Mr. Marc Lustig reports

PHARMACIELO PROVIDES CORPORATE UPDATE

Pharmacielo Ltd. has provided shareholders with an update on several continuing initiatives.

Management Commentary

Marc Lustig, Chairman and CEO of Pharmacielo commented, "Our team has successfully focused the business on revenue generation and a product mix that is oriented toward higher margin products. With exposure to 25 customers across 15 countries, a growing pipeline, a lean operating structure, and no meaningful capex required in the short or medium term, we expect to be able to turn this business cash flow positive quickly as the revenue line continues to build."

Business Development

Further to the Company's press release on June 29, 2023, titled Pharmacielo Provides Corporate Update, the Company's business development team has continued to make progress generating sales with both new and existing customers.

Brazil

Pharmacielo's presence in the Brazilian market continues to grow. The Company currently has three commercial customers in the country. As announced on February 8, 2023, one of these customers, a Brazilian pharmaceutical company has been in the final stages of testing the Company's Active Pharmaceutical Ingredient (API), for inclusion in its products to be sold in Brazil. The customer has advised Pharmacielo that it expects to receive approval from ANVISA, the Brazilian Health Regulatory Agency, by the end of Q3, 2023 and has registered Pharmacielo as its API supplier. Commercial sales to this customer are expected to begin in Q4, 2023.

Australia

Pharmacielo has added a global healthcare and pharmaceutical company as a customer, which will be its second customer in Australia. This customer has just received authorization to import THC extracts from Pharmacielo for R&D trials to be further included in finished products to be marketed in Australia. The Company expects to make its first shipment in Q3, 2023.

Germany

Pharmacielo has made its first shipment of THC-dominant dried flower to Germany. The Company is currently waiting for feedback from its customer and expects regular shipments to continue for the next three years.

South Africa

Further to the Company's press release dated May 16, 2023, and titled Pharmacielo Announces Shipment of Pharmaceutical Grade Cannabis Extract to Customer in South Africa, the customer has completed its testing, its final product has been approved by the appropriate health authorities in the country, and Pharmacielo expects to make its second shipment to the customer by the end of Q3, 2023 with ongoing shipments on a quarterly basis.

Chile

The Company has made its first shipment of THC Full Spectrum as an API as well as CBD Isolate to a customer in Chile and expects to make a subsequent shipment before the end of Q3, 2023, with ongoing shipments as the customer's product distribution expands. The customer is a pharmaceutical company that imports pharma-grade raw materials and supplies medical patients across Argentina, Chile, Colombia, Ecuador, Mexico, and Peru.

Settlement of Debt

Today, the Company also announced that it has settled $555,729 of debt owed to certain service providers and former officers of the Company, through the issuance of an aggregate amount of 2,526,039 common shares of the Company, at a deemed price of $0.22 per share.

About Pharmacielo

Pharmacielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and sustainable processing and supplying of all natural, pharmaceutical-grade medical cannabis products to large channel distributors. Pharmacielo's principal (and wholly owned) subsidiary is Pharmacielo Colombia Holdings S.A.S., headquartered at its cultivation and processing center located in Rionegro, Colombia.

The board of directors and executive team of Pharmacielo are comprised of a diversely talented group of international business executives and specialists with relevant and varied expertise. Pharmacielo recognized the significant role that Colombia's ideal location plays in building a sustainable business in the medical cannabis industry, and the Company, together with its directors and executives, is executing on a business plan focused on supplying the international marketplace.

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