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File: '\\doc\emailin\20211021 130945 Attachment Adastra - News Release announcing IR Agreement with Hybrid Financial L
--->td. - October 2021.DOCX'


ADASTRA HOLDINGS LTD. ENGAGES HYBRID FINANCIAL LTD.

FOR IMMEDIATE RELEASE

Langley, BC, October 21, 2021 - Adastra Holdings Ltd. (formerly Phyto Extractions Inc.) (CSE: XTRX) (FRA: D2EP) ("Adas
--->tra", or the "Company") is pleased to announce that it has retained Hybrid Financial Ltd. ("Hybrid") to provide market
--->ing services to the Company. Hybrid has been engaged to heighten market and brand awareness for Adastra and to broaden
---> the Company's reach within the investment community.

Hybrid has agreed to comply with all applicable securities laws and the policies of the Canadian Securities Exchange i
--->n providing the services.

Hybrid has been engaged by the Company for an initial period of six (6) months starting May 3, 2021 (the "Initial Term
--->") and then shall be renewed automatically for successive three (3) month periods thereafter, unless terminated by the
---> Company in accordance with the agreement. Hybrid will be paid a monthly fee of $22,500, plus applicable taxes, during
---> the Initial Term.

About Adastra Holdings Ltd.:

Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innova
--->tive ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking t
--->herapeutic applications. Adastra is renowned throughout Canada for its popular line of Phyto Extractions branded canna
--->bis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also o
--->perates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC., foc
--->used on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has now successfully taken t
--->he first steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Ps
--->ilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances D
--->ealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a dru
--->g formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B.C.
---> Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic 
--->therapies, working alongside doctors and healthcare professionals within the regulated environment to help create effi
--->cacious remedies that address the actual needs of patients.

About Hybrid Financial Ltd.:

Hybrid is a sales and distribution company that actively connects issuers to the investment community across North Ame
--->rica. Using a data driven approach, Hybrid provides its clients with comprehensive coverage of both American and Canad
--->ian markets. Hybrid has offices in Toronto and Montreal.
ON BEHALF OF THE BOARD
ADASTRA HOLDINGS LTD. (CSE: XTRX)
Donald Dinsmore, Chief Operating Officer
P: (778) 715-5011, E: Donald@adastralabs.com
Cody Simpson, Communications Manager
P: (778) 715-5011, E: cody@adastraholdings.ca
The Canadian Securities Exchange has not reviewed or approved the contents of this news release.