Mr. Rodrigo Gallardo reports

XEBRA BRANDS PARTNERS WITH KANNAGROUP TO MANUFACTURE CBD PRODUCTS IN MEXICO

Xebra Brands Ltd. has achieved a significant milestone with the formalization of a key manufacturing non-exclusive agreement in collaboration with KannaGroup Inc., executed on March 7, 2024, with the aim at producing premium CBD (cannabidiol) products within Mexico.

This strategic collaboration marks a pivotal moment for Xebra Brands as it strategically positions itself to leverage emerging market opportunities and reinforce its foothold in the Mexico CBD landscape. By establishing manufacturing capabilities through KannaGroup, Xebra Brands is poised to establish a strong footprint in the Mexican market, creating inherent value by optimizing operational efficiencies and reducing production costs through localized manufacturing.

KannaGroup is a pioneering and innovative company in the wellness industry, dedicated to unlocking the immense potential of the wellness market in Mexico, Latin America and the U.S. Hispanic region. Founded in 2020 and headquartered in Guadalajara, Mexico, KannaGroup is committed to overcoming market barriers through education, truthful information and science-backed data to develop high-quality products and brands both proprietary and third party. With a multifaceted portfolio of brands, KannaGroup leverages the power of human connection and technology to provide affordable products and services.

The decision to partner with KannaGroup underscores Xebra Brands' commitment to strategic partnerships and prudent capital allocation. By harnessing KannaGroup's expertise and state-of-the-art facilities in Mexico, Xebra Brands aims to unlock cost efficiencies while upholding its unwavering commitment to delivering unparalleled quality CBD products to consumers worldwide.

"We are thrilled to announce this strategic collaboration with KannaGroup, which represents a significant step forward in our growth journey," commented Rodrigo Gallardo, chief executive officer of Xebra Brands. "This partnership underscores our relentless pursuit of excellence and shareholder value creation as we continue to position Xebra Brands for sustained success in the dynamic CBD market landscape."

As part of this partnership, Xebra Brands and KannaGroup will initially launch three flagship products:

• Tinctures: Crafted with precision and care, Xebra Brands' CBD tinctures offer a convenient and effective way to experience the benefits of CBD. Available in a range of strengths and flavours, its tinctures are formulated using premium-quality CBD extract and are perfect for everyday use.
• Capsules: Experience the power of CBD in a convenient, easy-to-swallow capsule format. Xebra Brands' CBD capsules are expertly formulated to deliver precise doses of CBD, providing a convenient option for those seeking a consistent CBD experience on the go.
• Topicals: Indulge your senses with Xebra Brands' luxurious CBD topicals. Infused with soothing botanicals and premium CBD extract, Xebra Brands' topicals offer targeted relief and nourishment for your skin, leaving you feeling refreshed, rejuvenated and revitalized.

"At KannaGroup, we feel proud and honoured to collaborate with Xebra Brands on this exciting project. This partnership represents a unique opportunity to combine our strengths and continue developing the market in the region. We are committed to bringing our expertise, production and quality capabilities to ensure the success of this initiative and strengthen our position as leaders in Mexico and Latin America," said Ernesto Rodriguez, CEO of KannaGroup.

The manufacturing agreement includes favourable commercial costing on a case-by-case basis dependent on the type of products, batch sizes, ingredients and timing.

Xebra Brands remains steadfast in its adherence to stringent quality assurance protocols and regulatory compliance standards. Leveraging KannaGroup's advanced manufacturing capabilities and best-in-class quality control measures, Xebra Brands remains committed to setting the industry benchmark for product purity, potency and consistency.

About Xebra Brands Ltd.

Xebra Brands is a forward-thinking leader in the CBD industry, dedicated to delivering premium-quality CBD products that redefine excellence. With a focus on innovation, operational excellence and shareholder value creation, Xebra Brands offers an extensive portfolio of CBD products spanning tinctures, topicals, edibles and more. Through relentless pursuit of excellence, Xebra Brands remains at the forefront of the global CBD market.

We seek Safe Harbor.