Mr. Nicholas Sosiak reports

CANNARA ANNOUNCES NORMAL COURSE ISSUER BID

Cannara Biotech Inc.'s principal regulator, the Toronto Stock Exchange, has accepted its notice of intention to proceed with a normal course issuer bid (NCIB).

Pursuant to the NCIB, Cannara may purchase up to 1,975,642 of its common shares, representing 2 per cent of the 98,782,148 shares issued and outstanding as at July 21, 2026, during the 12-month period commencing Aug. 4, 2026, and ending Aug. 3, 2027. As at July 21, 2026, the public float consisted of 48,294,079 shares.

Under the NCIB, other than purchases made under block purchase exemptions, Cannara may purchase up to 10,469 shares on the TSX during any trading day, which represents approximately 25 per cent of the average daily trading volume of the shares on the TSX. As Cannara's shares only commenced trading on the TSX on March 2, 2026, following the company's graduation from the TSX Venture Exchange, the average daily trading volume has been calculated using the period from March 2, 2026, to June 30, 2026 (being 41,879 shares), rather than the six completed calendar months preceding the TSX's acceptance of the notice of the NCIB. Any shares purchased under the NCIB will be cancelled.

Cannara's board of directors believes that an NCIB represents an appropriate and desirable use of its available cash to increase shareholder value and is in the best interest of Cannara and its shareholders. The company believes that the underlying value of its common shares may not be reflected in the market price of the shares from time to time. Cannara believes it has sufficient cash flow and financial resources to fund the bid without impairing its ability to pursue growth opportunities, meet its financial obligations or otherwise operate in the ordinary course, and considers the bid to be a prudent and efficient use of capital.

Any purchases made under the NCIB will be made by Cannara subject to favourable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or alternative Canadian trading systems.

About Cannara Biotech Inc.

Cannara is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products.

We seek Safe Harbor.