Mr. Rodrigo Gallardo reports

XEBRA BRANDS LAUNCHES NATIONAL RFP TO ESTABLISH CANNABIS CULTIVATION PARTNERSHIPS ACROSS MEXICO

Xebra Brands Ltd. has launched a formal request for proposal (RFP) process. This initiative seeks to form five to 12 agricultural partnerships with companies and authorities across diverse growing regions in Mexico to cultivate cannabis under federal authorization.

A national call for cannabis cultivation partners

Xebra continues to progress on the legal groundwork while moving into commercial execution, the company is issuing a public call for proposals from experienced agricultural companies, landowners and municipal entities with the capability and interest to partner on cannabis cultivation projects. These joint initiatives will mark the first wave of federally compliant cannabis farming operations in the country.

"Entering commercial operations marks a historic milestone for Xebra and for the cannabis industry in Mexico," said Rodrigo Gallardo, interim chief executive officer of Xebra Brands. "By launching this RFP, we are not only opening the door for regional growers to participate in a federally licensed and structured cannabis market -- we are laying the groundwork for a transformative new chapter in the country's agricultural economy."

RFP overview and timeline

The RFP will remain open from June 1, 2025, until Aug. 31, 2025. Proposals will be reviewed through a structured evaluation process, with selected partners announced in fall 2025.

The RFP submission package outlines all requirements and evaluation criteria, which include:

• Land information: location, size, access to infrastructure, water availability and suitability for cannabis;

• Legal readiness: ability to operate in compliance with Cofepris and municipal agricultural guidelines;

• Operational experience: performance record in high-value crop cultivation, including greenhouse or open-field management;

• Project proposal: business model (joint venture, lease etc.), proposed investment and projected yield capacity;

• Environmental responsibility: sustainability practices and community development plans;

• Security protocols: site security, access control and regulatory compliance safeguards;

• Implementation timeline: readiness for immediate development and planting schedules.

Driving forward a legal cannabis economy

This initiative represents the first economic agricultural call to action under Mexico's federal cannabis framework, solidifying Xebra's leadership in the space and laying the groundwork for a thriving, legally compliant cannabis economy.

About Xebra Brands Ltd.

Xebra Brands is a global cannabis company focused on the development and commercialization of cannabis-based products and assets. In Mexico, Xebra holds the only full federal authorization to legally cultivate, process and sell cannabis (less than 1 per cent THC). The company is committed to building a national network of compliant cultivation partners and introducing high-quality cannabis products to both domestic and international markets.

We seek Safe Harbor.