#1OK AND PICKED AnCaſſ SIGNED PREMIUM BC CRAFT lotus CANNABIS CO. Investor Presentation - Q3 2020 Ticker Symbols: CSE: J OTC: LTTSF FRA: LV9 LOTUS VENTURES INC.#2Disclaimer lotus CANNABIS CO. Notice The information contained within this document has been collected and prepared by Lotus Ventures Inc, the public entity which owns Lotus Cannabis Co, a premium cannabis brand in Canada. This edition of the presentation replaces any previous editions available. The market data included in this presentation has been collected from publicly available sources and has not been verified by a third party to be true or accurate. Investors should not use any third-party information collected by the Company as investment advice to buy or sell securities. Unless expressly stated otherwise, all financial information contained within this presentation is presented in Canadian dollars. Forward-Looking Statements This document includes certain statements that are not descriptions of historical facts but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for medical and recreational cannabis products, our expectations regarding the continued growth of the medical and recreational cannabis market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Users are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties have not been documented or mentioned in this document nor other communications made by the company. The words "believe," "expect," "anticipate," "project," "target," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law. 2#3Strategically Prepared for the Long Term Lotus created a differentiated way to consistently cultivate the highest quality cannabis at low production costs. lotus CANNABIS CO. Robust Facility Design Cultivation Expertise Proprietary Production Schedule 3#4Targeting a Leading Cannabis Segment Flower continues to hold the largest portion of market share in Canada. lotus CANNABIS CO. Projected Annual Cannabis Sales in Canada 2 Canadian Cannabis Sales by Segment 1 $5 $4 13% $4 $3 14% $3 $2 $2 73% $1.2 $1 $1 Dried Cannabis ■ Extract Cannabis ■ Edible Cannabis $0 2019 Source: Health Canada May 2020 Reporting Period 1, CIBC 2 $2.5 2020 (CAD) Billions $4.1 2021 4#5Targeting a Leading Cannabis Segment lotus CANNABIS CO. Total sales and grams sold by product categories April 1, 2020 - June 30, 2020 OCS.ca Retail Stores % of $ Sales Sales velocity by THC % April 1, 2020 - June 30, 2020 Dried Flower Vapes Pre-Rolls Oils Edibles Capsules Concentrates $24,100,000 3,800,000 g $6,240,000 260,000 g $2,320,000 170,000 g $3,700,000 370,000 g $2,150,000 330,000 g $1,470,000 74,900 g $873,000 160,000 g $51,300,000 6,000,000 g 61.0% 200 OCS.ca Retail Stores $11,800,000 420,000 g $8,920,000 740,000 g $3,200,000 300,000 g 14.5% 9.1% 5.6% $3,160,000 390,000 g 4.3% $1,470,000 2.4% 63,500 g Sales Velocity Multiple (2-6.99% = 1.0) 50 161x 150 101x 100 90x 55x 50 $960,000 1.5% 150,000 g Beverages $698,000 400,000 g $820,000 1.2% 340,000 g Seeds $175,000 14,800 g $70,000 0.2% 28x 17x 11x 9x 5x 4x 1x 1x >20% 17%- 20% 12% - 16.99% 7% 11.99% 2% 0% - 6.99% 1.99% THC % 5,500 g Topicals $120,000 3,900 g $160,000 4,800 g 0.2% Sales velocity references units per day for OCS.ca and units per day per average store for retail. Note: Average prices are weighted by sales and include taxes. Sub-category sales do not add to total sales due to rounding. Dried flower equivalency (DFE) conversion can be found here. Source: Ontario Cannabis Store - A Quarterly Review 5#6Analyzing Maturing Market Trends Flower also continues to hold the largest portion of market share in these maturing American states. lotus CANNABIS CO. - Arizona Dollar Share by Category - Colorado Dollar Share by Category Nevada Dollar Share by Category Oregon - Dollar Share by Category 1.0% 0.1% 0.4% 0.9% 0.0% 1.4% 2.3% 11.7% 0.5% 10.5% 48.7% 35.7% 14.8% 48.3% 28.9% 23.4% 51.8% 13.4% 48.0% 26.3% 3.6% ■ Flower 5.6% ■ Pre-Rolled ■ Flower Ingestibles ■ Pre-Rolled ■Ingestibles ■Concentrates Other Cannabis All Accessories Concentrates Other Cannabis All Accessories ■Flower 10.8% ■Concentrates ■ Pre-Rolled Ingestibles Other Cannabis All Accessories 8.7% ■Flower ■ Pre-Rolled ■Concentrates ■Ingestibles Other Cannabis All Accessories Source: New Cannabis Ventures, August 5, 2020, BDS Analytics 6#7Purpose-Built for Consistent Quality Total Facility Phase 1 2 Status 2 lotus CANNABIS CO. Facility Size (sq. ft.) Annual Production Capacity (KG) Operational 22,500 Pre-construction (up to) 30,000 2,000 (up to) 4,000 52,500 6,000 7#8Wholesale and Distribution lotus CANNABIS CO. Current Supply Commitment Offtake agreement with Auxly Cannabis Group. Map Legend = Established a wholesale relationship == = Product being sold by wholesale partners 2 Flagship facility: North Okanagan, British Columbia 1 BC Alberta Manitoba Saskatchewan Ontario Quebec 1. 50% of production is sold to Auxly at a fixed price. Lotus' second half of production is sold to a third party if Auxly does not exercise its right of first offer. 2. Lotus currently wholesales B2B to other licensed producers across Canada. Newfoundland & Labrador P.E.I New Brunswick Nova Scotia 00 8#9Quarterly Financial Performance lotus CANNABIS CO. Revenue Net Income $2,000,000 $2,000,000 $1,775,878 $1,500,000 $1,500,000 $1,071,252 $1,231,779 $1,000,000 839,554 $1,000,000 $500,000 $500,000 TBA $0 $0 TBA $0 -$500,000 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2020 -335,888.00 Q2 2020 Q3 2020 Q4 2020 ■Dollars ■Dollars Note: The company did not start recording revenue until Q2, 2020. The positive net income in Q1 was due to an unrealized gain in the fair value change of biological assets. 9#10Quarterly Financial Performance (continued) $2,000,000 $1,500,000 Gross Margin $968,799 $1,000,000 741,904 $500,000 TBA $0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 ■Dollars Gross Margin Percentage 100% 94% 79% 80% 55% 60% 40% 20% 0% 6% 0% 0% Q1 2020 Q2 2020 Q3 2020 lotus CANNABIS CO. -Gross Margin (Before Fair Value Adjustments) -Gross Margin (After FV Adjustments) TBA Q4 2020 10#11Quarterly Financial Performance (continued) Production Cost Per Gram Operating Expenses $750,000 $470,446 $500,000 $439,870 $402,731 $5 $1,000,000 $4 $3 $2 $1.60 $1.20 $250,000 $1 $0.00 TBA $0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Cost Per Gram lotus CANNABIS CO. TBA $0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 ■Dollars 11#12Third Quarter Summary and Stock Information Financial/Operating Results Revenue Gross Margin (before fair value changes) Gross Margin (after fair value changes) Gross Margin % Cost Per Gram Net Income Average Harvest Size (grams) Wholesale Selling Price Per Gram Production THC% Harvest Yield Per Plant (grams) 3 mo end May 31, 2020 $1,775,878 Exchange CSE $968,799 OTC $1,671,649 FRA 55% $1.60 $1,231,799 60,000 70,000 $3.00 - $5.00 20%-27% 80-115 Share Structure Outstanding Shares Fully Diluted lotus CANNABIS CO. Stock Symbol J LTTSF LV9 89.9M 140.5M 12 12#13Management Team lotus CANNABIS CO. Dale McClanaghan President, CEO Dale is a businessperson who has been at the helm of 7 different companies. Currently, Mr. McClanaghan occupies the position of President, CEO & Non- Independent Director at Lotus Ventures, Inc., President at McClanaghan & Associates Consulting Ltd., Chairman at Granville Island Trust, and President, CEO, Secretary & Director at BCM Resources Corp. In the past Mr. McClanaghan occupied the position of Chairman for Vancouver City Planning Commission, President & Chief Executive Officer of Petaquilla Minerals Ltd. and President & Chief Executive Officer for Vancity Enterprises Ltd. Carl Correia COO 15 Carl's invaluable experience includes over years in medical marijuana environmental design, control implementation, and cultivation. He holds a certification in Quality Assurance for Medical Marijuana, Good Production Practices, and Security for Operating Commercial Medical Marijuana Facilities. Carl has held multiple designated grower for medical patients' licenses and has over 16 years of experience in electrical contracting and installation. His experience has resulted in the meticulously detailed facility design, developed with the help of a talented team of engineers and industry experts. Jason Brown Head Grower Jason has spent most of his adult life pursuing perfection in the cultivation of cannabis. As a long-time licensed cultivator, Jason has refined his skills to enable him to expertly coax the best attributes out of the plant for the adult use recreational market. Jason is known for his ability to source rare genetics in the local cannabis community and develop his own blockbuster phenotypes from new and old seed stock. Tracy Edwards Quality Assurance (QA) Manager Tracy holds a Biological Sciences Technology Diploma from Northern Alberta Institute of Technology with a concentration in laboratory and research. She has 22 years of quality assurance experience in the Food & Beverage industry, which is particularly well-suited to our operation and facility, given that the quality assurance issues that are applicable to the brewing industry have many similarities with the QA issues in the cannabis industry. Tracy has worked with Lotus throughout the Health Canada licensing application process and the build of the facility to ensure compliance with the GPP (Good Production Practices) portion of the Cannabis Regulations. Jarrod Stinn Quality Assurance Assistant Jarrod double majored in Chemistry and Biology and leverages his extensive scientific knowledge in multiple divisions at Lotus, including QA, genetic selection and breeding. 13#14Board of Directors Dale McClanaghan Director Carl Correia Director Same as above. Same as above. lotus CANNABIS CO. Simon Davie Independent Director Simon Davie is a certified Project Management Professional with expertise in social purpose real estate. He currently serves as the COO and Managing Partner for the Terra Group of Companies, with over $600 Million in assets under development. Jeff Tung Independent Director Jeff sits on Lotus' Board of Directors and brings significant senior leadership and finance expertise from the Auxly team, with previous experience personally managing over $3 billion USD in business transactions and investments. 14#15Investment Highlights lotus CANNABIS CO. Financial . . • • Strong sales growth recording $1.77M in the Third Quarter. An increase of 65% from the previous quarter. Third Quarter gross margin of (55% before fair value changes). Low cost of production contributing to a positive $1.23M in Third Quarter net income. Total asset value of $17.24M, including facility, property and equipment. Received $5M investment from Auxly Cannabis Group. (TSXV: XLY) Operational The facility is operating on a continuous production cycle harvesting 60,000 - 70,000 grams of premium cannabis every two weeks. 200+ unique and new-to-market strains held in seed library. 20%+ THC and up to 3% terpene content. Lotus flower production is being sold in 8 provinces across Canada by multiple wholesale partners. Lotus is prepared for the long term with its low cost of production, high quality product, and its proprietary production schedule. 15#16AND PICKED AnCaſſ OK SIGNED PREMIUM BC CRAFT lotus CANNABIS CO. Contact Investor Relations (604) 842 4625 [email protected] Ticker Symbols: CSE: J OTC: LTTSF FRA: LV9 LOTUS VENTURES INC.