Mr. Mark Aiken reports

CHRISTINA LAKE CANNABIS ANNOUNCES DELAY IN FILING ITS 2023 ANNUAL FINANCIAL STATEMENTS

Christina Lake Cannabis Corp. will not file its annual financial statements, accompanying management's discussion and analysis, and related chief executive officer and chief financial officer certifications for the financial year ended Nov. 30, 2023, within the period prescribed for the filing of such documents under parts 4, 5 and 6 of National Instrument 51-102 (Continuous Disclosure Obligations) and pursuant to National Instrument 52-109 (Certification of Disclosure in Issuers' Annual and Interim Filings), namely within 120 days of year-end, being March 31, 2024.

The delay at Christina Lake is due to the fact that the audit is taking longer than expected, due to the high level of testing, with limited staff resources. As the company's material item on its balance sheet is inventory and biological assets, and due to the increased production levels of the past year and additional product lines introduced, the costing and inventory allocation are taking longer than originally anticipated. Further, the financings completed by the company in the fourth quarter of the fiscal year and the property acquisition completed earlier in 2024 have also increased the work level required for the audit, which requires additional time to ensure accuracy for the financial statements.

Christina Lake is working closely with its auditor DMCL LLP, is making every effort to submit the annual filings in a timely fashion and expects to file no later than May 31, 2024.

Christina Lake chief executive officer Mark Aiken made the following statement, "We support the provision of extra time to allow auditors to satisfactorily complete the 2023 audit and ensure that their financial statements are accurate in all respects."

The company is providing this default announcement in accordance with National Policy 12-203 (Management Cease Trade Orders). The company has made an application to the B.C. Securities Commission, as principal regulator of the company, for a management cease trade order under NP 12-203 in respect of the default regarding the annual filings. The MCTO will prohibit the CEO and the CFO from trading in securities of Christina Lake for so long as the annual filings are not filed. The issuance of the MCTO, if issued, does not affect the ability of persons other than the CEO and the CFO of the company to trade in the company's securities. The application for the MCTO remains subject to risk factors, including the risk that the MCTO application may not be successful or may not be completed prior to a securities commission issuing a failure-to-file cease trade order against the company following the filing deadline.

The company confirms that it intends to satisfy the provisions of the alternative information guidelines found at sections 9 and 10 of NP 12-203 respecting cease trade orders for continuous disclosure defaults for so long as it remains in default as a result of the late filing of the annual filings. During the period of default, the company will issue biweekly default status reports in the form of further news releases, which will also be filed on SEDAR+. The company confirms that there are no insolvency proceedings against it as of the date of this news release. The company also confirms that there is no other material information concerning the affairs of the company that has not been generally disclosed as of the date of this news release.

About Christina Lake Cannabis Corp.

Christina Lake is a licensed producer of cannabis under the Cannabis Act. It has secured a standard cultivation licence and corresponding processing amendment from Health Canada (March, 2020, and August, 2020, respectively) as well as a research and development licence (early 2020). 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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