Mr. Edoardo Mattei reports

RED WHITE & BLOOM REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023

Red White & Bloom Brands Inc. has filed its condensed interim consolidated unaudited financial statements, management discussion and analysis, and associated certifications for its second quarter ended June 30, 2023. The 2023-Q2 Filings may be accessed under the Company's SEDAR+ profile at www.sedarplus.ca.

2023-Q2 Financial Highlights

Revenues were $21.9 million for 2023-Q2 and $49.0 million for the first 6 months of fiscal 2023.

Gross profit, before fair value adjustments, was $6.9 million for 2023-Q2 or 32% of 2023-Q2 revenues versus $4.8 million for the quarter ended June 30, 2022 ("2022-Q2") or 18% of 2022-Q2 revenues.

Operating expenses were $9.8 million for 2023-Q2 versus $13.3 million for 2022-Q2.

Adjusted EBITDA(1) was $0.3 million for 2023-Q2 and $1.0 million for the first six months of fiscal 2023.

Colby De Zen, President of RWB, stated, "The Company is focused on expanding its premium, Platinum branded product offerings in existing and new markets in addition to creating new revenue opportunities across each of our distribution, retail and licensing channels. After our successful launch in Missouri last year and Arizona earlier this year, we are pleased to share that Platinum is now available in Canada with deliveries, in the third quarter, of Platinum branded products having arrived on shelves in Ontario. We continue to secure licensing opportunities for our Platinum branded products with key partners in targeted legal states and are in late-stage negotiations to add our sixth state in the early fourth quarter. In addition, through our continuing cost rationalization efforts, the Company has been able to successfully generate nearly $4 million (fiscal year to date) in reductions to its general and administrative expenses. The Company has also recently invested in the optimization of its manufacturing facilities through value-added enhancements, driven by automation and procurement strategies, designed to drive both labor and product cost efficiencies as well as an increase in overall production capacity."

Recent Operating Highlights

During 2023-Q2, construction commenced on our next high profile retail location located in South Beach, Florida. The location is scheduled to open in early 2023-Q4 with a full suite of "House of Platinum" product offerings. All Florida retail locations have now been rebranded "House of Platinum" having garnered regulatory approvals from the state.

On June 6, 2023, in conjunction with the execution of a binding letter agreement for a potential business combination between the Company and Aleafia Health, Inc. (the "Aleafia Letter Agreement"), the Company was assigned and acquired senior secured debt held by Aleafia Heath, Inc. ("Aleafia") at a discounted purchase price of $12.5 million from a lender of Aleafia, and subsequently loaned Aleafia an additional $1.5 million under the credit facility (the "AH Note Receivable").

On June 20, 2023, the Company announced that its shareholders had approved all resolutions at the Annual General Meeting held on June 16, 2023.

On July 11, 2023, the Company successfully launched its Platinum branded vape products in the Ontario (Canada) market; which it then followed with its Platinum branded vape cartridges on August 23, 2023. Through the Company's distribution partnership, it continues to pursue product listings in Alberta, British Columbia and Manitoba.

On July 14, 2023, certain holders of Aleafia Debentures representing more than 33 1/3% of the outstanding Aleafia Convertible Debentures, as represented by their designated representatives, communicated to Aleafia and RWB that they would not accept the terms of the Aleafia Debenture settlement set out in the Aleafia Letter Agreement. As a result, the Company and Aleafia mutually agreed to terminate the Aleafia Letter Agreement without liability or cost to either party.

On July 24, 2023, in light of Aleafia's financial condition, the termination of the Aleafia Letter Agreement, and the ongoing breach of covenants under the AH Note Receivable by Aleafia, RWB issued demand letters and notices to enforce its security under Section 244 of the Bankruptcy and Insolvency Act.

On July 25, 2023, Aleafia announced that it had received an order (the "Initial Order") from the Ontario Superior Court of Justice (Commercial List) under the Companies' Creditors Arrangement Act ("CCAA"), in order to restructure its business and financial affairs (the "Aleafia CCAA Proceedings"). The Initial Order approved, among other things, debtor-in-possession financing ("DIP Financing") to be provided by RWB to fund the Aleafia CCAA Proceedings and other short-term working capital requirements pursuant to a term sheet between RWB and Aleafia dated July 24, 2023 (the "Aleafia DIP Term Sheet"). As specified under the Aleafia DIP Term Sheet, RWB agreed to advance DIP Financing up to $6.6 million (the "DIP Loan"). The continued availability of the DIP Loan is conditional upon, among other things, certain conditions being satisfied, including the Initial Order remaining in effect.

On August 22, 2023, the Ontario Superior Court of Justice (Commercial List) (the "Court") approved a stalking horse asset purchase and share subscription agreement pursuant to which RWB would acquire certain assets from Aleafia and subscribe for shares of certain subsidiaries of Aleafia if RWB becomes the successful bidder pursuant to the sale and investment solicitation process, also approved by the Court, in connection with the Aleafia's CCAA proceedings of Aleafia and certain of its subsidiaries.

About Red White & Bloom Brands Inc.

Red White & Bloom is a multi-state cannabis operator and house of premium brands in the U.S. legal cannabis sector. RWB is predominantly focusing its investments on the major U.S. markets, including Arizona, California, Florida, Massachusetts, Missouri, and Michigan. Red White & Bloom Brands Inc. Investor and Media Relations

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