PEAK PROCESSING LIMITED — Capital/Financing Update 2019

Nov 14, 2019

ASX Announcement |15 November 2019 Althea Group Holdings (ASX:AGH)

Althea passes 3,000 patients in Australia and remains on track to reach 4,000 patients by 31 December 2019

INVESTMENT HIGHLIGHTS:

• Althea passes 3,000 patients in Australia with 486 new patients added in October
• The Company has a current year-over-year growth rate of more than 2,100%
• 375 HCPs have now prescribed Althea medicinal cannabis
• The Australian medicinal cannabis market increased at its highest rate in October, adding 3,594 TGA SAS Category B approvals 1

15 November 2019: Australian medicinal cannabis company Althea Group Holdings Limited (ASX:AGH) ('Althea' or 'the Company') is pleased to provide the following update with regards to the uptake of its medicinal cannabis products in Australia.

3,000 patient milestone passed

Althea welcomed 486 new patients in October, surpassing the previous record of 462 patients added in the month prior. A total of 2,815 patients had been prescribed Althea's medicinal cannabis products as of end-October, representing a 2,117% year-over-year increase on the 127 patients recorded at the end of October 2018.

There are now 375 Australian Healthcare Professionals ('HCPs') who have prescribed Althea's products. As a result of this sustained growth, Althea crossed the 3,000 patient milestone in November and 3,031 patients have been prescribed Althea's products to date.

The Company remains on track to reach 4,000 patients by 31 December 2019.

Chart 1: Patient Growth

1 https://www.tga.gov.au/access-medicinal-cannabis-products-1

Althea CEO Josh Fegan said: "It is hard to believe that just over a year ago Althea medicinal cannabis products had only been prescribed to 127 patients. We have seen phenomenal growth since then and are very pleased to have now passed the 3,000-patient milestone. We are replicating our Australian strategy in the UK and German markets and expect to see similar patient growth trajectories in due course."

Mr Fegan added: "Althea is in a market leading position due to our brand recognition and high value proposition which resonates with doctors and patients alike. The Company remains fully funded and on track to deliver Australian manufactured Althea products in 2020, as well as supporting our international expansion."

Chart 2: HCP Growth

Althea's strategy and new products to drive further growth

Althea's patient-focussed approach and emphasis on medical education, combined with its proprietary technology platform Althea Concierge, are all key factors in the continued strong patient uptake.

Althea's growth has been supported by the increase in Therapeutic Good Administration ('TGA') Special Access Scheme Category B ('SAS B') applications in Australia. The Australian medicinal cannabis market increased at its highest rate in October, adding 3,594 TGA SAS Category B approvals2.

In addition, the company expects sales of its recently announced, new highly concentrated full spectrum cannabidiol (CBD) product, to increase patient numbers in the short, medium and long term.

2 https://www.tga.gov.au/access-medicinal-cannabis-products-1

Chart 3: SAS B Growth

For further information, please contact:

Althea Josh Fegan CEO & Managing Director M: 1300 70 20 20 E: contact@althea.life

Media Enquiries

Julia Maguire The Capital Network M: +61 419 815 386 E: julia@thecapitalnetwork.com.au

Althea Group Holdings Limited (ASX:AGH)

Althea is an Australian licensed producer, supplier and exporter of pharmaceutical grade medicinal cannabis and is listed publicly on the Australian Securities Exchange (ASX:AGH). Althea also offers a range of products, education, access and management services to support eligible patients and healthcare professionals in navigating medicinal cannabis treatment pathways.

Althea currently operates within highly regulated medicinal cannabis markets including Australia and the United Kingdom, with plans to expand into emerging markets throughout Asia and Europe.

To learn more, please visit: www.althea.life