Mr. Nicholas Sosiak reports

CANNARA SECURES EXCLUSIVE CANADIAN RIGHTS TO BLUE RIVER'S AMPERSAND™ LIVE ROSIN INFUSION TECHNOLOGY

Cannara Biotech Inc. has entered into an exclusive agreement with Blue River of Florida LLC to manufacture, commercialize and distribute products in Canada using Blue River's proprietary Ampersand live rosin infusion technology.

Ampersand is an innovative ingestible cannabis extract designed to allow adult consumers to experience live rosin in a convenient, non-combustible oral format. Live rosin is a premium solventless cannabis extract known for preserving the plant's natural terpene profile, flavour and full-spectrum characteristics. Traditionally, live rosin has been consumed through inhalable formats. Ampersand is designed to bring those same sought-after solventless attributes into an ingestible format that dissolves orally.

Cannara expects to launch its first Ampersand products under the Nugz brand in five-gram containers containing 500 milligrams of THC, subject to applicable regulatory approvals and provincial listing processes. The format is intended to provide consumers with portioned ingestible extract option while expanding the company's premium product portfolio beyond traditional dried flower, preroll, vape and concentrate categories.

"Ampersand is more than a single product launch," said Nicholas Sosiak, chief operating officer and interim chief financial officer of Cannara. "By combining Blue River's proprietary technology with Cannara's solventless expertise, product development capabilities and national commercial platform, we believe we are well positioned to introduce live rosin in a new ingestible format under the Nugz brand. This platform has the potential to support future formats and extend Cannara's premium product portfolio into new categories."

"We're excited to partner with Cannara to bring Blue River's Ampersand technology platform to the federally regulated Canadian cannabis market," said Tony Verzura, founder and chief executive officer of Blue River. "Cannara's commitment to quality, solventless cannabis and long-term product development made them a natural partner for Blue River. We look forward to working together to commercialize Ampersand in Canada and explore future opportunities for collaboration."

Under the agreement, Cannara will hold exclusive Canadian rights to manufacture and commercialize Ampersand infused live rosin ingestible products. The partnership leverages Cannara's vertically integrated cultivation, solventless extraction, manufacturing and national distribution capabilities, together with Blue River's proprietary formulation technology. The agreement also provides a framework for future product development and potential international commercialization opportunities, subject to applicable regulatory requirements.

Cannara and Blue River have begun product development and commercialization activities, with the first Nugz Ampersand products expected to launch through provincial distributors following customary regulatory and listing processes.

About Cannara Biotech Inc.

Cannara Biotech is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products. Cannara owns two mega facilities based in Quebec spanning over 1.6 million square feet, providing the company with 100,000 kilograms of potential annualized cultivation output. Leveraging Quebec's favourable energy costs, Cannara maintains an efficient, low-cost production model.

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