Mr. Albert Duwyn reports

LOTUS ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED TRANSACTIONS

Lotus Ventures Inc. has closed the previously announced transaction contemplated by the company's proposal to its creditors, as amended, and the company's subscription agreement dated May 3, 2024, with 5008679 Ontario Ltd. (the purchaser), as amended and restated on June 4, 2024, and further amended on July 15, 2024. The transaction was completed in accordance with the terms of the agreement and the provisions of a reverse-vesting order granted by the Supreme Court of British Columbia In Bankruptcy and Insolvency on June 14, 2024 (the RVO).

As part of the completion of the transaction, the company has issued to the purchaser 1,000 common shares of the company (the subscribed shares) for an aggregate, all-inclusive purchase price of $2,538,398.00 and all of the previously issued and outstanding securities of the company (other than the subscribed shares) have been cancelled without consideration. The purchaser, located at 1662 Valley Close, Burlington, Ont., L7P 4W4, is now the sole securityholder of the company. Prior to the transaction, the purchaser held, directly or indirectly, 7,003,733 common shares of the company, representing 6 per cent of the issued and outstanding common shares of the company.

Lotus is expected to be delisted from the CSE effective at the close of trading on Aug. 20, 2024, and is expected to be concurrently delisted from the OTC markets. Lotus also expects to make an application to seek full revocation of the failure-to-file cease trade order issued on April 4, 2024, and to cease to be a reporting issuer in each of Alberta, British Columbia and Ontario.

Further information regarding the proposal and the agreement, including copies thereof, can be accessed through the website hosted by MNP Ltd., in its capacity of proposal trustee of Lotus in the proposal proceedings.

This disclosure is also issued pursuant to Multilateral Instrument 62-104 -- Take-Over Bids and Issuer Bids, which requires an early warning report to be filed containing additional information with respect to the foregoing matters. A copy of the early warning report will be made available on SEDAR+ under Lotus's profile at SEDAR+. To obtain a copy of the early warning report, or further information, please contact Albert Duwyn, president of Lotus, at 416-460-7058.

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 B.C. and Ontario.

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