An anonymous director reports

GLOBAL HEMP GROUP PROVIDES UPDATE

Global Hemp Group Inc. has provided a corporate update on the business of the company.

The company is focused on two business segments: (1) industrial hemp, including, but not limited to, renewable construction materials; and (2) natural biologic therapeutics relating to the exclusive licensing of patents and intellectual property from Apollon Formularies PLC.

Update on the Apollon transaction

On Jan. 9, 2023, the company executed a binding letter of intent with Apollon, a United Kingdom-based international pharmaceutical company developing cancer treatments from natural biologics, including cannabinoids, functional mushrooms, psychedelic mushrooms and combinations of these compounds, which to date have shown successful independent, third party results in preclinical testing, and utilize an artificial-intelligence-based drug discovery platform.

Under the terms of the LOI, Global Hemp acquired the exclusive perpetual licence for North America (the United States, Canada and Mexico) to certain Apollon intellectual property and proprietary technology, including, but not limited to, four key patents, including any continuations, divisional and continuations in part, along with any and all associated preclinical and clinical data relating to the patents and proprietary technology. The exclusive licensing has since been expanded for two of the four patents to include the European Union with extension to Morocco and Israel. Per the terms of the LOI, the company was also granted an option to acquire the entirety of Apollon's global assets upon completion of mutual due diligence. The parties have made the joint decision not to proceed with acquisition of Apollon's assets, but rather to work together going forward to sublicense the exclusively licensed Apollon intellectual property, thereby making the Apollon products available in legal jurisdictions throughout North America (the United States, Canada and Mexico) and the European Union with extension to Morocco and Israel.

Update on sublicensing of Global Hemp's exclusive intellectual rights

On April 28, 2023, the company announced that it had issued its first non-exclusive sublicence to Medicinal One LLC, a corporation created specifically to launch on-line e-commerce sales of the Apollon-branded products, including both functional mushroom and hemp-based products throughout the United States, where legal. This will include Apollon's unique patent-pending mushroom/hemp-based combination product line. Management identified a U.S. manufacturer which has provided samples and pricing of the required Apollon formulations. All parties have signed off on the final products, and the company has been advised that the sublicensee is in the process of completing its first order.

Initiative to produce affordable, carbon-negative, hemp-based housing in Quebec

On April 26, 2023, the company announced that it was looking to expand its continuing hemp-related business endeavours and had embarked on an initiative to combine hemp-based construction with affordable housing to create carbon-negative affordable housing in the Victoriaville area in Quebec. Initial financing for the project was in the form of a grant that had been submitted into Canada Mortgage and Housing Corp.'s Round 4: Housing Supply Challenge, Building for the Future: Innovative Construction for Housing Affordability, with the successful applicants invited to participate in Stage 2 and receiving up to $150,000 to further the design and prepare a feasibility plan for the project, with the ultimate goal of receiving a share of the $37.5-million allocated to the successful applicants. Global Hemp has been notified that the company was not chosen to move forward in this grant process. In light of this development, management is analyzing how/if it would like to proceed with the project.

Update on listed issuer financing exemption private placement and other corporate matters

Further to the company's announcement of April 20, 2023, the life private placement was only available for 45 days, and it expired before any closings took place. The company will look to reinitiate a life financing in the future in compliance with National Instrument 45-106.

The company held its annual general meeting on July 28, 2023. A total of 57,981,644 common shares, representing 16.183 per cent of the 358,293,392 common shares entitled to vote, were represented in person or by proxy at the meeting.

All company matters submitted to shareholders for approval as set out in the company's notice of meeting and management information circular, dated June 21, 2023, were approved by the requisite majority of votes cast at the meeting. A copy of the company's information circular is available under the company's profile at SEDAR.

In addition to the presentation of the company's audited financial statements for the years ended Sept. 30, 2021, and Sept. 30, 2022, at the meeting: (i) the number of directors for the coming year was set at four; (ii) each nominee director set forth in the information circular was elected to the company's board as noted below; (iii) DMCL, chartered professional accountants, was reappointed as auditor for the company; (iv) a special resolution was approved authorizing the corporation to consolidate the common shares of the company at one common share for up to a maximum of 25 common shares for a period until the next meeting of shareholders; and (v) reapproval of the company's 10-per-cent rolling stock option plan was confirmed.

Aurelio Useche, Veronique Laberge, Stephen Barnhill Jr. and Curt Huber were re-elected as directors of the company. Rachel Lu has been appointed chief financial officer, and Curt Huber has been appointed interim president and chief executive officer as Mr. Barnhill has resigned from his interim role as CEO to pursue personal endeavours. Mr. Huber will remain in the senior executive role until such time as a new CEO is appointed.

About Global Hemp Group Inc.

Global Hemp (Canadian Securities Exchange: GHG/OTC: GBHPF/Frankfurt Stock Exchange: GHG) is focused on developing and promoting hemp-based products that are sustainable and environmentally friendly, and have a positive impact on society. To further support and innovate, Global Hemp has established a research and development division to actively pursue the development of intellectual property that can be patented for implementation at its projects and beyond. The division is led by Prof. Victor M. Castano, PhD, whose career has focused in the areas of applied science and technology. The R&D team is initially focused on development of environmentally friendly construction materials, nano fertilizers and enhanced cannabinoid extraction from hemp.

We seek Safe Harbor.