Mr. Philip Campbell reports

HERBAL DISPATCH EXPANDS HOUSE OF BRANDS STRATEGY WITH LAUNCH OF NORTHERN DRIP EXTRACTS

Herbal Dispatch Inc. has launched its new mid-to-premium cannabis extracts brand, Northern Drip, expanding the company's presence in one of the fastest-growing segments of the Canadian cannabis market. Northern Drip represents Herbal Dispatch's fifth in-house brand launch, joining the company's growing portfolio alongside Buzz, Happy Hour, Nu and Chomp.

Designed for concentrate consumers and extract enthusiasts, Northern Drip offers a curated lineup of potent, terpene-rich products, including premium concentrates, hash, vape cartridges and other extract-based formats. The brand is positioned to deliver high-quality cannabis experiences at accessible pricing, targeting growing consumer demand for high-tetrahydrocannabinol and flavour-forward products.

Cannabis extracts continue to represent one of the largest and fastest-growing categories in the Canadian cannabis market, with inhaled extracts -- including vape cartridges, hash, wax and rosin -- generating approximately $1.7-billion in Canadian retail sales in 2024/2025, representing approximately 31.1 per cent of total cannabis sales nationally.

Inspired by Canada's northern landscapes and craft cannabis culture, Northern Drip features products derived from premium genetics and produced using high-quality extraction methods focused on terpene preservation, potency and consistency. The initial lineup includes solventless hash rosin, live resin concentrates, strain-specific vape cartridges and other unique products for experienced consumers. Products within the Northern Drip line are expected to range from approximately 70 per cent to greater than 90 per cent THC.

Cannabis extracts continue to represent one of the fastest-growing and highest-margin categories in the Canadian cannabis market, driven by increasing consumer demand for potent, discreet and convenience-oriented formats. Through Northern Drip, Herbal Dispatch intends to expand its footprint within this category while leveraging its existing medical, recreational and wholesale distribution channels. The Northern Drip launch strengthens its broader house-brand strategy and supports long-term margin expansion through differentiated proprietary products.

"We are excited to launch Northern Drip as part of our continued expansion into high-growth cannabis categories. Extract consumers are increasingly looking for premium experiences, high potency and authentic terpene profiles, and we believe Northern Drip is well positioned to meet that demand," commented Philip Campbell, chief executive officer of Herbal Dispatch. "This launch also reflects our broader strategy of developing scalable in-house brands that strengthen customer loyalty, improve margins, and expand our product offering across both recreational and medical channels."

Northern Drip products are available through Herbal Dispatch's on-line platforms and select wholesale partners across Canada. The company expects to continue expanding the Northern Drip portfolio over time, including additional extract formats, infused products and other derivative cannabis categories.

About Herbal Dispatch Inc.

Herbal Dispatch is a leading operator of cannabis e-commerce platforms in Canada, delivering quality medical and recreational products to discerning consumers at competitive prices. Its flagship marketplace has earned trust as a premier destination for exclusive access to small-batch craft cannabis and a wide selection of curated cannabis products. The company is also actively expanding through exports to international markets, positioning it for sustained growth and new revenue opportunities. The company's common shares trade on the Canadian Securities Exchange under the symbol HERB.

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