PEAK PROCESSING LIMITED — Capital/Financing Update 2020

Nov 15, 2020

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ASX Announcement | 16 November 2020 Althea Group Holdings (ASX:AGH)

Peak lifts expected revenue with the addition of two new agreements

Current contracts represent forecasted revenue up to CAD$4.65M over the next 12 months

Investment Highlights:

• Peak has entered into a License Agreement with Canadian-based, Earth Kisses Sky, to produce two customer branded topical products, with 150,000 units (75,000 of each) expected to be purchased in year one

• Peak has also signed a Manufacturing and Distribution Services Agreement with Canadian cannabis beverage start-up, Electric Brands, to produce two canned beverage SKUs with an initial order of 50,000 units anticipated

• Electric Brands was founded by ex-Coca Cola Canada and Canopy Growth executives

• Peak has now signed contracts with a total forecasted revenue of up to CAD$4.65m over the next 12 months

16 November 2020: Australian pharmaceutical company Althea Group Holdings Limited (ASX:AGH) (‘Althea’ or ‘the Company’) is pleased to announce that its wholly-owned Canadian based subsidiary Peak Processing Solutions (“ Peak ”), has recently entered into a License Agreement with Canadian-based Earth Kisses Sky and a Manufacturing and Distribution Services Agreement with Canadian cannabis beverage start-up, Electric Brands.

Peak has now signed contracts with a total forecasted revenue of up to CAD$4.65m over the next 12 months and maintains a strong sales pipeline heading into 2021. Peak only recently obtained its Standard Processing Licence from Health Canada, in mid-September 2020.

Earth Kisses Sky

Peak has entered into a License Agreement with Canadian-based Earth Sky Kisses (‘EKS’) for the manufacture of two topical products - with an order of 150,000 units (75,000 of each) expected to be purchased in year one. Production is expected to commence immediately.

Electric Brands Inc.

Peak has also signed a Manufacturing and Distribution Services Agreement with Canadian cannabis high growth start-up, Electric Brands Inc., a company founded by ex-Coca Cola Canada and Canopy Growth executives. Electric Brands aims to develop global, iconic cannabis infused beverages for the burgeoning Canadian adult use cannabis market.

Althea CEO, Joshua Fegan, commented on the Peak update: “Since Peak received its Standard Processing Licence from Health Canada a couple of months ago, we have been busy ramping up commercial operations at the facility, and are in the process of expediting the product launch dates

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for both new and existing customers. Peak has received an influx of enquiries for its industry leading Cannabis 2.0 product development, manufacturing, and distribution services, and has already signed contracts representing forecasted revenue of up to CAD$4.65m over the next 12 months. Peak remains uniquely positioned to cater for the big consumer brands seeking to enter the recreational cannabis market and I look forward to updating the market on further agreements shortly.”

-ENDS-

Authorised by: Robert Meissner, Company Secretary

For further information, please contact:

Althea Media Enquiries Investor Relations Josh Fegan Dan Francome Jane Morgan CEO & Managing Director Media Relations Investor Relations Partner M: 1300 70 20 20 P: +613 9650 5096 M: +61 405 555 618 E: contact@althea.life E: dfrancome@althea.life E: jm@janemorganmanagement.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 Germany, emerging markets throughout Asia and other parts of Europe.

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

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