock Exchange, the Nasdaq Stock Market or a stock exchange outside of Canada, and neither the fair market value of the notes to be acquired by the participating directors and officers, nor the consideration to be paid by such directors and officers exceeds $2.5-million. The company did not file a material change report more than 21 days before the expected closing of the offering as the details of the participation therein by related parties of the company were not settled until shortly prior to closing of the first tranche of the offering and the company wished to close on an expedited basis for sound business reasons.

About Christina Lake Cannabis Corp.

Christina Lake is a licensed producer of cannabis under the Cannabis Act with a standard cultivation licence and corresponding processing amendment from Health Canada, as well as a research and development licence. Christina Lake's facility consists of a 32-acre property, which includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction. Christina Lake also owns a 99-acre plot of land adjoining its principal site. Christina Lake focuses its production on creating high-quality extracts and distillate for its business-to-business client base with proprietary strains specifically developed for outdoor cultivation to enhance extraction quality.

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