"From Seed to Sale"

Fully Integrated Production Chain can Provide Unique Advantages to Christina Lake Cannabis in Commercializing Distillate Oils

VANCOUVER, British Columbia, Jan. 29, 2021 (GLOBE NEWSWIRE) -- Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) (CSE:CLC) (FRANKFURT: CLB) is pleased to announce that one of its cannabis distillate oils has been certified to have a tetrahydrocannabinol (“THC”) concentration of 90.3% based on a certificate of analysis dated January 15, 2021 from a testing laboratory accredited by Health Canada. The Company recently announced its intent to primarily focus on producing cannabis distillate oils by extracting from its 2020 harvest of 32,500 kg / 71,650 lb of biomass grown under natural sunlight. Based on market demand for distillate oils, which typically contain THC concentrations in excess of 90%, the Company believes it is uniquely positioned in the cannabis marketplace to be a competitive supplier of distillate oils. Additionally, the Company is planning to blend cannabis-derived terpenes with its distillate oils, a combination which has only recently been requested in the Canadian cannabis industry despite being relatively common in other markets.

As a fully integrated producer of cannabis oils, the Company is favourably situated in the Canadian cannabis industry on account of its control over and visibility into the production chain. CLC has a genetic databank consisting of over 100 proprietary cannabis strains and a total inventory of over 600,000 seeds, which it began cultivating outdoors last spring at its facility in Christina Lake, British Columbia with over 950,000 square feet / 88,258 square metres of outdoor grow space. After harvesting and processing the crop, the Company then extracts oils from its dried biomass using its Vitalis R-200 CO2 extraction machine. This year, the Company has been successful in producing commercial quantities of market-ready winterized cannabis oil with distinct terpene profiles, which are sought-after for use in recreational products under Cannabis 2.0 for adult consumers (e.g., vapes, edibles, topicals) as well as in medicinal products.

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In CLC’s January 13, 2021 press release, it was announced that the Company was beginning to produce ultra-high potency cannabis distillate oils, samples of which are presently undergoing independent third-party assessment of THC levels and other metrics. Distillate oils are not commonly used as a standalone product, but rather as an ingredient in products which could be enhanced through the addition of concentrated THC (e.g., food and beverage, personal care, cosmetics). Although the ability to produce cannabis distillate oils is not unique in and of itself, the Company benefits from several advantages it has as a fully integrated producer which can allow for lower risk, above-average profit margins, and greater supervision.