Mr. Ben Nikolaevsky reports

PURE EXTRACTS ADVANCES PLANS FOR THE PROCESSING OF FUNCTIONAL MUSHROOM FORMULATIONS

Pure Extracts Technologies Corp. has provided an update and overview regarding its expansion into the functional mushroom wellness sector.

With interest in functional and medicinal mushrooms climbing sharply, particularly regarding medicinal opportunities, the outlook appears promising for the sector. Pure Extracts has noted recent announcements showing increased institutional interest in the field of psychedelics in general and with a focus on promising mushroom varieties such as psilocybin specifically. As a study candidate, psilocybin is being looked at for treatment options, including depression, anxiety, posttraumatic stress disorder, bipolar disorder, Alzheimer's disease and addiction. The U.S. Food and Drug Administration (USFDA) status on the use of psychedelics appears to be evolving, subsequent to breakthrough therapy status for treatment-resistant depression in 2020, which appears poised to receive approvals in 2021. Recent reports also indicate that the global market for functional mushrooms is forecasted to reach $34.3-billion (U.S.) by 2024 and continues growing at a respectable CAGR (compound annual growth rate) of 8 per cent.

As a result of the encouraging and growing interest in the sector, Pure Extracts has commenced the expansion of its business model to include mushroom formulations through the use of extraction processes that have proved compatible with its existing infrastructure. The company is working closely with its scientific adviser, Dr. Alexander MacGregor, the founder of the Toronto Institute of Pharmaceutical Technology, to develop high bioavailable products and novel delivery methodologies, including pills, capsules and edibles. Furthermore, the company believes that there exists a significant opportunity for it to become an important extraction partner for the commercialization of new functional mushroom products designed with purity and consistency in mind. In that regard, Pure Extracts has signed a letter of intent (LOI) with one of Canada's leading functional mushroom wellness brands to co-develop cannabidiol enhanced mushroom products.

Looking further ahead, Pure Extracts aims to eventually enter the growing field of psychedelic mushroom processing as an additional aspect of its diverse extraction market penetration strategy. In the interim, three functional products, such as lion's mane, turkey tail and reishi, are being created under the Pure Mushrooms brand. In herbal medicine, these products are thought to boost memory, support the immune system or reduce stress. Pure Mushrooms products are projected for availability by the end of first quarter 2021 through direct-to-consumer sales, utilizing the company's capital efficient, e-commerce Web portal. The creation of these products will validate the company's processes and capabilities, and prepare them as additional strains become available.

Company chief executive officer Ben Nikolaevsky noted: "Our brand is an aspirational extension of our location in the mountains of British Columbia. As such, we are 100 per cent focused on high-quality ingredients, formulations and processes in all our efforts. Moving into the field of mushroom extractions is an obvious and exciting opportunity to leverage our advanced technology and proven capabilities. We look forward to launching our functional products commercially within the next few months, and can't help but see the similarities to the cannabis sector regarding the pathways to both medical and recreational legalization. I believe our ability to immediately begin working in this burgeoning sector will create immense value for our business, our stakeholders, partners and shareholders alike."

About Pure Extracts Technologies Corp.

The company 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 GMP (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. On Sept. 25, 2020, Pure Extracts was granted its standard processing licence by Health Canada under the Cannabis Act, and the company's stock began trading on the Canadian Securities Exchange (CSE) on Nov. 5, 2020.

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