Following Successful Year Nepra Foods Issues Letter from CEO - Seite 2

We are expanding our domestic production base, specifically the number of products that will be manufactured in our Colorado facility, to further minimize business risk and ensure product quality. In the first quarter of this year, we will ramp up manufacturing of our textured hemp protein product (THP™) for use in our new consumer products (i.e. PROPASTA^TM) in addition to having excess capacity to facilitate wholesale sales and product partnerships. Textured hemp protein is an exciting new addition to the plant-based protein market offering which has many advantages over the conventional textured vegetable proteins currently available in the market. As such, food producers are anxiously awaiting new, nutritious, functional proteins to add to their products allowing them to get away from soy, gluten, and other allergens. The addition of textured hemp protein to our wholesale line of ingredients will be a significant addition to revenue with strong margins.

In the development of the PROPASTA™ consumer line, the R&D staff at Nepra has developed several new proprietary formulations. The components of our consumer products, such as the high protein pasta and plant-based cheeses, are very unique in the industry and will disrupt the retail frozen food section. However, our goal at the company is to make it easier for everyone to eat healthier. Many people that eat out at restaurants or at institutional facilities, such as schools and commissaries, are also looking for new plant-based options. In addition to selling into retail, the components that go into PROPASTA™ meals will be sold into these institutional markets. This sales strategy has been executed by other plant protein manufacturers with great success. However, most of our competitors in this space still use soy and wheat that are allergens and make it difficult for institutions to adopt. Being that our products are allergen-free as well as gluten-free will be a big advantage for us in these channels.

In summary, I see this year as a breakout year for Nepra Foods. The success of our IPO and strong shareholder base combined with access to the public market allow us to rapidly accelerate our growth . To me, the COVID pandemic seems to be changing the way people eat. Our tagline "The Evolution of Eating™" really sums up my view of the changes we should expect in not only the wants and needs of consumers but also in the actuality of our food production and supply chains. The pandemic has reminded all of us how important it is to take care of our own and our families' health. Now is the perfect time for Nepra Foods to make big moves to expand our presence in the industry and I look forward to what the year will bring.