Mr. Dale McClanaghan reports

LOTUS VENTURE: UPDATE ON PROPOSAL TRANSACTION

Lotus Ventures Inc. has provided an update on the transaction previously announced on May 17, 2024.

On July 29, 2024, the company obtained a partial revocation order issued by the British Columbia Securities Commission (the partial revocation order) relating to the cease trade order issued to the company on April 4, 2024, for failure to file certain outstanding continuous disclosure documents (the CTO). The partial revocation order partially revokes the CTO to allow for the completion of the transaction. The CTO continues to apply in all other respects.

In addition, as previously noted, the transaction under the company's proposal to its creditors, as amended, and the subscription agreement dated May 3, 2024, with 5008679 Ontario Ltd., as amended and restated on June 4, 2024, and further amended on July 15, 2024, are to be completed in accordance with its terms, and the provisions of a reverse-vesting order (the RVO) to be granted by the Supreme Court of British Columbia In Bankruptcy and Insolvency. On June 14, 2024, the company obtained the RVO.

The company intends to proceed with the transaction, which is expected to close in July or August, 2024. The closing is still subject to closing conditions.

About Lotus Ventures Inc.

Lotus Ventures is a British Columbia-based licensed cannabis producer. Lotus grows premium cannabis which is carried in retail locations across British Columbia and Ontario.

We seek Safe Harbor.