Mr. Dale McClanaghan reports

LOTUS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS

Lotus Ventures Inc. has released its financial and operating results for the nine-month period ended May 31, 2023.

Over the last six months, Lotus has continued its Keylime Kush campaign, resulting in the launch of three Keylime Kush SKUs (stock-keeping units) in British Columbia and one in Ontario. The success of these launches has allowed the Keylime Kush to make an impactful entry into over 300 retail stores between the two provinces. With the product now thriving in the market for half a year, the company has achieved several milestones.

Sales and marketing milestones:

• On Jan. 23, 2023, the company announced the launch of its first official Lotus-branded Keylime Kush 3.5-gram flower, which is now available in British Columbia and Ontario.
• On Feb. 10, 2023, Lotus launched the Keylime Kush in a three-by-0.5-gram preroll format in British Columbia. As at the date of this news release, the prerolls have sold out several times in B.C. and continue to have strong sell through when in stock.
• On March 10, 2023, Lotus announced the approval of the 14 gram Keylime Kush flower SKU in British Columbia. The 14-gram offering was subsequently launched on April 20, 2023, and has continued to experience strong sell through.
• On March 15, 2023, Lotus announced a private company in Canada sold a portion of its Tranquil Elephantizer flower in an export shipment made to a company in Jamaica.
• On April 11, 2023, the company announced the launch of its 3.5-gram Lotus-branded flower offering in the province of Ontario. The Keylime Kush has received a strong response from retailers and consumers in the province.
• On April 20, 2023, Lotus placed in third in the ARCannabis Cup out of 128 participating licensed producers and brands in Canada.

Q3 operating overview

• Production continued steady with the company producing approximately 500,000 grams during the quarter. Production has consisted of primarily the Keylime Kush as the company continued the ramp-up of selling in B.C. and Ontario.
• During Q3, the cost of sales recognized was representative of approximately 333,000 grams of cannabis. Over the nine-month period ended May 31, 2023, cost of sales recognized was representative of approximately 1,354,000 grams.
• Lotus completed its 125th production harvest since commencing operations. As part of the company's continuing efforts to innovate and introduce new, high-quality cultivars, Lotus recently completed a phenohunt strain selection process in search of its next cultivars.
• The company has continued the IQC certification process which would enable the company to sell its flower into the Israeli market.

Summary of quarterly results

During the three months ended May 31, 2023, the company had a net loss of $340,735 (2022 -- $103,573 net loss). The financial results of the company for the eight most recent quarters are summarized in the attached table.

About Lotus Ventures Inc.

Lotus Ventures is a British Columbia-based, award-winning licensed cannabis producer and owner of the Lotus Cannabis Co. brand. Lotus is a highly experienced cultivator with its flagship product, the Keylime Kush reaching over 300 retail stores in its first six months in the market. Lotus's talented team has grown several unique and exclusive cultivars, including the Keylime Kush, Black Blossom, Tranquil Elephantizer and Kalifornia. Lotus's cannabis flower is currently available in British Columbia and Ontario.

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