Mr. Philip Campbell reports

HERBAL DISPATCH SECURES EU-GMP PROCESSING PARTNERSHIP TO ACCELERATE GERMAN AND EUROPEAN EXPORT GROWTH

Herbal Dispatch Inc. has entered into an exclusive strategic supply agreement with a EU-GMP-licensed (European Union Good Manufacturing Practice) cannabis processor based in Portugal.

The agreement establishes a long-term international commercialization framework through which Herbal Dispatch's Canadian cannabis products may be exported to the processor's EU-GMP-certified facility for processing, packaging and distribution into regulated European medical cannabis markets.

Initial export shipments have already been successfully completed and the parties are now positioned to scale international distribution volumes as market demand continues to expand and European import processes become increasingly streamlined.

Herbal Dispatch has established a growing international medical cannabis commercialization network spanning multiple regulated global markets including Australia, Portugal, Germany, Brazil, Czech Republic, United Kingdom, Switzerland and Costa Rica, positioning the company as an emerging participant within the global medical cannabis supply chain.

In January, 2026, Herbal Dispatch announced the completion of a 298-kilogram export of medical cannabis destined for Germany's medical cannabis market through Portugal, marking a significant milestone in the company's international expansion strategy. Following the success of this shipment, Herbal Dispatch expanded its relationship with the Portugal-based group into a broader strategic export partnership designed to support scalable long-term distribution opportunities into Germany and additional regulated international medical cannabis markets.

Herbal Dispatch believes its Portugal-based export infrastructure and EU-GMP processing relationships provide the company with a highly strategic gateway into the European medical cannabis market enabling efficient international commercialization, enhanced regulatory coordination and scalable long-term export growth opportunities.

Leveraging EU-GMP infrastructure

Through this exclusive partnership, Herbal Dispatch is advancing its entry into key European jurisdictions, including Germany, one of the fastest-growing medical cannabis markets globally. Germany's pharmacy-based distribution model, combined with continuing regulatory reform, continues to drive increasing demand for high-quality, EU-GMP-compliant cannabis products.

EU-GMP-certified processing capacity in Europe remains constrained relative to demand, creating a structural bottleneck for companies seeking compliant access to these markets. By partnering with an established EU-GMP processor, Herbal Dispatch is able to leverage existing pharmaceutical-grade infrastructure, significantly reducing capital requirements while accelerating time to market.

In addition to dried cannabis flower, the Portuguese processor is capable of processing cannabis extracts and derivative products. This positions Herbal Dispatch to supply higher-value formats such as vape oils, hash and other cannabis concentrates into regulated European markets, expanding both product breadth and margin profile.

Regulatory tailwinds accelerating export timelines

The company also notes a near-term regulatory improvement in Portugal, with the transition to a digital import permit system for cannabis imports from Canada. This transition, expected to be implemented soon, is anticipated to reduce permit processing timelines from approximately six weeks to as little as seven business days. This development is expected to materially increase shipment velocity, improve working capital efficiency and support the scaling of Herbal Dispatch's European export program.

"This relationship represents a meaningful step forward for our international strategy. Europe -- particularly Germany -- continues to be one of the most attractive medical cannabis markets globally, and this partnership provides a scalable pathway to participate in that growth," commented Philip Campbell, chief executive officer of Herbal Dispatch. "With initial shipments now completed and permitting timelines expected to shorten materially, we believe we are entering a new phase where our European export business can operate in a more efficient and consistent manner."

The company intends to build on this relationship to increase shipment frequency, expand into additional EU markets and broaden its product portfolio over time. Herbal Dispatch will provide further updates as export activities continue to scale.

About Herbal Dispatch Inc.

Herbal Dispatch is a leading operator of cannabis e-commerce platforms in Canada, delivering quality medical and recreational products to discerning consumers at competitive prices. Its flagship marketplace has earned trust as a premier destination for exclusive access to small-batch craft cannabis and a wide selection of curated cannabis products. The company is also actively expanding through exports to international markets, positioning it for sustained growth and new revenue opportunities. The company's common shares trade on the Canadian Securities Exchange under the symbol HERB.

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