PEAK PROCESSING LIMITED — Capital/Financing Update 2018

Oct 9, 2018

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FOR IMMEDIATE RELEASE

• Althea signs distribution agreement with major independent cannabis distributor, Health House International

• The agreement enhances Althea’s national sales footprint and extends coverage to include Western Australia

Melbourne, Australia, 10 October 2018: Althea Group Holdings Limited (“Althea”) ( ASX:AGH ) today announces that, through its wholly owned subsidiary Althea Company Pty Ltd, a distribution agreement has been signed with renowned medicinal cannabis wholesale & distribution business, Health House International Pty Ltd (“Health House”).

Under the agreement, Health House will purchase in bulk, warehouse and distribute five Althea branded medicinal cannabis products to their existing network of pharmacies, whilst supporting healthcare professionals with Althea product information.

Health House International are one of the major wholesalers to Australian pharmacies for medicinal cannabis. In May 2017 they imported one of the first legal international medicinal cannabis shipments into Australia.

Althea CEO Joshua Fegan said: “Paul and his team at Health House International are pioneers of medicinal cannabis wholesaling in Australia. Apart from being one of the first importers of finished products, Paul is very passionate about medicinal cannabis and is a strong voice in supporting patient access.”

Pharmacist, CEO and founder Paul Mavor said “We are really proud to be working with a quality company like Althea. They have world class pharmaceutical-grade medical products to add to our existing range. In addition to four Althea cannabis oils, we will now have access for the first time to a dried flower product which some patients prefer.”

Althea currently engages medical science liaisons in New South Wales, Victoria, Queensland and South Australia. Mr Fegan added “Health House’s reputation within the medical community, particularly in Western Australia, was a big part of our decision to partner with them. WA to date has been an elusive market for us compared to the eastern seaboard, where our own distribution network continues to grow and flourish.”

“We believe the deal with Health House aligns well with our Althea Concierge medical education program and will help the brand become a leading choice for practitioners in WA, as it is fast becoming in other territories.”

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

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-ENDS-

About Althea

Althea was founded in Melbourne in 2017 with a view to acquiring the necessary licences and permits to import, cultivate, produce and supply medicinal cannabis for eligible patients across Australia. Through strategic supply and distribution partnerships, Althea has been able to commence sales 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.

About Health House

Health House International was the first medical cannabis importer into Australia and currently wholesales to pharmacists and researchers around the country. They have a team of pharmacists that can counsel prescribers on strengths, dosage, side effects and interactions. They offer a next business day delivery service for their range of medical cannabis products for authorised patients.

Althea:

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

Investors:

PAC Partners Securities

03 8633 9834 | enquiries@pacpartners.com.au

Media contacts:

Sophie Mayes, Keep Left on behalf of Althea 03 9268 7800 | sophie@keepleft.com.au

Georgia Harrison, Keep Left on behalf of Althea 03 9268 7800 | georgia@keepleft.com.au