Mr. J. Craig Goodwin reports

NATURALLY SPLENDID REPORTS FIRST QUARTER RESULTS FOR 2020

Naturally Splendid Enterprises Ltd. has released its unaudited financial results for the three months ended March 31, 2020. All amounts are prepared in accordance with international financial reporting standards.

Naturally Splendid recorded a net loss and comprehensive loss of $1,320,761 for the three months ended March 31, 2020, compared with a net loss of $1,103,965 during the three months ended March 31, 2019. The increase in net loss and comprehensive loss was attributed to a number of factors, including the additional production employees and quality assurance costs due to additional requirements needed for SQF2 certification compared with the same period in 2019. There were also increased costs developing strategic operational plans as the COVID-19 pandemic began to make its presence known in North America, resulting in additional production runs needed to build up inventories as a pro-active measure addressing concerns of disrupting operations.

Revenues decreased slightly by 7 per cent over the same period last year, and gross profit margins decreased to 18 per cent of sales. Administrative expenses decreased to $861,864. The decrease was mainly due to a reduction in consulting and corporate promotion. The company is expanding its diverse product lines and has resumed exporting bulk hulled hemp seed to South Korea. Administrative expenses decreased by over 20 per cent from $1,085,616 to $861,864. The decrease was mainly due to a reduction in consulting and corporate promotion. The company continues review operations and will endeavour to institute additional efficiencies throughout the organization, further optimizing operations.

The company's gross margin percentage decreased to 18 per cent in the three months ended March 31, 2020. The company will balance a focus on a mix of its higher-margin products and new commercial opportunities with expanding bulk export opportunities. The company changed its sales mix when compared with 2019 with an increase of export bulk seed sales, which sold at a lower gross margin percentage. Thus, the three months ended March 31, 2020, provided lower margins due to the increase volume of bulk hemp seed sales.

Naturally Splendid recorded sales of $720,255 during the three months ended March 31, 2020, compared with $772,803 for the three months ended March 31, 2019. The company had decreased sales in its private label bars and bites business of approximately $16,000, while branded products recorded virtually the same sales. Sales have remained relatively stable in branded hemp products, showing a decrease of approximately $29,000, and new Natera Sport products remained stable, recording a slight decrease by approximately $8,200.

Cost of sales during the three months ended March 31, 2020, was $593,626 compared with $523,269 in three months ended March 31, 2019.

The company is continuing to focus on plant-based nutritional products while resuming exporting bulk hemp seed to South Korea. The company is focused on private label and branded sales and is re-establishing its presence in international markets such as U.S. and Korean markets. Market opportunities will continue to include both domestic and international destinations. Additionally, Prosnack Natural Foods Inc. has been pro-actively securing new private label clients.

                                STATEMENTS OF (LOSS) DATA

                                            For the three months          For the three months
                                            ended March 31, 2020          ended March 31, 2019

Revenue                                                 $720,255                      $772,803
Cost of sales                                            593,626                       523,269
Gross profit                                             126,629                       249,534
Selling and distribution expenses                       (604,421)                     (275,942)
Administrative expenses                                 (862,864)                   (1,085,616)
Other income (loss) and taxes                         (1,320,761)                   (1,103,965)
Net income (loss)                                     (1,320,761)                   (1,103,965)
Basic and diluted earnings (loss)
per share                                                  (0.01)                        (0.01)

Naturally Splendid chief executive officer J. Craig Goodwin stated: "Given the challenges operating within these COVID-19 conditions, I am mostly satisfied with our Q1 results. Quite obviously, prior to the pandemic, our expectations for Q1 were set considerably higher. Having said that, I am extremely proud of our entire team and the efficiency [in which] we were able to transition our facility and operating procedures to account for these challenges. We are seeing many of our contract manufacturing clients begin to recover sales as well. The company will continue our strategy to deliver nutritious, ethical, sustainable plant-based nutrition to a growing consumer base. COVID-19 appears to be accelerating the growth trend for plant-based nutrition even though this category was already outperforming practically every other retail market food category. We will continue to focus our resources and capital in this rapidly growing category and look forward to bringing on new opportunities in a timely manner."

About Naturally Splendid Enterprises Ltd.

Naturally Splendid operates a safe quality food Level 2 certified food manufacturing facility just outside of Vancouver, B.C., in Canada. It has established numerous healthy, functional foods under recognized brands such as Natera Sport, Natera Hemp Foods, Chii, Elevate Me and Woods Wild Bar. The company has a myriad of new products and line extensions under development that are approaching launch. Naturally Splendid has also developed proprietary technologies for the extraction of high-demand, healthy omega-3 and 6 oils from hemp.

We seek Safe Harbor.