An anonymous director reports

GLG LIFE TECH CORPORATION ANNOUNCES FORMATION OF JOINT VENTURE WITH LUXIANG SUGAR AND XIAOGANG HEALTH

GLG Life Tech Corp. has formed a new joint venture through its Chinese subsidiary, Anhui Runhai Biotechnology Joint Stock Company Ltd.

The joint venture, operating under the name Xinjiang Huanyu Technology Co. Ltd. (Huanyu), brings together Xinjiang Luxiang Sugar Industry Co. Ltd. (Luxiang), Xiao Gang HZ Health Industrial Park (Xiao Gang) and Runhai in a vertically integrated endeavour to bring a suite of consumer natural sweetener products as well as expanded business-to-business stevia sales to the domestic China market.

Huanyu will bring together upstream agricultural resources in support of downstream production for both the business-to-business and business-to-consumer sectors, with specialization in, and integration of, harvesting to bulk manufacturing to production of a variety of end-customer products. Luxiang, located in northwest China, where the soil, water and sunlight are optimal for growing high-quality stevia leaf and other agricultural products, will produce and provide the agricultural raw materials for the joint venturers. Runhai, with its 18 years of technical expertise in manufacturing stevia products, will use this premium stevia leaf for producing its high-purity stevia extracts and other specialized stevia products -- both in support of the joint venture as well as in support of GLG's international customers. Xiaogang, with its history of producing and selling high-quality low/zero-calorie sweetener consumer products, will use raw material inputs from both Luxiang and Runhai to produce its suite of healthful consumer products. Integrating agriculture with both B2B and B2C product manufacturing streams offers Huanyu a uniquely complementary advantage in China.

Under the terms of the agreement, Luxiang, a state-owned company, will be the majority stakeholder with a 51-per-cent share. Runhai will have a 26-per-cent share, and Xiao Gang will have a 23-per-cent share. Luxiang will provide working capital for Huanyu's production needs as well as the production facilities. Runhai is providing key idle equipment from its facilities and specialized know-how in the production of stevia products leveraging a variety of steviol glycosides for sale to food and beverage companies across China. Xiao Gang has particular equipment and expertise in the natural products space that it will contribute for Huanyu's consumer products development, production and sales.

While Luxiang will be a major customer of Huanyu's, the joint venturers are planning on sales of their products to customers and companies throughout China, both off the shelf to consumers, and to food and beverage companies looking for high-quality and innovative natural sweeteners for use in their own products.

Huanyu anticipates production commencing in 2023. In the meantime, it plans to access up to 500 million renminbi from government funding available to support agricultural initiatives. This funding, if received, will help the joint venturers to fund their operation. Furthermore, in Runhai's case, this funding can be used to substantially, if not entirely, resolve long-standing debt issues, as the joint venturers have as a collective goal to clear Runhai of its debts. This will put Runhai, and consequently the company, on much more solid financial footing. Dr. Luke Zhang, the company's chairman and chief executive officer, commented: "Our new joint venture offers new and greater opportunities for GLG to access the domestic markets in China as well as to improve our company's balance sheet. We are excited to partner with Luxiang Sugar and Xiaogang Health, both ambitious companies excited to bring healthful products to our Chinese populace."

Runhai will continue producing products for GLG's international customers through its active production facilities located in Qingdao and Anhui provinces. Serving GLG's customers with high-quality products remains a central focus for Runhai and for GLG; the joint venture opportunity is entirely additive to the company's business plans.

About GLG Life Tech Corp.

GLG Life Tech is a global leader in the supply of high-purity zero-calorie natural sweeteners, including stevia and monk fruit extracts used in food, beverages and dietary supplements. GLG's vertically integrated operations, which incorporate its fairness to farmers program and emphasize sustainability throughout, cover each step in the stevia and monk fruit supply chains, including non-GMO (genetically modified organism) seed and seedling breeding, natural propagation, growth and harvest, proprietary extraction and refining, marketing, and distribution of the finished products. Additionally, to further meet the varied needs of the food and beverage, and supplement industries, GLG's Naturals Plus product line enables it to supply a host of complementary ingredients reliably sourced through its supplier network in China.

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