Mr. Mike Withrow reports

AREV NANOTEC COMPLETES PHASE 1 OF MUSHROOM EXTRACTION JOINT VENTURE WITH ABSOLEM HEALTH

Arev Nanotec Brands Inc. has completed the first stage of its joint venture agreement with Absolem Mushroom Extraction Inc. (a subsidiary of Absolem Health Inc.) as announced July 17, 2020, where Absolem selected Arev to develop an exclusive extraction method for functional and medicinal mushrooms. Absolem has paid $20,000 as its cash portion for participation in the joint venture and issued 2,133,334 shares of Absolem Health to Arev. Arev has utilized the cash payment acquire certain extraction equipment that will be utilized to conduct research for the benefit of Absolem. Financially, Arev owns 50 per cent of the joint venture and holds a 6.6-per-cent equity interest in Absolem Health and, accordingly, will earn participatory revenues from the sale of extracts utilizing its equipment and standard operating procedures.

The company has taken delivery of the pharmaceutical-grade nanotechnology equipment and integrated it into its proprietary extraction systems. The company's work has identified green solvents suitable for extraction of functional and medicinal fungi and commenced trials on optimizing extraction of phytocompounds found in lion's mane. Lion's mane was selected as the initial mushroom to work with due to its legal status and unique functional properties for mental health, particularly dementia.

Arev's extraction system and proprietary methods enable the extraction of a variety of specific natural active substances, which are naturally present in certain functional and medicinal mushrooms. It is these natural substances that are reputed to have fostered and created some of the beneficial claims when certain types of mushroom species are ingested by humans, as noted in many peer-reviewed papers. In the second phase of this joint venture, Arev is focused on the beneficial features that are attributed to Hericium erinaceus, more commonly known as the lion's mane mushroom. "This mushroom has a long history of use in traditional Chinese medicines, and it has recently been examined in formal Western medicinal studies with the conclusion that lion's mane appears to be a 'good candidate to regress recognition memory decline during aging' and could be a new therapeutic strategy for preventing or treating neurodegenerative diseases such as dementia and Alzheimer's," according to "Hericium erinaceus Improves Recognition Memory and Induces Hippocampal and Cerebellar Neurogenesis in Frail Mice during Aging" (source: Nutrients; March, 2019).

Both Absolem and Arev are aware of the numerous additional naturally occurring wild and/or cultivated mushrooms in existence, and the parties are currently expanding their focus accordingly.

The technology that is being created and utilized for this extraction is a result of certain permutations and combinations available within Arev's extraction facility. Each refinement procedure is being specifically designed for the extraction of the natural substance that is to be ultimately used as an active ingredient for an intended analgesic or possible solution to the particular health condition that is under review.

Plants and fungi might be viewed as natural factories that produce a broad variety of diverse compounds. Reported results of both human and animal use of these products have been recorded throughout history. Some of the information is in historic testimonial form and some is in presented in Western scientific formats. Relief of specific ailments provided from natural substances have been recorded, ranging from temporary to permanent. Evidence of relief has been observed to occur throughout a variety of conditions of painful discomfort, including some amount of relief provided for anti-inflammatory situations, immune support, antibiotic, anti-oxidant, anxiety, nausea, depression and PTSD (posttraumatic stress disorder).

Arev has begun to extract the ingredient(s) known to have been involved in the relief, perhaps only temporary, of symptoms currently experienced by a significant portion of the human and animal world.

Some observations on process-scale extraction

The isolation and extraction of the substance(s) that produce positive results in a living being are an age-old process. Extractions are achieved through fermentation, straining, filtration, centrifugal force, gravity, ultrasound, ethanol usage, water usage, and numerous combinations of these and other activities.

Plants and fungi are natural chemical factories that produce diverse natural compounds: anti-inflammatory, immune support, anti-viral, antibiotic, anti-cancer, analgesics, anti-oxidants, anxiety reduction, treatment for depression and preservation of memory.

Process-scale extraction allows multikilogram quantities of functional oils and fractionated materials from plants and fungi to be produced. All intellectual property generated through the extraction methods research that relates to mushroom extraction methods will vest in Absolem and all other intellectual property shall vest in Arev. This will include any scientific information related to organic chemistry extraction technologies.

Mike Withrow, chief executive officer and a director of Arev, has successfully established a cultivation lab and culture facility for growing cordyceps in Ho Chi Minh City, Vietnam. His former company has four NPNs (natural product numbers) for cordyceps registered with Health Canada. Mr. Withrow commented, "Completion of phase 1 gives Arev Brands a stake in the exciting new functional and medicinal mushroom sectors via our holdings in Absolem." He went on to say, "We now are on the way to being able to deliver a proprietary extraction method to the Absolem Extraction JV as planned."

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. Arev's model is to toll process extraction of targeted essential and functional oils and license its formulations to licensed producers in Canada. The company utilizes toll processors in foreign countries to encapsulate and package its formulations that can be sold in traditional distribution channels and on-line.

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