Mr. Rodrigo Gallardo reports

XEBRA BRANDS EXECUTES CBD SUPPLY AGREEMENT IN MEXICO

Xebra Brands Ltd. has entered into a supply agreement with ICAN Green SA de CV, a division of ICAN Investing Group LLC, to supply CBD (cannabidiol) isolate to Desart MX SA de CV, a division of Xebra Brands, for use in the manufacturing of legal CBD products in Mexico.

ICAN, an international cannabis company with a focus on Latin America, is a regional reference in education, research and development of cannabis-based medications and products. ICAN was the first and (so far) only company to legally import THC (tetrahydrocannabinol) API (active pharmaceutical ingredient) into Mexico and is one of the few companies that has the legal ability to import non-psychoactive cannabinoids such as CBD and CBG (cannabigerol) into the country.

Under the terms of the agreement, ICAN will be the exclusive supplier of CBD to Desart MX for a period of two years, with the possibility of automatic annual renewal. This collaboration marks a significant milestone for both companies and underscores their commitment to partnering with Desart MX, a division of Xebra Brands, the only corporation in Mexico federally approved by the COFEPRIS (Mexican Food and Drug Administration) to import and acquire cannabis seeds, cultivate and harvest cannabis, process and produce cannabis, and sell cannabis products with less than 1 per cent THC, both domestically and through export.

Erick Ponce, chief executive officer and legal representative of ICAN and director of Xebra Brands, expressed his enthusiasm about the partnership, stating: "We are thrilled to be partnering with Desart MX to supply them with our premium CBD. This agreement exemplifies our commitment to Xebra and our desire to continue forward in growing the legal CBD products market in Mexico, and we look forward to supporting Desart MX in their endeavours."

Rodrigo Gallardo, interim chief executive officer of Xebra and Desart MX, also commented on the collaboration, saying: "We are excited to join forces with ICAN as this is an incredibly important step towards commercialization of the first 100-per-cent-legal and 100-per-cent-Mexican-made CBD products. The immediate access to CBD through ICAN and the supply agreement allows Xebra to manufacture products domestically in Mexico without the need to harvest and extract our own CBD, which would add considerable time to the commercial process. This once again demonstrates Xebra's ability to execute on its commercial pathway."

The commercial terms of the contract are calculated on a price-per-kilogram basis, with volume discounts for larger quantities of CBD isolate purchased.

Both companies are confident that this strategic partnership will not only strengthen their positions in the market but also drive mutual growth and success in the rapidly evolving CBD industry.

About Xebra Brands Ltd.

Xebra is an international cannabis company focused on the development and sale of cannabis and CBD products in Mexico. Xebra is an absolute first mover in the Mexican cannabis sector, with the first-ever granted authorization to a corporation by the COFEPRIS.

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