Mr. Lachlan McLeod reports

ADASTRA HOLDINGS CONFIRMS CURRENT MANAGEMENT

Adastra Holdings Ltd. has confirmed the current management of the company.

As a result of a review by the British Columbia Securities Commission, the company is issuing the following press release to clarify its disclosure.

In news releases dated Sept. 26, 2024, and Oct. 8, 2024, the company announced that Lachlan McLeod had resigned as interim chief executive officer (CEO) effective Sept. 26, 2024, and as chief financial officer (CFO) and corporate secretary effective Oct. 5, 2024.

Mr. McLeod continues to provide financial services to the company as an external consultant. On Oct. 15, 2024, the company entered into an agreement (the Stornoway agreement) with Stornoway Consulting Corp., an entity controlled by Mr. McLeod. Pursuant to the Stornoway agreement, Stornoway provides certain financial consulting services to the company on a part-time basis, including: (i) assisting management with the preparation and filing of quarterly and annual financial statements with the company's external advisers; (ii) assisting management with the preparation of the company's annual budget; and (iii) supporting the company's external auditor with its annual audit. The Stornoway agreement is effective until May 31, 2025, unless extended by mutual agreement of the parties.

The management activities of the company are currently being performed by the company's board of directors, consisting of Jon Edwards, Andrew Hale and Paul Morgan. The company is in the process of identifying candidates to fill the roles of CEO, CFO and corporate secretary.

About Adastra Holdings Ltd.

Adastra has become one of Canada's leaders in the supply and manufacturing of ethnobotanical and cannabis products for lawful adult use. It serves medical markets and engages in forward-looking therapeutic applications. With cannabis concentrate products sold through retailers at more than 2,000 locations across Canada, Adastra's Phyto Extractions and Endgame Extracts brands are now well established with a growing distribution presence. As a Health Canada-licensed facility, it specializes in extraction, distillation and manufacturing of a range of cannabis-derived products. Adastra partners with health care professionals and practitioners within the regulated environment to create products suitable for the medical cannabis market, with the ultimate aim of addressing the needs of patients.

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