Golden Leaf Reports First Quarter 2017 Results, Shareholder Update Call, and New Board Slate for Annual General Meeting - Seite 3

Gary Zipfel

Mr. Zipfel served as capital partner and board level advisor for start-up stage companies, providing business planning, strategic direction, and scenario analysis. Mr. Zipfel worked with companies from a diverse array of industries including cannabis, vertical green space appliances, mountain home design and construction, commercial real estate, bicycle parts design and manufacturing, digital advertising, jet engine repair, healthcare notification systems, restaurants, and breweries.

Overview of Q1 2017 Results in Oregon: Revenues Flat vs. Q1 2017, Up Significantly vs. Q4 2016, Cost Cutting Reduces Adjusted EBITDA Loss

The Company generated revenues of $2,259,094 for the three months ended March 31, 2017, a slight decrease compared to $2,316,688 for the three months ended March 31, 2016, but a significant increase compared to $434,967 for the three months ended December 31, 2016. In Q1 2017 the revenues increased by over 400% versus Q4 2016.

On an Adjusted EBITDA basis, GLH reported a reduced EBITDA loss of $(1,854,565) for the three months ended March 31, 2017 compared to an EBITDA loss of $(2,346,339) for the three months ended March 31, 2016 and an EBITDA loss of $(2,074,566) for the three months ended December 31, 2016. This EBITDA loss improvement and positive trend is a result of the Company's focus on continued cost-cutting and efficiency gains. In addition, GLH expects to recognize margin improvements once the Company begins manufacturing its own oils and edible products in its new Eugene, Oregon production facility.

Adjusted EBITDA is a non‐GAAP financial measures and does not have any standardized meaning prescribed by the Company's GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. See "Non‐GAAP Disclosures" below for additional information and the attached chart "GLH Q1 2017 Adjusted EBITDA Financials" for additional information.

Don Robinson, CEO of GLH commented, "Although revenue in Oregon for our first quarter of 2017 was flat year-over-year, we did show a significant increase in revenue growth as compared to the fourth quarter of 2016, and the Company remains optimistic for future quarters when it will be able to expand its wholesale product mix to include value priced cartridges, dabbable oils, edibles, and a wider variety of flower options. The new licensing and product line additions we launched in the beginning of 2017 have begun to bear fruit, and we are seeing this growth within both the Oregon and Washington state markets. We expect to launch the GLH Oregon brands in Washington and the BMF Washington brands in Oregon later in 2017. In addition, the Company plans to launch its portfolio of brands in Nevada upon completion of the NevWa, LCC acquisition. Moreover, we have made great strides executing on the strategic acquisition program we announced in early January that we believe will drive financial and shareholder value for our Company and our stakeholders."