Mr. Jay Garnett reports

XEBRA SIGNS FIRST CULTIVATION AGREEMENT IN MEXICO WITH CHAPINGO UNIVERSITY

Xebra Brands Ltd. has taken the next step in its joint venture with Chapingo University announced in March, 2023, with a cultivation agreement which will focus on the first commercial cultivation of cannabis and hemp with less than 1 per cent THC (tetrahydrocannabinol) in Mexico, and the research and development of cannabis cultivars for Mexico.

This agreement signed between Chapingo University (UACh) and Xebra Brands-Desart MX, among other things, is the first of its kind and will develop cultivation, research and development protocols for legal cannabis cultivation in Mexico.

The first collaborative actions between ChAU and Xebra will include:

1. The importation of a wide selection of cannabis seeds;
2. Cultivating and analyzing the phenological behaviour and productivity of industrial hemp flower and fibre under greenhouse conditions;
3. Assessing the strains that are best suited for different geological regions within Mexico and that help to control pests and the resistance to diseases;
4. Producing high-cannabinoid-yielding sativa L cannabis crops with less than 1 per cent THC both in the fields and in greenhouse environments, controlled by the university.

All intellectual property derivatives from this will be shared between Xebra and Chapingo. All material results of the cultivation (flower, fibres etc.) belong exclusively to Xebra Brands. As a second stage following the success of this project, both organizations plan to set up extraction technologies in Chapingo's laboratories.

In addition to generating a model of technological innovation for the production of cannabis under protected agriculture conditions (greenhouses) for the central zone of Mexico, it will be possible to propose to the COFEPRIS a model of technological and organizational innovation for the production of hemp in outdoor environments.

Roberto Rendon Medel will be in charge of the project, who is the leading researcher at the Center for Economic, Social, and Technological Research on Agribusiness and World Agriculture (CIESTAAM).

"I appreciate the institutional support of Dr. Federico Felix Hahn Schlam, co-responsible for the project and research professor in the department of irrigation, and Rodrigo Valencia of Xebra Brands. In addition, I thank the general directorate of research and graduate studies for supervising the project with scientific rigour, as we explore the best possible growing environments for certain cultivars, which will help move this industry forward in Mexico," said Mr. Medel.

Mr. Valencia, director of Xebra Brands-Desart MX, states, It is an unbeatable opportunity, we couldn't be more excited to expand our relationship with Chapingo University, and expand our partnership with this commercial agreement to legally cultivate for the first time in Mexico with the best agricultural experts in the country."

About Xebra Brands Ltd.

Xebra is an international cannabis cultivation and product company, with global brands and intellectual property. Its focus includes beverages, wellness and leisure. Xebra is an absolute first mover in the Mexican cannabis sector with the first ever granted authorization to a corporation by the COFEPRIS (Mexican Health Regulatory Agency). In Canada, Xebra retails its unique Vicious Citrus THC/CBN (cannabinol) lemonades.

We seek Safe Harbor.