Mr. Ben Nikolaevsky reports

PURE EXTRACTS ENTERS INTO BIOMASS PURCHASE AGREEMENTS TO SUPPORT OIL EXTRACT PRODUCTION

Pure Extracts Technologies Corp. has entered into its first substantial biomass purchase agreements to scale up its production of both THC (tetrahydrocannabinol) and CBD (cannabidiol) extracts.

The company has recently agreed to purchase 220 kilograms of high-potency THC cannabis dried flower from a large, Canadian licensed producer, and it has also agreed to purchase 1,000 kilograms of high-potency CBD biomass from a top, Western Canadian cultivator. With biomass prices touching new lows, the company believes that the timing was right for its first strategic purchases, which will drive revenue growth in first quarter 2021.

The cannabis will be used to produce full-spectrum (FSO) THC oil with a minimum purity of 67 per cent and distillate with a minimum purity of 86 per cent. The hemp will be used to produce full-spectrum (FSO) CBD oil with a minimum purity of 66 per cent and distillate with a minimum purity of 85 per cent. From these two biomass purchases alone, the company will be able to produce approximately 70 kg of CBD distillate and 25 kg of THC distillate. At current wholesale prices of $6,000 per kg and $6,800 per kg, respectively, this biomass could lead to $590,000 in near-term sales revenue.

Pure Extracts chief executive officer Ben Nikolaevsky remarked: "Having a stockpile of biomass makes sense for us now as Pure Extracts starts to build its name in the elite category of extractors. We are looking forward to showcasing our world-class products and consistently ramping up revenue this year."

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 practices) 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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