Mr. Jay Garnett reports

XEBRA PROVIDES UPDATE ON MANAGEMENT CEASE TRADE ORDER

Xebra Brands Ltd. is providing an update to its previously disclosed management cease trade order (MCTO), announced on July 27, 2023, in respect of the audited annual financial statements and corresponding management's discussion and analysis for the year ended Feb. 28, 2023, including the chief executive officer and chief financial officer certifications, that were not filed by the required filing deadline of June 28, 2023.

As previously disclosed, the annual financial filings were not filed by the filing deadline due to the fact that there have been delays associated with the recent changes of management.

As a result of the above-referenced delay, the company is also late in the filing of its interim financial statements for the period ended May 31, 2023, the related management's discussion and analysis relating to the interim financial statements, and the related officer certifications of the company (collectively, the Q1 2023 filings).

The company is working expeditiously on the steps required to complete the annual financial filings and Q1 2023 filings and expects to be able to file them concurrently by Aug. 18, 2023. The company will provide updates as further information relating to the annual financial filings becomes available.

Until the annual financial filings and Q1 2023 fillings are filed, the MCTO will be in effect. Additionally, the company will issue biweekly default status reports in accordance with National Policy 12-203 -- Management Cease Trade Orders. The company intends to satisfy the provisions of the alternative information guidelines during the period it remains in default of the filing requirements. The company confirms that there have been no material business developments or other material information relating to its affairs as of the date of this news release that have not been generally disclosed.

About Xebra Brands Ltd.

Xebra Brands is an international cannabis cultivation and product company, with global brands and intellectual property. Its focus includes beverages, wellness and leisure. Xebra Brands 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 Brands retails its unique Vicious Citrus tetrahydrocannabinol/cannabinol lemonades.

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