Mr. Mike Withrow reports

AREV ENTERS INTO JOINT VENTURE TO EXTRACT FUNCTIONAL MUSHROOMS

Arev Nanotec Brands Inc. has entered into a joint venture agreement with Absolem Mushroom Extraction Inc. dated June 18, 2020.

The transaction involves two stages. During the first stage, Absolem will make the cash and share payments to Arev described below and Arev will undertake the development work described below. In the second stage, informed in part by the results of the development work undertaken by Arev in stage 1, Absolem and Arev will produce and sell mushroom extracts and mushroom-based products. Each of stage 1 and stage 2 of the transaction is subject to receipt of applicable regulatory and stock exchange approvals.

This JV agreement replaces the letter agreement, as announced in November, 2019.

Absolem will pay $100,000 to Arev, of which $20,000 will be paid in cash, and $80,000 will be paid by the issuance to Arev of common shares of Absolem at a price of 7.5 cents per share. Subject to Arev's satisfaction of due diligence under Subsection 1(a), Arev agrees forthwith to apply the cash payment to the purchase of specific additional extraction equipment, particulars of which have been provided to Absolem prior to the date of this letter agreement. The estimated purchase price of the new equipment is $40,000 (U.S.). Arev will pay the difference between the cash payment and the purchase price of the new equipment. The new equipment will be owned by Arev. In consultation with Absolem, Arev will conduct research and will develop methods for deriving extracts from mushrooms utilizing the new equipment and other extraction equipment which it owns, in which research shall not involve any prohibited activities unless official authorization in writing has been granted to Arev for such prohibited activities under Part J of the Canada Food and Drug Regulations. Arev shall not perform nor allow on its premises any illegal activities. Other than the supply of mushrooms, which will be provided by Absolem at Absolem's expense, the cost of the extraction methods research shall be borne by Arev, but shall not exceed a total investment in the joint venture partnership of $100,000. All intellectual property generated through the extraction methods research which relates to mushroom extraction methods will vest in Absolem and all other intellectual property shall vest in Arev, in which intellectual property shall include any scientific information related to organic chemistry extraction technologies. The parties will make their reasonable best efforts to do all things required from each of them to complete the extraction methods research by the end of the year 2020.

Michael Withrow, chief executive officer of Arev, commented: "We are honoured to have been selected to be the extraction company of choice by Absolem. The team at Absolem has identified the next big trend in natural medicines and we are delighted to be part of this innovation. This collaboration will potentially lead to another line of branded ingredients and formulations produced by Arev and build on our revenue stream."

Ken Kuiper, chief executive officer of Absolem, commented: "We are delighted to be partnering with Arev as our extraction company. As the demand for natural medicine and mushrooms is growing and gaining in popularity, we believe that investing in the research and development of the extraction process will set us apart and help us better serve our customers. We will innovate new patented extraction methods, explore alternative analogs of the mushrooms and increase the bio-availability of extracted compounds."

This transaction is subject to the approval of the Canadian Securities Exchange.

About Arev Nanotec Brands Inc.

Arev produces and sells functional ingredients produced through its proprietary extraction systems. These premium ingredients and products are targeted for the natural health, medical, functional food, nutraceutical and sport nutrition markets.

We seek Safe Harbor.