Mr. Mark Lotz reports

ASCENT OBTAINS EXTENSION OF STAY OF PROCEEDINGS AND ANNOUNCES BI-WEEKLY DEFAULT STATUS REPORT

Ascent Industries Corp. and certain of its affiliates obtained an order on Jan. 28, 2020, from the Supreme Court of British Columbia extending the stay of proceedings provided by the initial order of the court dated March 1, 2019, until March 6, 2020.

The applicants applied for an extension in order to permit the company to, among other things, prepare and file its 2018 annual financial statements and 2019 interim financial statements as required by applicable Canadian securities laws and Canadian Securities Exchange policies and complete the implementation of the steps contemplated in the company's first amended and restated consolidated plan of compromise, arrangement and organization, including the distribution of common shares of Ascent pursuant to the plan.

The applicants also obtained an order from the court limiting the role of Ernst & Young Inc., the court-appointed Companies Creditors Arrangement Act (CCAA) monitor, in the CCAA proceedings going forward to those duties prescribed by the CCAA, which the applicants sought on the basis that the cash distributions contemplated under the plan are now complete and the restructuring activities and tasks for plan implementation that remain outstanding require limited involvement from the monitor.

Copies of the plan and other court materials and information relating to the plan and the CCAA proceedings are available on the website maintained by the monitor. All inquiries regarding the company's proceedings under the CCAA should be directed to the monitor by mail or by e-mail.

Biweekly default status report

The company provides this default status report pursuant to National Policy 12-203 (Cease Trade Orders for Continuous Disclosure Defaults) and applicable policy of the British Columbia Securities Commission which applies to companies, such as Ascent, that are the subject of CCAA proceedings.

On May 16, 2019, the company announced that its audited annual financial statements for the year ended Dec. 31, 2018, including the related management's discussion and analysis and accompanying chief executive officer and chief financial officer certifications were not filed by the required filing deadline of April 30, 2019. As of the date hereof, the company has not filed (i) its interim financial statements for the three-month period ended March 31, 2019, and related management's discussion and analysis and accompanying CEO and CFO certifications; (ii) its interim financial statements for the three-month period ended June 30, 2019, and related management's discussion and analysis and accompanying CEO and CFO certifications; and (iii) its interim financial statements for the three-month period ended Sept. 30, 2019, and related management's discussion and analysis and accompanying CEO and CFO certifications prior to the filing deadlines prescribed under National Instrument 51-102 (Continuous Disclosure Obligations).

As previously reported, Ascent is currently involved in proceedings under the CCAA proceeding. Ascent is required to file biweekly default status reports in accordance with NP 12-203 until such time that the CCAA proceeding is concluded or until the defaults in filing the annual filings and interim filings are remedied.

The company reports that there have been no material changes to the information contained in its last biweekly default status report dated Jan. 13, 2020. Furthermore, there is no other material information concerning the affairs of the company that has not been generally disclosed. The company confirms that, since its last biweekly default status report dated Jan. 13, 2020, there have been no failures by it in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203. The company intends to file the annual filings and interim filings as soon as possible.

About Ascent Industries Corp.

Ascent's operations currently include facilities in the United States. In the United States, the company holds licences in Oregon (for processing and for distribution of cannabis to any licensed entity in the state) and in Nevada (for cultivation and for production, processing and wholesale distribution of cannabis).

We seek Safe Harbor.