DN Delta 9 Cannabis Inc

DELTA 9 CANNABIS INC. (TSX:DN) (OTCQX:DLTNF) (“Delta 9” or the “Company”) is pleased to announce that it has completed the installation and implementation of its new fully-automated pre-roll manufacturing equipment at the Company’s Winnipeg, Manitoba facilities, significantly increasing the Company’s capacity to manufacture pre-rolled cannabis products. The Company is also pleased to announce that the pre-roll automation project has been funded in partnership with the Canadian Agricultural Partnership AG Action Manitoba program, through a Contribution Agreement for $175,000, or 25% of the overall project cost.

“The expansion in pre-roll manufacturing capacity marks a significant milestone for Delta 9. In 2022 we produced and sold over 1 million cannabis pre-rolls, generating over $2.3 million in revenue,” said John Arbuthnot, CEO of Delta 9. “We anticipate that the new automated pre-roll equipment will allow Delta 9 to produce up to four million pre-rolls per year with significantly lower manufacturing costs and improved contribution margins from the sale of pre-roll products. We want to thank the Government of Manitoba for their partnership in this investment through the AG Action Manitoba program.”

The Company plans to add multiple strain specific and innovative cannabis pre-roll products to its portfolio in 2023 and views the pre-roll segment as a key growth driver for the Company’s wholesale cannabis business.

The Canadian Agricultural Partnership is a bilateral agreement between the Government of Canada and the Government of Manitoba which oversees the AG Action Manitoba program (the “Program”). The Program funds investments in the Manitoba agriculture sector with a directive to enhance the diversification, competitiveness, and sustainability of the agriculture, agri-food, and agri-product sector by accelerating the pace of innovation in the Province of Manitoba.

For more information contact:

Investor & Media Contact:Ian Chadsey VP Corporate AffairsMobile: 204-898-7722E-mail: ian.chadsey@delta9.ca

About Delta 9 Cannabis Inc.Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9's shares trade on the Toronto Stock Exchange under the symbol "DN" and on the OTCQX under the symbol "DLTNF". For more information, please visit www.delta9.ca.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this news release include (i) statements relating to the Company’s plans to increase sales of cannabis pre-roll products, (ii) the Company’s plans to realize improved manufacturing costs and contribution margins and (iii) the Company’s plans to introduce new cannabis pre-roll products. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9 dated March 30, 2022 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.