Mr. Mark Aiken reports

CHRISTINA LAKE CANNABIS CLOSES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Further to the press release dated April 23, 2025, Christina Lake Cannabis Corp. has closed the first tranche of a non-brokered private placement of units, with each unit consisting of one common share in the capital of the company and one-half of one common share purchase warrant, in the principal amount of $1,138,910.55.

The company issued 22,778,211 units at a price of five cents per unit under the closing of the first tranche, which were in the form of a debt settlement of principal and accrued interest due to the existing holders of convertible debentures. No finders' fees were paid in connection with the first closing of the offering.

The offering is subject to the receipt of all required regulatory approval, including acceptance of the Canadian Securities Exchange. All securities issued in connection with the offering will be subject to a hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws. The company expects to complete an additional closing or close on or prior to May 30, 2025.

Certain directors and officers of the company subscribed for an aggregate of 21,524,011 units and gross proceeds of $1,076,200.55 under the first tranche of the offering. Such participation will be considered to be a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company anticipates relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related-party transactions under sections 5.5(b) and 5.7(1)(b), respectively, of MI 61-101, as neither the fair market value of the shares to be acquired by the participating directors and officers, nor the consideration to be paid by such directors and officers is anticipated to exceed $2.5-million.

About Christina Lake Cannabis Corp.

Christina Lake Cannabis 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 Cannabis's facilities consist 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, and a 342-acre property, which includes approximately 100 acres of licensed outdoor grow space, greenhouses and a dry room. Christina Lake Cannabis also owns a 99-acre plot of land adjoining its principal site. Christina Lake Cannabis 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.

We seek Safe Harbor.