Herbal Dispatch Provides Update on Gold Royalty Interest in Artemis Gold's Blackwater Mine

Herbal Dispatch Inc. (CSE: HERB) (OTCQB: LUFFF) (FSE: HA9) (" Herbal Dispatch " or the " Company "), a cannabis commerce and international distribution platform, today provided an update on a gold royalty interest held by the Company on mineral claims forming part of the Blackwater mine in central British Columbia.

Herbal Dispatch holds a royalty interest (the " Royalty ") applicable to eight (8) mineral claims located within the mineral tenure of the Blackwater mine project (the " Property "), located approximately 112 km southwest of Vanderhoof, BC. The Property is owned and operated by Artemis Gold Inc. (" Artemis Gold "), a Canadian gold producer listed on the TSX Venture Exchange. Blackwater is one of the largest new gold mines to reach commercial production in Canada in recent years, and Artemis Gold has publicly disclosed that it continues to actively advance expansion plans for the operation, including a mill throughput expansion intended to increase future gold and silver production. The Buck claims, Buck 1 through Buck 8, together cover approximately 3,755.5 hectares (approximately 9,280 acres), and form one contiguous block located immediately adjacent to (west of) the claims bordering the Blackwater Mine Area and Ultimate Pit. The Royalty entitles the Company to a 1.5% net smelter return (NSR) royalty on production, if any, from the Buck claims, in accordance with the terms of the underlying option agreement governing the interest (the " Buck Option "). Artemis Gold holds an option to purchase two-thirds of the Royalty for C$2,000,000 at any time, which, if exercised, would reduce the Company's interest to a 0.5% NSR on the Buck claims. The Company's interest is a passive royalty; Herbal Dispatch has no operating, funding, or exploration obligations with respect to the Property, and Artemis Gold is under no obligation to develop, mine, or continue operations on any specific claim.

The Royalty is a legacy interest that predates Herbal Dispatch's entry into the cannabis sector. The Company's corporate predecessor, Paget Minerals Corp. (" Paget "), was a British Columbia-based mineral exploration company that held mineral claims in the Blackwater district. Paget subsequently completed a reverse takeover transaction in 2018, which was later renamed Herbal Dispatch Inc. in January 2023. The Royalty was carried forward through these corporate transitions and remains held by the Company today as a non-core, legacy asset separate from Herbal Dispatch's core cannabis operations. Currently, this asset is recorded at a carrying value of $nil in the Company's financial statements.

Artemis Gold has continued to actively expand the Blackwater mine following the achievement of commercial production. Publicly disclosed initiatives include a Phase 2 mill expansion intended to increase processing throughput and annual gold production, together with continued exploration and resource definition work across the broader Blackwater land package. Continued development of the Property by Artemis Gold may enhance the long-term value of the Royalty.

The Royalty is not part of Herbal Dispatch's core cannabis commerce business, and the Company holds no operating interest in, and receives no current cash flow from the Property. The Company views the Royalty as a call option on Artemis Gold's continued de-risking and expansion of Blackwater, with the potential to appreciate in value as the mine ramps toward full production. At the same time, as Herbal Dispatch's business increasingly centres on scaling its core, asset-light cannabis commerce platform, the Board and management are undertaking a formal review of strategic alternatives with respect to the Royalty. These alternatives include, but are not limited to: (i) continuing to hold the Royalty f...