Christina Lake Cannabis Corp. announced that it is beginning to produce ultra-high potency cannabis distillate oils from its 32,500 kg /71,650 lb harvest of sun-grown cannabis cultivated during the Company’s inaugural growing season, which can enable the Company to form supplier relationships with consumer packaged goods manufacturers. Distillate oils, which typically contain tetrahydrocannabinol concentrations in excess of 90%, are generally used to add THC to consumable products as opposed to being directly consumed by a legal-aged end user. As an ingredient in a finished product, distillates can be likened to flour or granulated sugar in that they are not utilized as a standalone cannabis product, whereas products such as dried flower or winterized oil would commonly be used independently. Given the growing popularity of products under “Cannabis 2.0” that are made with cannabis oils, the Company anticipates that its ability to produce oils in commercial quantities could create opportunities to supply distillate to CPG manufacturers in Canada on a wholesale basis. Additionally, because CLC’s extraction machine (Vitalis R-200-H-GMP-SS) is CO2-powered, cannabis oils made by the Company could qualify for GMP certification, thereby potentially allowing its distillates to be sold in the European Union. Distillate produced by Christina Lake Cannabis is unique in the cannabis industry for two main reasons. Primarily, CLC’s vertically integrated cultivation, processing, and extraction operations allow the entire journey from seed to finished extract to occur on the same site, allowing for full control of and visibility into workflows as well as lower net costs. Secondarily, because the biomass from which the distillates are derived are proprietary cannabis strains that are grown outdoors under sunlight, CLC’s distillate oils have a unique texture that could improve usability in certain types of consumer products. At this time, the Company is pursuing supplier relationships with CPG manufacturers who could offer an enhanced experience to legal-aged consumers of cannabis through the addition of THC. Target CPG segments include food and beverage, cosmetic/personal care products, and vaporizer cartridges. Based on projected crop yields for the Company’s growing season in 2021 and the capacity of its Vitalis extraction machine, the Company predicts it can reliably produce commercial quantities of distillate oil that is of a consistent quality and suitable for CPG manufacturers to use in their products.