Mr. Dale McClanaghan reports

LOTUS ANNOUNCES FIRST QUARTER FISCAL 2023 RESULTS

Lotus Ventures Inc. has released the financial results for the period ended Nov. 30, 2022.

First quarter 2023 corporate overview

The first fiscal quarter of 2023 was a transitional period for the company as it continued the diversification of its sales channels and partners. The company started working with local companies in British Columbia to expedite its product launch schedule. The company's business-to-business wholesale model allows Lotus to supply its flower to wholesale partners with brands in the medical and recreational markets in Canada. The company currently has one flower and one preroll SKU of the Keylime Kush listed under the Lotus brand in British Columbia and another several SKUs listed by wholesale partners using the Lotus Tranquil Elephantizer and Black Blossom flower. The following highlights its progress during the quarter ended Nov. 30, 2022:

• On Oct. 6, 2022, the company appointed Albert Duwyn as chairman of the board. Mr. Duwyn is an early supporter of Lotus and is one of the company's largest shareholders.
• Lotus received approval for direct-to-store delivery sales in British Columbia. During the quarter, the company sold dried flower on a wholesale basis, which was then delivered to retail stores by a wholesale partner in British Columbia.
• Lotus completed the production and development of its new exclusively grown Keylime Kush and Black Blossom cannabis strains. The company expects the new strains to be sold in multiple provinces in 2023, and has received positive initial test results for cannabinoid and terpene content.

Q1 2023 sales and marketing overview:

• As of the date of this news release, Lotus is selling its Keylime Kush in British Columbia, and its Black Blossom in B.C. and Alberta in collaboration with a wholesale partner. The Lotus flower is being used in 3.5-gram and seven-gram flower offerings, as well as in prerolls.
• The Lotus Tranquil Elephantizer is being sold at select retailers in B.C., and the Lotus Kalifornia is listed in Ontario. The Lotus Tranquil and Kalifornia flower is being used in flower and preroll offerings.

Q1 2023 operational overview:

• During the quarter, Lotus completed its 105th production harvest since commencing operations. The company is growing its new strains regularly now and has started the phenohunt process in search of its subsequent strains. The company has found operational success regarding control and consistency with its controlled environment agriculture (CEA) method of indoor hydroponic cannabis cultivation.
• The recently grown premium Lotus Keylime Kush and Black Blossom are both first-to-market strains in the legal Canadian market and are expected to test in the range of 24 per cent to 30 per cent in tetrahydrocannabinol content and between 2.5 per cent and 3.5 per cent in terpene content. Initial test results have been received as expected.
• As at Nov. 30, 2022, the company had approximately 1,536 kilograms of cannabis available for sale consisting of primarily the Kalifornia and Tranquil Elephantizer strains. During the quarter, cost of sales recognized was representative of approximately 70,000 grams.

Q1 financial overview:

• During the quarter ended Nov. 30, 2022, the company sold $144,000 of bulk cannabis. Subsequent to the end of the first quarter, the company initiated further wholesale relationships and also commenced selling its Keylime Kush in the B.C. recreational market.
• The company recorded a gross margin deficient of $428,000, compared with a gross margin of $437,000 during the prior-year period. The decrease in margin is a result of the industry-wide price compression in the business-to-business wholesale market.
• The company recorded a net loss of $765,000, compared with a net profit of $241,000 in the prior-year period. The company posted profitable financials through the first two years of sales as a wholesale company and has continued to evolve its multichannel sales approach as the Canadian cannabis industry has matured.

About Lotus Ventures Inc.

Lotus is a British Columbia-based licensed producer of premium cannabis. Lotus owns the premium-craft consumer brand Lotus Cannabis Co., which has had its cannabis flower sold by wholesale partners in all provinces to date. Lotus is an experienced cultivator on a mission to produce the cleanest and most consistent premium cannabis in Canada. With operations in the North Okanagan, B.C., the Lotus cannabis team has launched popular cultivars like the Keylime Kush, Black Blossom, Tranquil Elephantizer and Kalifornia, and currently has flower being sold in British Columbia, Alberta and Ontario.

To invest in the company, Lotus is listed on the Canadian Securities Exchange (J), on the OTC Markets (LTTSF) and on the Frankfurt Stock Exchange (LV9).

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