PEAK PROCESSING LIMITED — Capital/Financing Update 2018

Dec 19, 2018

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FOR IMMEDIATE RELEASE

Althea receives its largest shipment of Medicinal Cannabis Inventory

• Althea has received its largest medicinal cannabis shipment to date from its major Canadian supplier, Aphria Inc.

• Althea’s inventory will satisfy its growth of product sales up until the end of April 2019

• Planning is underway to secure an additional 12 months of future inventory, including 2 new products, which will supply Althea’s rapidly growing patient base in Australia until production of its own products commences in early 2020

• Althea has now achieved the 250 patient milestone with 75 registered Healthcare Professionals prescribing Althea medicinal cannabis

Australia, 20 December 2018: Australian medicinal cannabis company Althea Group Holdings Limited (“Althea”) (ASX:AGH) today announced it has received its largest medicinal cannabis shipment to date from major Canadian supplier, Aphria Inc. (TSX:APHA).

The shipment includes all of the five products that Althea currently distributes to patients in Australia. Based on internal sales growth projections, Althea’s medicinal cannabis product inventory will fulfil its growing patient base until the end of April 2019.

The current rate of sales growth means that Althea is constantly monitoring inventory and increasing forward estimates. Althea has the ability to place further orders for its products at any time and continue to increase its required inventory to appropriate levels based on sales growth.

Planning is underway to secure an additional 12 months of future inventory for supply to patients until Althea’s own production commences in early 2020. Althea expects this shipment to arrive in March / April 2019 and will feature two new products, including soft gel capsules and a 15ml oromucosal (mouth and nose) spray.

Althea continues to generate strong growth in prescriber and patient numbers, with 75 registered Healthcare Professionals actively prescribing Althea medicinal cannabis products to 250 patients.

Based on Canadian patient numbers as a percentage of their overall population, up to 250,000 Australian patients could ultimately utilise medicinal cannabis. “Althea is at the forefront of patient access in Australia and considering the increase in demand for Althea medicinal cannabis over the last two months, we now expect to reach our 1,000 patient milestone earlier than previously stated.” said Althea CEO, Joshua Fegan. “It wasn’t too long ago we were seeing one patient prescribed Althea medicinal cannabis every week. Now we are averaging 3 patients per day; and very soon that number will look more like 4, 5 or 6 per day.”

-ENDS-

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About Althea

Althea is a patient-focussed medical cannabis company. Althea has become a leading supplier of medical cannabis products in Australia since it was founded in Melbourne in 2017 and was granted necessary licences and permits to import, cultivate, produce and supply medicinal cannabis for eligible patients in Australia in 2018. Through strategic supply and distribution partnerships, Althea has become a significant supplier of five Althea branded medicinal cannabis products in Australia.

Althea’s focus on patient care underpins its business strategy and its innovative web-based platform and mobile application, known as Althea Concierge, is designed to educate and support patient access to medicinal cannabis in Australia. Althea has also engaged a team of medical science liaisons to assist medical practitioners to become prescribers, and pharmacists to become suppliers, of Althea products.

For more information about Althea visit www.althea.com.au

Althea:

Josh Fegan, CEO & Managing Director 1300 70 20 20 | contact@althea.com.au

Australian Investors:

PAC Partners Securities

03 8633 9834 | enquiries@pacpartners.com.au

Media contacts:

Australia

Mandy Caplan, Keep Left on behalf of Althea 03 9268 7800 | mandy@keepleft.com.au

Georgia Harrison, Keep Left on behalf of Althea

03 9268 7800 | georgia@keepleft.com.au