An anonymous director reports

CHRISTINA LAKE CANNABIS CONCLUDES REVIEW OF UNSOLICITED PROPOSALS AND WILL REMAIN INDEPENDENT

The special committee of Christina Lake Cannabis Corp.'s board of directors has completed its review of the unsolicited proposals announced on Aug. 21, 2026, and Sept. 15, 2026, and recommended that the company not proceed with either transaction. Based on a number of factors, including an improved business outlook and a strong 2026 harvest, the special committee believes that remaining independent at this time offers the potential for greater value for Christina Lake Cannabis's shareholders.

On Aug. 21, 2026, Christina Lake Cannabis announced that it had entered into a non-binding letter of intent dated Aug. 20, 2026, with a private Alberta corporation (the original purchaser). The initial LOI provided for due diligence and negotiations on a proposed transaction, under which the original purchaser would acquire all of the issued and outstanding common shares of the company.

On Sept. 15, 2026, Christina Lake Cannabis announced that it had received a second, unsolicited offer from an arm's-length third party (the alternative purchaser) to acquire substantially all of the assets of Christina Lake Cannabis. Christina Lake Cannabis entered into a second non-binding letter of intent in respect of that offer.

The special committee was formed in August, 2026, to review the merits of the original transaction. The board of directors then directed it to evaluate the alternative transaction as well. On Oct. 26, 2026, the special committee recommended that the company not enter into a definitive agreement for either transaction, and the board accepted that recommendation.

The special committee concluded that neither proposal offered sufficient value to warrant a recommendation to shareholders or to be likely to obtain shareholder approval. In reaching this conclusion, the special committee considered the company's successful 2026 harvest, its increased focus on the cultivation and sale of cannabis flower, its continuing initiatives to reduce costs and increase cultivation capacity, and its continued repayment of debt. The special committee believes that remaining independent will allow the company to pursue these initiatives and offers the potential for greater long-term value for shareholders.

Each of the original purchaser and the alternative purchaser has been notified of the special committee's decision. No definitive agreement was entered into for either proposed transaction.

Christina Lake Cannabis thanks both parties for their interest in the company and their co-operation throughout the process.

About Christina Lake Cannabis Corp.

Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act with a standard cultivation licence and corresponding processing amendment from Health Canada as well as a research and development licence. Christina Lake Cannabis's facilities consist of a 32-acre property, which includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction, and a 342-acre property, which includes approximately 100 acres of licensed outdoor grow space, greenhouses and a dry room. Christina Lake Cannabis focuses its production on creating high-quality outdoor flower, extracts and distillate for its B2B (business-to-business) client base.

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