Mr. Chris Rebentisch reports

1933 INDUSTRIES HARVESTS FIRST COMMERCIAL CANNABIS CROP IN CALIFORNIA, EXPANDS CANNA HEMP DISTRIBUTION AND PROVIDES MARKET UPDATE

Further to 1933 Industries Inc.'s news release dated Jan. 7, 2020, the first harvest of cannabis plants from the company's California operation is currently under way and the company has commenced distribution of California-compliant full-spectrum Canna Hemp products to dispensaries in the state.

First commercial harvest marks the California debut of AMA and Blonde cannabis products

Following the completion of a combined 20,000-square-foot expanded cultivation, extraction, manufacturing and distribution facility in the Los Angeles area, the company began harvesting its first cannabis crop this week to be utilized for both its proprietary brand Alternative Medicine Association (AMA), as well as for its licensing partner luxury brand Blonde cannabis, with products earmarked for dispensaries for the first time outside of Nevada. With crops of Mimosa and SFV OG, the harvest will be utilized for AMA premium packaged flower, prerolls and Blonde products. Over a period of approximately three weeks, harvested plants will enter a drying and curing process and laboratory testing with product expected to be available in early March.

Full-spectrum Canna Hemp cannabidiol (CBD) products entering the competitive California market

The company established local manufacturing for its proprietary cannabidiol wellness line containing California-compliant full-spectrum CBD for direct distribution to local dispensaries. The company reports that the initial run of 30,000 units of full-spectrum CBD Canna Hemp products passed required state compliance testing and will be delivered to dispensaries this week. Initial products available include Canna Hemp elixirs, vape pens and cartridges and Canna Hemp X elixirs, with Canna Hemp relief creams available later in February.

Market update and management commentary by Chris Rebentisch, chief executive officer:

"While the landscape of the entire cannabis sector has changed dramatically and continues to be under pressure, we would like to reassure our investors that the current share price does not reflect our business operations as we continue to execute our strategy. With two capital projects now completed, we are on track to deliver two key infrastructure projects over the next several months that will allow us to fully control our input materials, lower our costs of production, increase our revenues and margins with profitability as our key priority in fiscal 2021 and beyond. We are continuing to achieve further efficiencies across our operations, managing our cash position conservatively and controlling expenses to endure current market conditions.

"Nevada cultivation, tetrahydrocannabinol (THC) extraction expansion and good manufacturing practice (GMP) hemp extraction lab updates

"We are on schedule to harvest commercial crops every 14 to 18 days from the Las Vegas cultivation facility starting in March. We have five harvest zones with plants growing in various stages for four of the five zones. We are pleased to report that the biomass from the first harvest from this facility has been utilized to produce our line of high-value concentrates for the Nevada market and leverage one of most exciting verticals within the cannabis industry.

"On Jan. 27, we submitted a third round of comments to the Clark County Building Department (CCBD) for the expansion of our THC extraction facility. A construction schedule will be forthcoming once the building permit is awarded. In the meantime, we have prepared work for electrical upgrades to the facility.

"Although the peer review of the customized extraction equipment for the GMP hemp extraction lab has not been completed to date, we are still on track to deliver this project mid-year. We continue to make progress in building design and equipment engineering. We report that the distillation system has been delivered to the facility in Las Vegas. All milestones will be reported until the final completion of this project.

"Our focus continues to be the strengthening of our existing operations in Nevada with increased production capacity, the growth of our California operations and the generation of new revenue from that market and the advancement of our capital initiatives while capitalizing on the sale of our line of CBD Canna Hemp products across the attractive U.S. cannabis markets. A revamped e-commerce website for Canna Hemp will be launched this Friday with a direct to consumer strategy. Our company's mission is to provide safe products that focus on the benefits of the plant and that are in line with consumer demands, offering quality of ingredients and consistency at affordable prices."

About 1933 Industries Inc.

1933 Industries is a vertically integrated, growth-orientated company, focusing on the cultivation and manufacturing of cannabis consumer-branded goods in a wide range of product formats. Operating through two subsidiaries, the company controls all aspects of the value chain with cultivation, extraction, processing and manufacturing assets supporting its diversified portfolio of cannabis brands and licensing partners.

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