Mr. Nick Kadysh reports

PHARMALA BIOTECH AND SHAMAN PHARMA GRANTED FIRST EVER SPECIAL ACCESS PROGRAM AUTHORIZATION FOR MDMA

Pharmala Biotech Holdings Inc. and its distribution partner, CCrest Laboratories (operating as Shaman Pharma), have received an authorization to provide a number of its LaNeo MDMA (methylenedioxymethamphetamine) capsules to a Canadian physician for treatment of a patient under Health Canada's Special Access Program. Pharmala has confirmed with Health Canada that this is the first-ever authorization of an MDMA-assisted therapy treatment under the Special Access Program.

"It's absolutely thrilling to be able to say that our GMP [good manufacturing practices] LaNeo MDMA will be used for the treatment of a patient in Canada. Ultimately, that's what all of our work should be about: improving lives for patients," said Nick Kadysh, chief executive officer of Pharmala. "This regulatory milestone isn't about financial impact, but health care impact."

Pharmala and Shaman will not be charging the patient or the physician for the drug product, which will be delivered on a compassionate-use basis. Pharmala will continue making available an amount of drug product for compassionate use under the SAP, but ultimately plans to begin charging patients on a cost-recovery basis. Clinicians seeking to make a Special Access Program request for MDMA for their patients should submit a request directly to Health Canada's Special Access Program.

Alexandre Grenier, chief executive officer of Shaman Pharma, commented: "Working in concert with Pharmala Biotech on this historic authorization, we've marked a significant step in the evolving narrative of MDMA's potential therapeutic applications. But let's be clear: This is not a product promotion. It's a testament to our unwavering dedication to scientific discovery and advancement in patient care. As we take part in this landmark moment alongside Pharmala Biotech, our commitment is not just to follow progress, but actively lead it."

Pharmala is the first publicly traded company to manufacture GMP MDMA, and is the first company to make available to researchers two clinical-grade psychedelic APIs (active pharmaceutical ingredients): (i) its LaNeo MDMA; and (ii) GMP psilocybin manufactured by Mindset Pharma. Shaman Pharma will be distributing all Special Access Program requests for Pharmala.

Pharmala will host a webinar regarding its newly formed joint venture in Australia, Cortexa, on May 16, 2023, at 7 p.m. ET.

About Pharmala Biotech Holdings Inc.

Pharmala Biotech Holdings is a biotechnology company focused on the research, development and manufacturing of MDXX-class (substituted methylenedioxyphenethylamines) molecules, including MDMA. Pharmala was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials, and to develop novel drugs in the same class. Pharmala is the first publicly traded company to manufacture clinical-grade MDMA. Pharmala's research and development unit has completed proof-of-concept research into ALA-002, Pharmala's lead drug candidate. Pharmala is a regulatory-first organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators.

We seek Safe Harbor.