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LEADERS IN EXTRACTION

C O R P O R A T E P R E S E N T A T I O N Q 4

© 2019 Pure Extracts Corp. 2

LEGAL

This presentation does not constitute an offer of any

securities for sale or a solicitation of an offer to purchase any

securities. This Presentation, and the information contained

herein, is not for release, distribution or publication into or in

the United States or any other jurisdiction where applicable

laws prohibit its release, distribution or publication. This

Presentation is being issued by Pure Extracts Corp. (the

“Company”) for information purposes only.

The contents of this Presentation are confidential and may

not be copied, distributed, published or reproduced in whole

or in part, or disclosed or distributed by recipients to any

other person. No reliance may be placed for any purpose

whatsoever on the information or opinions contained in this

Presentation or on its completeness, accuracy or fairness.

No person should treat the contents of this Presentation as

advice relating to legal, taxation or investment matters, and

must make their own assessments concerning these and

other consequences of investing in securities of the

Company, including the merits of investing and the risks.

Prospective investors are advised to consult their own

personal legal, tax and accounting advisors and to conduct

their own due diligence and agree to be bound by the

limitations of this disclaimer.

Certain statements in this Presentation may constitute

forward-looking information within the meaning of applicable

securities laws. Generally, forward-looking information can

be identified by the use of forward-looking terminology such

as "expects," "believes," "anticipates," "budget,“ scheduled,"

"estimates," "forecasts," "intends," "plans," and variations of

such words and phrases, or by statements that certain

actions, events or results "may," "will," "could," "would," or

"might," "be taken," "occur," or "be achieved." Certain

statements, beliefs and opinions in this Presentation

(including those contained in graphs, tables and charts),

which reflect the Company’s or, as appropriate, the

Company’s directors’ current expectations and projections

about future events, constitute forward-looking information.

Forward-looking information contained in this Presentation is

based on certain assumptions regarding, among other

things, expected growth, results of operations, performance,

industry trends and growth opportunities. While management

considers these assumptions to be reasonable, based on

information available, they may prove to be incorrect. By

their nature, forward-looking statements involve a number of

risks, uncertainties and assumptions that could cause actual

results or events to differ materially from those expressed or

implied by the forward-looking statements. These risks,

uncertainties and other factors include, but are not limited to

risks associated with general economic conditions; adverse

industry events; marketing costs; loss of markets; future

legislative and regulatory developments; inability to access

sufficient capital from internal and external sources, and/or

inability to access sufficient capital on favourable terms;

income tax and regulatory matters; the ability of the

Company to implement its business strategies including

expansion plans; competition; and changes in regulation.

The foregoing factors are not intended to be exhaustive.

These risks, uncertainties and assumptions could adversely

affect the outcome and financial effects of the plans and

events described herein. Forward-looking statements

contained in this Presentation regarding past trends or

activities should not be taken as a representation that such

trends or activities will continue in the future. The Company

does not undertake any obligation to update or revise any

forward-looking statements, whether as a result of new

information, future events or otherwise.



MISSION

Leaders in Extraction

Producing high quality extract products for recognized brands, including our own

nationally-recognized PURE PULLS product line.


WHAT WE DO FORMULATION02

BRAND

DEVELOPMENT03

EXTRACTION01

We are experienced

& qualified experts


MARKET OPPORTUNITY

SHIFTING

OPPORTUNITY


The Cannabis Extract Market is at the Infancy of Development

Canada's cannabis industry is currently

dominated by dried flower products

with only an estimated 13% market share

by extract products. In the US it is 50%

of the market.

EXTRACTS TO

DRIVE CANNABIS 2.0

Deloitte estimates the alternative

Canadian cannabis market to be worth

$2.7 billion annually with extracts account

for over 50% of the market share

EARLY STAGE

PENETRATION

There are currently no dominant brands

in the cannabis sector, Pure Extracts is

leading the development of this new

segment in Canada


Eliminate Guesswork: Our proven processes deliver superior extracts

COMPETITIVE ADVANTAGE


LEADERS IN EXTRACTION Knowledge creates clear competitive advantage

OVER 5 YEARS OF ACTIVE RESEARCH, DEVELOPMENT & PRODUCTION

SUPER/SUB

CRITICAL CO2

Capsules

Tinctures

Vapes

Topicals

Beverages

Edibles

Sprays

Others

PURE EXTRACTS

Experience

is the Difference

We Know

Product Purity.

Decades of Cannabis Experience

Nationally Recognized Brand

Established Product Line

Highly Technical Expertise

Bulletproof Methodology

Standardized Operating Procedures

First Mover Advantage


PURE PULLS

Pure Pulls illustrates best practice purity in manufactured products

that meet or exceed quality expectations.

Established Goodwill with repeat customers exhibits brand loyalty

Widespread and pre-existing Canadian Product Acceptance

Brand equity awareness developed through Compliant Event

Sponsorship and ongoing Product Engagement

Industry Leading distributor retention and renewal plan in place

Superior Technology Investment - Mass Production Capability

Nationally Recognized Private Label Brand.PURE PULLS

CBD 1:1

Re-Usable

Vape Pen

500mg

CO2 Oil

Charger

Included

PURE PULLS

CartridgeSATIVA

500mg

CO2 Oil

First of It’s Kind


PRODUCT DEVELOPMENT STRATEGY

CURRENT

PHASE 2Q1 2020

Tinctures

Soft gels

Vape pens

PHASE 3H2 2020

Edibles

Oral Sprays

Topicals

QUALITY DEVELOPMENTPure Extracts’ Long-term Product Expansion Plan will be

strategically rolled out in the following phases.

PHASE 1

Innovative Products

Concentrates

Beverages


BUSINESS MODEL

PURE EXTRACTS

Formulation Expertise

Private & White Label Sales CURRENT AND FUTURE

TOLLING

DRIED

CANNABIS

PURCHASES

BEVERAGES

EDIBLES

OIL BASED PRODUCTS TOPICALS / TINCTURES

SOFTGELS

VAPEABLES

White Label

Private Label

Scalable

Production

Percentage

of extract products

return to supplier

as cost offset (Toll)


THE FACILITY

Current facility of 10,000 sq. ft.

Phase I Expansion to 25,000 sq. ft. underway

Building to EU-GMP certifications for international distribution

Dedicated lab and packaging spaces

Provisional municipal license granted

Modern CO2 extraction capabilities & processes

Designed with growth in mind. Easily scalable.

CENTRALIZED FACILITY FOR TOLL PROCESSING,

PRIVATE & WHITE LABELLED PRODUCTION



MILESTONES

Q3 Q4 Q4 Q1 Q2

Commence operations

& sales

Begin sales of

nationally recognized

Pure Pulls brand and

expand product line

Health Canada

Standard Processing

License

EU-GMP

facility certification

for high-growth

EU cannabis market

Health Canada Standard

Processing License

Secure distribution with

provincial government

cannabis boards

Supply, tolling, and white

label contracts secured

Completion of

10,000 sq. ft. state-of-

the-art cannabis

extraction facility

2019 2020

Fully funded the

expansion of

existing facility up

to10,000 sq. ft.

Passed Health Canada

High Level Review

Submit evidence package

to Health Canada


COMPARABLES AND CAP TABLE

Share prices as of Oct. 16, 2019; Valens, Medipharm and Neptune data is from the GMP research report “Extracting profits for concentrate returns” dated April 9, 2019, Eight Capital Oct 17, 2019 Valens

research update, Haywood Oct 17, 2019 Valnes research update, Valens Oct., 2019 corporate presentation. Nextleaf data is from the Ubika Alpha research report dated May 8, 2019.

SHARES VALUE

Pure Extracts Pre-Money 50,833,334 $25,416,667

Financing @ $0.50 20,000,000 $10,000,000

Post-Money 70,833,334 $35,416,667

Comparable Companies ($ in thousands, except per share amounts)

CAPITALIZATION VALUATION STATISTICS

Share Equity Enterprise 2020 2020 Enterprise ValueCompany Name Ticker Price Value ($MM) Value ($MM) Capacity (kg) Revenue ($MM) EBITDA ($MM) Revenue EBITDA

Valens Grow Works VGW $3.29 400 332 240,000 167 76 2.0 x 4.4 x

Medipharm Labs Corp LABS $4.19 544 469 150,000 213 81 2.2 x 5.8 x

Neptune Wellness Solutions NEPT $4.59 373 373 30,000 73 51 5.1 x 7.3 x

Nextleaf Solutions OILS $0.39 41 39 100,000 N/A N/A N/A N/A

Radient Technolgies Inc. RTI $0.56 149 149 280,000 N/A N/A N/A N/A

Median $373 $332 150,000 167 76 2.20 x 5.79 x

Pure Extracts $0.50 $35.0 $25.0 122,400 65 23 0.38 x 1.10 x

Implied Valuation $143.03MM $131.64MM


SUMMARY

LEADER

EXTRACTION ONLYHIGH MARGIN + GROWTH

NATIONALLY RECOGNIZED

BRAND SCALE NEAR-TERM REVENUE

PREDICTABLE CASH

FLOW

M&A AND INTERNATIONAL

GROWTH OPPORTUNITIES

01 02 03 04 05 06 07

PURITY STARTS HERE. RIGHT IN OUR BACKYARD.

Thank You

Pure Extracts Corp.

9387 Emerald Drive

Whistler, BC V8E 0G5 Canada

[email protected]

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