Mr. Stephen McCoach reports

IMPERIAL GINSENG PRODUCTS LTD. ANNOUNCES CASH DISTRIBUTION

Imperial Ginseng Products Ltd. has declared a cash distribution of $2.25 per common share to the holders of record at the close of business on Jan. 12, 2024, payable on Jan. 26, 2024. Because the distribution is greater than 25 per cent of the trading price of the company's common shares on the declaration date, it will be subject to the due bill trading requirements of the TSX Venture Exchange. Accordingly, the exchange requires that the company's shares trade on a due bill basis from Jan. 11, 2024, to Jan. 26, 2024, inclusive. This means that sellers who sell shares during the due bill period will also sell their entitlement to the distribution. The company's shares will trade on an ex distribution basis (without an attached due bill entitlement to the distribution) from the opening of trading on Jan. 29, 2024. The due bills will be redeemed on Jan. 30, 2024, once all trades with attached due bills entered during the due bill period have settled.

Until the year ended June 30, 2023, the company's principal business was cultivating, processing and selling ginseng. In 2020, the company announced that it would wind up its ginseng operations and dispose of all the farm assets, which was completed in the summer of 2023. At a special meeting of shareholders held on Aug. 15, 2023, the company received approval to make a distribution from the proceeds of the windup to shareholders.

The company anticipates that Subsection 84(2) of the Income Tax Act (Canada) will apply to the distribution. Subsection 84(2) of the Act provides, in effect, that a distribution made to shareholders on a winding-up, discontinuance or reorganization of the company's business will not be taxed as a dividend so long as the amount or value of the funds distributed does not exceed the amount by which the paid-up capital, as defined for the purposes of the act, of the relevant shares is reduced on the distribution. However, the amount of the reduction of paid-up capital will reduce the adjusted cost base of a shareholder's shares by a like amount. If the amount so required to be deducted from the adjusted cost base of the shares to a particular shareholder exceeds its adjusted cost base of such shares for purposes of the act, the excess will be deemed to be a capital gain realized by such shareholder from a disposition of the shares. For a more detailed description of the tax consequences of the distribution, shareholders are encouraged to refer to the section titled "Certain Federal Income Tax Considerations" in the company's management information circular, dated July 4, 2023 (available on SEDAR+).

Neither this news release nor any previous correspondence from the company, including the management information circular, shall be construed as tax or legal advice to any shareholder of the company. The company will not be able to provide any further tax information, including providing a shareholder adjusted cost base, to any shareholder and further, the company strongly advises shareholders to consult with their own accountants and/or tax advisers to determine their adjusted cost base and their specific tax consequences.

The distribution described in this news release is the one and only distribution from liquidating the company's ginseng business.

About Imperial Ginseng Products Ltd.

The company is currently seeking new business opportunities and remains committed to providing investors with future value.

We seek Safe Harbor.