Mr. Philip Campbell reports

LUFF ENTERPRISES ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND PROVIDES CORPORATE UPDATE

Luff Enterprises Ltd. has released its financial results for the first quarter of 2022 and has provided a corporate update.

The first quarter of 2022 was a transitional period for the company as it downsized its operations footprint and focused on preserving cash and working capital balances. As at March 31, 2022, Luff had cash balances of $3.2-million and positive working capital of $5.2-million.

The company's key strategic initiatives for the remainder of 2022 are to further expand its on-line sales channels in the United States, and to launch a new on-line sales initiative in Canada. To achieve this, the company is actively pursuing opportunities to acquire an existing licensed producer in Canada. The company is also pursuing opportunities to establish an on-line wellness marketplace. This aligns with the company's vision of providing high-quality wellness products that empower the lives of the company's customers.

Luff's direct-to-consumer business model will allow the company to connect growers and product manufacturers to users, providing better selection and fresh product at great prices. This will result in higher gross margins and efficiencies. This model will also include implementing new and expanded direct-to-consumer marketing campaigns to bring awareness to Luff's brands and product offerings.

Philip Campbell, Luff chief executive officer, commented: "This on-line marketplace strategy allows us to offer a broader range of competitively priced products while capturing intermediary margins by selling directly to the final consumer. With the large oversupply of cannabis in Canada and the compression of wholesale prices, we believe this capital-efficient, technology-focused strategy will allow us to scale up sales quickly and efficiently while capturing strong gross margins."

Through the successful execution of this strategy, the company's ultimate goal is to become the premier on-line cannabis dispensary in North America.

A complete set of Luff's interim consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2022, will be filed on SEDAR and posted on the company's website.

About Luff Enterprises Ltd.

Luff is a hemp and wellness company, focused on providing premium quality, innovative products across the United States through its on-line store. Committed to plant-based science, Luff produces and sources a suite of thoughtfully designed products to benefit a wide range of user needs.

Currently, the company focuses on identifying unique products and formulations leveraging cannabinoids to empower people to realize the full potential of everyday life. Luff's scientifically formulated products are non-GMO (genetically modified organism), THC-free, third party tested and only crafted with hemp grown in the United States.

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