KALY Building CBD Brand As Top Quality Extract For Customers Like PURA With Potential To Grow $5 M Business Into $20 M

Kali Extracts

DALLAS, June 11, 2019 (GLOBE NEWSWIRE) — via OTC PR WIRE — Kali-Extracts,
Inc. (Kali, Inc. dba/Kali-Extracts, Inc.) (USOTC: KALY) (“KALY”) today
published a management overview on the company’s mobile cannabis extraction
capacity. KALY recently announced a contract with a New York State Licensed
Hemp Cultivation Operation anticipated to generate an estimated $5 million in
revenue for KALY. The extraction for the New York State Licensed Hemp
Cultivation Operator will be conducted via a proprietary mobile extraction
unit. With the extraction capacity being mobile, KALY management believes the
company could contract potentially more than $20 million in similar contracts.

Kali-Extracts Mobile Cannabis Extraction Capacity

Central to the company’s mobile cannabis extraction capacity strategy is the
fact that KALY owns and operates a U.S. Patented Cannabis Extraction Process.
KALY primarily utilizes its Patented Process discovering, developing and
commercializing novel therapeutics from a proprietary cannabinoid product
platform in a broad range of disease areas. Given that therapeutic product
development is a multi-year, multi-million endeavor, KALY has also employed
its Patented Process in two ancillary lines of business that can generate
revenue more immediately with less upfront investment. One, the company has
its own line of Cannabis Confections infused with CBD. Hemp4mula Gum from KALY
is now available, and Hemp4mula Gummies will also soon be available as the
first two CBD Infused Confections of a broader planned line. Second, and the
topic of this presentation, is KALY’s contract cannabis extraction business.

With the passage of the 2018 Farm Act and the corresponding legalization of
hemp farming, hemp cultivation initiatives are popping up everywhere driven
largely by the opportunity to produce hemp derived CBD. However, CBD
extraction is a separate discipline from hemp cultivation. And the marketing
of CBD is yet another separate discipline. So even if a cultivator can
successful harvest a hemp crop, the finish line is still a way off.

With a Patented Cannabis Extraction Process and years of extraction expertise,
KALY has a market leading extraction discipline. With years having already
participated in the CBD infusion of a leading CBD Water, KALY also has the
foundation of a recognized Brand for CBD extraction.

PURA – Puration, Inc. (USOTC: PURA) Branding Example

In the fourth quarter of last year, 2018, KALY acquired NCM Biotech (NCMB). In
NCMB’s four years of operations, NCMB has established a great deal of
extraction experience. NCMB and now KALY, among many other extraction
experiences, have been a long-term partner of Puration, Inc. (USOTC: PURA)
(“PURA”). PURA produces EVERx CBD Sports Water, the leading CBD infused water
within the sports nutrition market. PURA has over $1 million annual sales and
a $4 million revenue target for 2019. KALY can point to their success with
PURA to support a top-quality CBD extraction claim.

Hemp Crop Consignment Strategy

With a Brand for Top Quality CBD Extract, KALY has more to offer a hemp
cultivator than expert extraction. KALY can help a hemp cultivator market
their extract. KALY’s business model for extraction is not simply to extract
CBD, but to have hemp cultivation customers consign their crops to KALY for
KALY to extract and market the CBD under the KALY brand name.

Mobile Extraction Lab $20 Million Scalability

KALY has already signed its first hemp cultivation consignment contract. The
contract is estimated to be worth $5 million in revenue. With KALY deploying
its Patented Cannabis Extraction process within a mobile lab that can be
easily transported in a tractor trailer, KALY has the ability to sign hemp
cultivator clients nationwide. By signing only 2 to 3 more clients of similar
size of their first client, KALY could easily reach $20 million in revenue
from its new cannabis extraction business this year.

To learn more about the company visit https://www.kali-extracts.com/

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as such,
may involve risks and uncertainties. These forward looking statements relate
to, amongst other things, current expectation of the business environment in
which the company operates, potential future performance, projections of
future performance and the perceived opportunities in the market. The
company’s actual performance, results and achievements may differ materially
from the expressed or implied in such forward-looking statements as a result
of a wide range of factors.

CONTACT:
Frederick Ferri
ir@kali-extracts.com
(214) 210-0459

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