Ms. Ann Lawrence reports

LOWELL FARMS INC. ANNOUNCES UNAUDITED THIRD QUARTER 2023 FINANCIAL AND OPERATIONAL RESULTS

Lowell Farms Inc. has released its unaudited revenue and operating results for the third quarter (ended Sept. 30, 2023). All figures stated are in US Dollars.

Third Quarter Financial Highlights

Revenues:

Net revenue generated for Q3 2023 decreased 28% to $6.2 million, as compared to $8.7 million for Q3 2022. Net revenue was $7.0 million for Q2 2023, a decrease of 12%.

CPG revenue decreased 29% compared to Q3 2022 and decreased 2% compared to Q2 2023.

Bulk revenue from self-grown wholesale products decreased 39% compared to Q3 2022 and decreased 47% compared to Q2 2023. In Q3 2023, there was a 49% decrease in volume and a 3% increase in realized price per pound compared to Q2 2023.

LFS revenue increased 384% compared to Q3 2022 and increased 79% compared to Q2 2023.

Out of state licensing revenue decreased 38% compared to Q3 2022 and decreased 19% compared to Q2 2023.

Gross Margin:

Gross margin for Q3 2023 was negative 7.1%, representing a gross loss of negative $0.4 million, compared to a gross margin of negative 4.8% for Q2 2023, which represented a gross profit of $0.3 million.

Operating Loss:

dot Operating loss was $2.8 million compared to an operating loss of $5.2 million in Q3 2022, a 46% improvement. Operating loss was $2.6 million in Q2 2023.

Net Income:

Net loss was $20.2 million compared to a net loss of $4.8 million in Q3 2022, and a net loss of $0.1 million for Q2 2023.

Adjusted EBITDA:

Adjusted EBITDA was negative $1.3 million compared to adjusted EBITDA of negative $3.5 million in Q3 2022 and adjusted EBITDA of negative $1.2 million in Q2 2023. Adjusted EBITDA is a non-GAAP financial measure. See "Use of Non-GAAP Financial Information" below for further information and a detailed reconciliation to Net Loss, the closest comparable GAAP measure.

"One year into our ambitious restructuring strategy, the decisions we're making have enabled us to eliminate millions in debt, and secured rights to advance the Lowell brand, positioning ourselves for growth and success," says Chairperson of the Board Ann Lawrence. "The completion of this deal allows the company to refocus on expanding our portfolio while continuing to build strong partnerships within the California Cannabis market."

Subsequent events to the second quarter ended June 30, 2023: Lowell Farms Announces Share Consolidation https://ir.lowellfarms.com/news-events/press-releases/detail/113/lowell-farms-inc-announces-share-consolidation Lowell Farms Announces Repurchase of $22 Million of Senior Secured Convertible Debentures https://ir.lowellfarms.com/news-events/press-releases/detail/114/lowell-farms-inc-announces-repurchase-of-22-million-of

Operational Highlights and Ongoing Initiatives:

Cultivation Quality and Efficiency: Continuing to refine its cultivation processes, genetics, and enhance facilities and systems is always at the forefront of the Company's objectives. Lowell Farms saw flower product totaling approximately 5,727 pounds during the third quarter of 2023 compared to 6,730 in Q2 of 2023. The Company harvested 39 times in Q3 2023; in contrast to 36 harvests in Q2 2023. The average turn time for the flowering rooms remained consistent with 60 days in Q3 and Q2 2023.

The average flower potency was 27.1% in Q3 2023 compared to 26.1% in Q2 2023.

Lowell Farm Services:

Lowell Farms Services (LFS) is the Company's cannabis processing facility in Salinas Valley. In Q3 2023 the Company generated revenue of $0.5 million associated with Lowell Farm Services compared to $0.1 million in Q2 2023. LFS revenue includes sales of third party bulk flower. Lowell Farm Services had a record quarter with processing approximately 114,200 pounds of wet weight third-party flower in Q3 2023 compared to 23,300 pounds in Q2 2023.

California Market Trends:

Lowell Herb Co. Lowell 35s brand extension revenue during Q3 2023 was $887k. Lowell has remained one of the top three selling non-infused pre-roll brands in California and ranked as one of the top 20 brands in the state, according to Headset data.

Infused 35's product extension launched in Q2 with approximately $57k in sales compared to Q3 with $74k in sales. Sales of Lowell branded products generated revenue of $3.1 million in Q3 2023, compared to $3.5 million for Q2 2023.

Distribution Capabilities:

Logistics The average drop value was approximately $3,939 in Q3 2023 compared to $3,883 in Q2 2023.

Q3 Financial Results Earnings Conference Call Details:

The conference call with management at 8:30 a.m. ET on Tuesday, November 14, can be accessed using the following dial-in information:

U.S. and Canadian Toll Free: 1-888-349-0084

International: 1-412-317-0455

Webcast: Link here

Please dial-in at least 10 minutes before the call to register.

The conference call will be webcast live and archived on the investor relations section of the Lowell Farms website at https://ir.lowellfarms.com/ .

ABOUT LOWELL FARMS INC.

Lowell Farms Inc. (CSE:LOWL; OTCQX:LOWLF) (the "Company") is a California-based cannabis company with advanced production capabilities supporting every step of the supply chain, including cultivation, extraction, manufacturing, brand sales, marketing, and distribution. Lowell Farms grows artisan craft cannabis with a deep love and respect for the plant, and prides itself on using sustainable materials - from seed to sale - to produce an exclusive portfolio of award-winning brands, including Lowell Herb Co, House Weed, Moon, Cypress Cannabis, and Original Pot Co. for licensed retailers statewide.

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