Mr. Zohar Krivorot of Cannara reports

CANNARA ANNOUNCES A LONG-TERM INTERNATIONAL CANNABIS SUPPLY AGREEMENT WITH CURALEAF INTERNATIONAL LIMITED

Cannara Biotech Inc. has entered into a long-term international supply agreement with Curaleaf International Ltd. for the production and supply of bulk cannabis flower destined for international markets. The agreement, if fully realized, has a potential aggregate contract value of up to $21-million over the term of the agreement, based on committed supply volumes and the terms and conditions of the agreement.

The agreement represents Cannara's first long-term supply commitment for international markets. In connection with this opportunity, Cannara has activated two additional cultivation zones at its Valleyfield facility during fiscal Q3 (third quarteR) 2026, bringing its total zones in production to 14 out of 24 grow zones of 25,000 square feet each. To meet anticipated commercial demand, the company expects to activate four additional cultivation zones by the end of fiscal 2027, which would bring the total number of activated cultivation zones to 18 out of 24. Once complete, this expansion is projected to increase annual production capacity to 75,000 kilograms (kg), enabling Cannara to reach its targeted production capacity approximately one year ahead of its original fiscal 2028 timeline.

Curaleaf is a leading international provider of consumer cannabis products, with an established distribution network across Europe, the United Kingdom, Canada and Australasia. The agreement provides Cannara with access to international medical cannabis markets through a commercial relationship with one of the sector's leading global operators, further validating the company's cultivation platform, product quality and ability to scale.

The agreement is long-term, commencing Aug. 1, 2026, with a provision for renewal upon mutual agreement. As part of the agreement, Curaleaf will support Cannara's pursuit of EU-GMP (European Union Good Manufacturing Practice) certification of its processing centre at the Valleyfield facility. In the interim, all cannabis flower supplied under the agreement will be fully dried and processed under EU-GMP conditions at Curaleaf's EU-GMP certified facility in Canada prior to release into international medical markets. EU-GMP certification is widely recognized across European medical cannabis markets and is expected to further facilitate Cannara's ability to supply products into Europe.

"We are pleased to enter into this supply relationship with Cannara, a company that has built an impressive cultivation platform supported by a strong operating team and a clear commitment to quality," said Boris Jordan, chairman and chief executive officer of Curaleaf.

"This agreement represents a key milestone in our growth strategy and our first long-term supply commitment for international markets," said Zohar Krivorot, founder and chief executive officer of Cannara. "Partnering with a global leader like Curaleaf validates the quality of our cultivation, the strength of our team and the foundation we have built at Valleyfield. Building on the leading position we have established in Canada, this opportunistic agreement allows us to leverage our existing cultivation platform to deliver premium Quebec-grown cannabis to international patients and consumers, while we continue to expand our growth in Canada, and we look forward to a long and productive relationship with Curaleaf."

"Securing a long-term international supply agreement with a partner of Curaleaf's scale provides Cannara with a strong commercial framework to access international demand while remaining focused on our core Canadian growth strategy," commented Nicholas Sosiak, chief operating officer and interim chief financial officer of Cannara. "Importantly, this opportunity accelerates our Valleyfield expansion plan by approximately one year, allowing us to activate additional cultivation capacity ahead of schedule while creating a clear pathway to incremental revenue growth and long-term shareholder value."

About Cannara Biotech Inc.

Cannara Biotech is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products. Cannara owns two megafacilities based in Quebec spanning over 1.6 million square feet, providing the company with 100,000 kg of potential annualized cultivation output. Leveraging Quebec's favourable energy costs, Cannara maintains an efficient, low-cost production model.

About Curaleaf Holdings Inc.

Curaleaf is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. Curaleaf International's unique distribution network throughout Europe, Canada and Australasia brings together pioneering science and research with cutting-edge cultivation, extraction and production.

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