Mr. Kevin Keagan reports

NEXTLEAF PROVIDES A COMMERCIAL UPDATE AND ANNOUNCES AN EXECUTIVE CHANGE

Nextleaf Solutions Ltd. has provided a commercial update and made a senior management change. Chief executive officer Paul Pedersen has left the company and the board of directors has appointed Emma Andrews as interim CEO, effective as of Sept. 8, 2023.

Commercial update

Commercial highlights from Q3 2023:

• Profitable quarter;
• Secured debt free;
• Positive YTD (year-to-date) nine-month EBITDA (earnings before interest, taxes, depreciation and amortization);
• Glacial Gold THC 10 softgels, 50 pack, is the No. 1 softgel SKU (stock-keeping unit) in British Columbia, with 13-plus-per-cent wholesale market share;
• Glacial Gold CBD 3:1 berry lemonade one-gram vape is the top-selling CBD (cannabidiol) vape in B.C.;
• Glacial Gold is the No. 2 softgel brand in B.C.;
• Glacial Gold is the No. 4 oil/tincture brand in B.C.;
• Glacial Gold is the No. 9 vape cart brand in B.C.;
• Launched High Plains live rosin blend vape line in B.C., Saskatchewan and Manitoba;
• Launched 20-plus SKUs into the Manitoba market.

Current highlights from Q4 2023:

• Total current SKU listings of 80-plus across Canada (B.C., Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia);
• Launching into Alberta with seven initial SKUs and three more to follow (10 total);
• Launch of Glacial Gold THC 10 softgel, 100 pack, and Balanced 10:10 softgel, 50 pack;
• Dominating softgel sales in B.C. with Glacial Gold products ranked top 3 within category;
• Aggressively expanding softgel SKUs and gaining new distribution points across Canada (B.C., Alberta, Saskatchewan, Manitoba and Ontario);
• Four new products just launched with OCS (live rosin blend vapes, Max Strength CBD 200 drops, Balanced 10:10 softgels).

Executive change

Nextleaf's board of directors has announced the departure of Paul Pedersen from his role as chief executive officer and president, effective Sept. 8, 2023. Mr. Pedersen had been Nextleaf's CEO and president since inception and remains on the board of directors.

The company has appointed Emma Andrews, BA, RHN, NPDP, to the role of interim CEO. Ms. Andrews has worked closely with Nextleaf leadership and executive team since the company's origin. Most recently, as the director of marketing, she oversaw the company's entry into branded consumer products, and was integral in creating the company's mission, vision, values and corporate identity.

Ms. Andrews has held senior management and public company executive officer roles across every vertical in the cannabis industry, including cultivation/harvesting, processing, retail, ancillary and consumer products. This is in addition to over a decade working in the natural products industry to help scale emerging brands into category leaders.

"I am energized and excited to accelerate Nextleaf's recent performance. The company has achieved some incredible financial milestones, including a profitable Q3 2023, secured debt-free position and a Q3 nine-month YTD positive EBITDA. We are in a strategic commercial position to finish the year off strong," says Mr. Andrews.

"We would like to thank Paul Pedersen for his service since the company's inception. The company is grateful for all his dedication and passion, and would like to acknowledge the critical role his contributions have played in our success. Looking ahead, the leadership team remains committed to the company's commercialization road map, continued financial growth and deepening our operational expertise," Ms. Andrews continues.

About Nextleaf Solutions Ltd.

Nextleaf is a federally regulated manufacturer and distributor of cannabis vapes and oils under its award-winning prohibition-era brand, Glacial Gold. The Vancouver-based company sells its branded products to government distributors and authorized retailers in four provinces in Canada. Nextleaf Labs is a low-cost producer of cannabis oils, and supplier of THC (tetrahydrocannabinol) and CBD to qualified wholesale partners across Canada and internationally. Nextleaf's patented ingredient processing technology transforms unsold cannabis and hemp biomass into high-purity distillate at an industrial scale. The company has been issued 15 U.S. patents and 75 patents globally on cannabinoid processing, including extraction, distillation and acetylation.

Nextleaf trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB market in the United States and L0MA on the Frankfurt Stock Exchange.