Mr. Meni Morim reports

LIFEIST'S CANNMART REPORTS GROWTH ACROSS POPULAR CATEGORIES AND NEW PRODUCT LAUNCHES

Lifeist Wellness Inc.'s subsidiary, CannMart Inc., is delivering strong sales growth and product breadth expansion from partner brands Zest Cannabis and Rilaxe. Zest has achieved average store penetration of 20 per cent across Canada, with Rilaxe achieving 30-per-cent market penetration in Manitoba and Saskatchewan, with new SKUs (stock-keeping units) expected to launch in Ontario and Quebec by the end of the year.

"I am pleased with the progress of both Zest and Rilaxe as they continue to experience sales growth and product expansion in important markets and categories," said Daniel Stern, chief executive officer of CannMart. "These two brands are playing an important role driving sales for CannMart and have become valuable additions to our growing portfolio. Zest and Rilaxe are complementary to CannMart's bestselling concentrate brand, Roilty, with Zest offering premium-quality extract-infused preroll and Liquid Diamond vape products, and Rilaxe with health-conscious dried fruit edibles and soon canna-cigar Rilaxe Berri Blunts. I look forward to continue to work with these brands to grow market share and expand beyond traditional product categories."

"Zest and Rilaxe are great additions to CannMart's brand portfolio, meeting internal targets and driving growth within their respective market categories," said Meni Morim, CEO of Lifeist. "These two leading brands are well known and cater to cannabis connoisseurs and health-conscious enthusiast alike. We look forward to the continued market growth and product expansion within the cannabis business unit."

Zest Cannabis has exhibited growth in the popular infused prerolls and extract vape categories, with the following achievements:

• Zest product sales grew at an average rate of 11 per cent month-over-month in April across Ontario, Alberta, Saskatchewan, Manitoba, Northwest Territories, Nunavut and Yukon.
• Zest's No. 1 selling SKU, Pink Lemon Liquid Diamond vape, achieved 14-per-cent month-over-month growth in April in all listed provinces since launch.
• From the brand launch, Zest has increased SKU count in the two largest cannabis markets:
  • Alberta now offers 10 SKUs, including four Liquid Diamond vapes and six infused preroll multipacks;
  • Ontario offers five SKUs, including two Liquid Diamond vapes, two multipack infused prerolls and one infused milled flower.
• Zest achieved store penetration of 25 per cent in Manitoba and Saskatchewan, while Alberta and Ontario experienced store penetration of 16 per cent, with a combined increase of 130 stores in the last 15 days.

Rilaxe has also experienced success across Canada, and plans to expand its product range by Q4 2023, including:

• The launch of seven SKUs in Quebec early in Q4 2023, featuring additional dried fruit and vegetable products with a 2:1 tetrahydrocannabinol to cannabidiol ratio plus bulk CBD products.
• In Ontario, Rilaxe will expand its offerings with a retro pop culture-inspired edibles collection, including 1:1 sour peach, 1:1 sour cherry and an exciting spicy orange rice cracker, 1:1 spicy firecrackers.
• Rilaxe will also enter the fast-growing canna-blunts subcategory with its Berri Blunts (0.7-gram three-pack) prerolls.

Lifeist continues to make strides in the cannabis market through the success of its subsidiary, CannMart, and the growth of partner brands Zest Cannabis and Rilaxe. The company remains dedicated to providing innovative and high-quality wellness solutions to its consumers.

About Lifeist Wellness Inc.

Sitting at the forefront of the postpandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include: CannMart, which operates a business-to-business wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards, including for CannMart Labs, a BHO extraction facility producing high-margin cannabis 2.0 products; Australian Vapes, one of Australia's largest on-line retailers of vaporizers and accessories; and Mikra, a biosciences and consumer wellness company developing and selling innovative therapies for cellular health.

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