Mr. Ben Nikolaevsky reports

PURE EXTRACTS PROVIDES CORPORATE UPDATE

Pure Extracts Technologies Corp. has provided a brief summary of recent activities.

Now that summer is here and the emergency health measures in Canada are moving toward a return to normalcy, the company is enjoying continued business momentum and an increase in activity throughout every aspect of its enterprise operations. Recent events since its last update, combined with the continuing positive energy the company is experiencing, led it to conclude a timely update would prove of interest to its growing base of partners, stakeholders and shareholders alike.

Market awareness and revenues

The company is extremely pleased to advise that after an extensive period of regulatory adjustment, it has achieved national consumer recognition for its Pure Pulls product brand at awareness levels better than what it experienced during the historically successful origins of the company. With the onset of summer activities, less stringent health conditions, and unleashing of pent-up demand for social and cultural events, it is confident that its expanded product lineup will quickly translate into increased visibility and sales. With revenues accruing as of its late spring commercial launch, the company forecasts month-over-month growth as it continues to build momentum throughout the summer months and beyond.

Product updates

Recent updates to its Pure Pulls product mix include production of innovative one-gram, full-spectrum oil (FSO) and vape cartridges to meet a growing trend toward larger cartridges. These cartridges offer a selection of some of the company's 30-plus proprietary cannabis FSO formulations, including Super Lemon Haze, Grand Daddy Purple and GSC.

Pure Extracts' timely strategic move into the edibles market has also led to several outstanding opportunities led by its Pure Chews brand lineup. This includes increased interest and visibility derived from its recent licensing agreement with United States-based Taste-T LLC, manufacturer of the Fireball gummi brand, which is generally recognized on both sides of the border as the most visible brand in the sector. With the commissioning of the proprietary manufacturing equipment supplied by Taste-T, including its innovative blister packaging, Pure Chews has a consistent manufacturing process, offering superior product characteristics and scalable production efficiencies.

Supply agreements

Canadian sales opportunities now include supply arrangements either in progress or nearing execution with provincially licensed outlets in Alberta, British Columbia, Saskatchewan and Ontario. Its transaction with a multistate operator (MSO) in Michigan continues to move forward, and the company hopes to have that closed over the next few weeks. It is excited about its expansion plans into the United States as Michigan is one of the largest per capita consumers of recreational cannabis in the United States. According to information both public and provided by regional stakeholders, Michigan had sales of over $180-million for cannabis and cannabis-derived products in March, 2021. Local competitors have publicly and regularly announced they have sold out of gummi and vape products, which suggests that sales of the company's branded Pure Chews and Pure Pulls products could perform extremely well in this growing market, where there are few if any current market leaders.

White-label sales

Pure Extracts' Canadian white-label business continues to gain attention, interest and customers. The company has already signed Flo Brands Inc. as a craft brand customer from British Columbia, along with a similar project for a large hemp producer also located in British Columbia. There are two additional brand operators in late-stage negotiations which have indicated they are currently out of contract and prepared to shift their product manufacturing from an existing licensed producer (LP) over to Pure Extracts. In the United States, its previously mentioned MSO partner in Michigan has indicated that along with co-locating Pure Extracts USA Inc. manufacturing equipment to produce Pure Pulls and Pure Chews products regionally, it would also become Pure Extracts USA's first white-label customer in America.

Functional mushrooms and on-line sales

Pure Extracts has recently launched its products on the Abba Medix medical on-line website to generate sales from the medically regulated industry segment focused on military veteran patients. Additionally, the functional mushroom product sector continues to grow with the commencement of sales on Amazon USA. Amazon Canada sales are nearing commencement with sales on both sides of the border anticipated to be fully under way and on target by fourth quarter. Platform sales will see additional products coming on-line in third quarter with the addition of lion's mane and a mushroom oil extract tincture product, bringing the total number of retail SKUs to 24, many of which are already available through retail outlets or as select offerings on-line.

Company chief executive officer Ben Nikolaevsky noted: "Our business model is rapidly growing both in terms of revenue and through the advancement of product and partner development. Here in Canada, with over 75 per cent of the eligible population having received at least one vaccination shot and caseloads dramatically decreasing, a sense of optimism is growing daily. Dispensary rollouts are ramping up in the key Ontario market, and our products are making their way to the shelves in four provinces. We have received some new equipment, and there is more on the way that will subsequently make us one of the most efficient, lowest-cost producers of cannabis extracts in North America. Our hard work and commitment to excellence were never a part of the problem over the past year and a half, and with the health restrictions receding, we are now ideally positioned to unlock the value those efforts have created. We believe this is a breakout opportunity for our company and hope we can personally meet many of our stakeholders, partners and shareholders in the coming months to thank everyone for their exceptional assistance and faith in us. After all, although purity starts here is a simple statement, it reminds us of exactly what we do. Thank you all."

About Pure Extracts Technologies Corp.

Pure Extracts Technology features an all-new, state-of-the-art processing facility located just 20 minutes north of world-famous Whistler, B.C. The bespoke facility has been constructed to European Union good manufacturing practice standards, aiming toward export sales of products and formulations, including those currently restricted in Canada, into European jurisdictions, where they are legally available. Health Canada, under the Cannabis Act, granted Pure Extracts its standard processing licence on Sept. 25, 2020. The company's stock began trading on the Canadian Securities Exchange on Nov. 5, 2020.

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