Market Overview

Golden Leaf Holdings Ltd. Announces Q2 2016 and June 2016 Preliminary Results for Oregon and Washington State Brands


TORONTO, ON --(Marketwired - July 12, 2016) - Golden Leaf Holdings Ltd. ("GLH" or the "Company") (CSE: GLH), a leading cannabis oil solutions company built around recognized brands, today announced preliminary revenue results for Q2 2016 and June 2016 for the respective brands of the Company in Oregon and strategic partner BMF Washington ("BMF").

GLH Oregon Revenue Overview

Preliminary results show that GLH generated US$3,011,000 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$2,476,688 for Q1 2016, representing a quarter over quarter increase of 21.5%.

The Company posted preliminary results for June 2016 showing UD$923,000 in estimated and unaudited revenue as compared to US$1,067,000 (updated and revised from previously published number) in May 2016, representing a month over month decrease of 13.5%. GLH sold all of the products that it produced in the month of June.

GLH experienced lower than anticipated revenue in June 2016 due to a variety of unexpected challenges. The Company is developing plans to address these variables as shown below:

Issue Proactive Response
Production obstacles, including cash GLH is leveraging cash from current
constraints that impacted trim and convertible debenture funding to
flower purchases, trim quality issues fulfill raw material requirements. The
and product testing delays from 3rd Company has developed a strategic trim
party vendors made it more supply agreement program focused on
challenging to source material inputs contracting with selected farmers to
and produce product in a timely obtain low cost supply of high quality
manner. flower and trim with specific strain
and genetic characteristics. GLH
purchased new testing equipment to
ensure the quality of trim and
efficiency of testing timelines. The
Company is building relationships with
testing vendors to effectively manage
testing bottlenecks.
The Oregon cannabis market saw slower The concept of using a vape pen for
than expected recreational consumer delivery and usage of marijuana is
adoption of oils and extracts. still relatively new for the average
recreational user. The Company is
working with dispensaries to provide
merchandising tools that educate the
consumer on the benefits of cannabis
oil and new delivery systems.

The retail buying process at medical Dispensaries are becoming more
marijuana dispensaries, including familiar with customers buying
effective purchasing and supply chain behavior, but room for improvement
management is still evolving. Not all exists with raising the level of
dispensaries stocked the appropriate sophistication as it relates to
inventory to meet new recreational inventory management and regular
consumer demand. purchasing patterns. GLH is working
closely with dispensary customers to
help manage stock levels and ordering


Don Robinson, Chief Executive Officer of GLH, commented, "While June 2016 Oregon sales results were lower than expected, we were encouraged by the strong sell through of all available inventory produced. We were also pleased with the positive consumer response to the relaunch of the Golden brand and the new product launch of Private Stash. Our sales and marketing team worked with dispensaries across the state to not only introduce new products but new merchandising tools that elevated the consumers' shopping experience and increased brand awareness."

BMF Washington Revenue Overview

Preliminary results show that BMF generated US$1,370,445 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$904,359 for Q1 2016, representing a quarter over quarter increase of 51.5%. BMF's June 2016 unaudited and estimated revenue in Washington state was US$537,880, a month over month increase of 13% from May 2016 of US$475,457.

About Golden Leaf Holdings:
Golden Leaf Holdings Ltd. is one of the largest cannabis oil and solution providers in North America. It's a leading cannabis products company in Oregon built around recognized brands. GLH leverages a strong management team with cannabis and food industry experience to complement its expertise in extracting, refining and selling cannabis oil.

Disclaimer: This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Company's future business operation, expectations of gross sales, the opinions or beliefs of management, and future business goals. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to general business, economic and competitive uncertainties, regulatory risks including risks related to the expected timing of the Company's participation in the Adult Use market, market risks, risks inherent in manufacturing operations and other risks of the cannabis industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is provided herein for the purpose of presenting information about management's current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


For further information, please contact:
Golden Leaf Holdings Ltd. Investor Relations:
Paul Searle
Investor Relations, Golden Leaf Holdings Ltd.
T: 778.240.7724

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