Mr. Randy Ko reports

HEMPSANA PROVIDES BI-WEEKLY UPDATE ON STATUS OF MANAGEMENT CEASE TRADE ORDER

Hempsana Holdings Ltd. is providing a biweekly default status update in accordance with National Policy 12-203 (Management Cease Trade Orders).

In press releases dated April 21, 2023, and May 4, 2023, the company announced that it submitted an application to the B.C. Securities Commission, the company's principal regulator, for a management cease trade order in connection with the company's delay in filing its audited annual financial statements for the year ended Dec. 31, 2022, and the management's discussion and analysis, and related chief executive officer and chief financial officer certificates for the period, which were required to be filed on or before May 1, 2023.

The MCTO was issued by the BCSC on May 3, 2023. It prevents the company's CEO and CFO from trading in the company's securities but does not affect the ability of other shareholders, including the public, to trade in the securities of the company.

As previously announced, the delay in filing the required filings is a consequence of a recent change of auditor. In December, 2022, the company learned that its former auditor would be increasing its fees significantly and required payment terms beyond the financial ability of the company. Despite undertaking a search for a new auditor, the limited number of available auditing firms available to service cannabis clients posed a challenge. As a result of the short time period to the filing deadline, the company and its current auditor require more time to complete the required filings.

The MCTO remains in effect until the company files the required filings and the BCSC's executive director has revoked the MCTO. The company anticipates that it will file the required filings on or before June 1, 2023. The company confirms that since the date of the default announcement, other than as described above: (a) there has been no material change to the information set out in the default announcement that has not been generally disclosed; (b) there has been no failure by the company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (c) there has not been, nor is there anticipated to be, any specified default subsequent to the default, which is the subject of the default announcement; and (d) there is no other material information concerning the affairs of the company that has not been generally disclosed.

The company confirms that it will continue to satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing biweekly default status reports in the form of news releases for so long as it remains delayed in filing the required filings.

About Hempsana Holdings Ltd.

The company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products and other infused consumables. Hempsana's Health Canada standard processing licensed and European Union good manufacturing practice compliant facility provides the company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including cannabis concentrates, diamonds, tablets, topicals, tinctures, salves, infused prerolls and hemp-based cannabidiol products that are all manufactured and distributed by Hempsana.

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