March 2020 Project Summary Project Summary

March 2020 Project Summary

Project SummaryMARCH 2020

Private & Confidential 1


ABOUT BOTANAPHARM

• Botanapharm Pty Limited (ACN 629 565 902) is a registered private Australian company.

• Envisioned to become a global leader in the emerging global cannabis market.

• Botanapharm is currently pursuing opportunities to grow cannabis in Lesotho, Zimbabwe, South Africa and Malta.

• All four countries have recently legalised the farming of cannabis for medicinal use.



Botanapharm is looking to simultaneously list on the National Stock Exchange of Australia (NSX) and Deutsche Bourse.

Botanapharm is looking to raise $500,000 in seed capital at $0.05 per share, ahead of a $2 million prospectus capital raising.

The resulting capital will be used to fund establishment and expansion of Botanapharm’s proposed cannabis growing operations.

Proposed Capital Share of Botanapharm

Share Type Shares Capital (A$) %

Shares currently on issue 110,000,000 - 78.6

Seed raising (A$0.05) 10,000,000 500,000 7.1

Prospectus raising NSX (A$0.10) 20,000,000 2,000,000 14.3

Costs of Listing -300,000

Total 140,000,000 2,200,000 100.0

Market capitalisation at A$0.10 per share 14,000,000

CAPITAL STRUCTURE



Legal for any use

Legal as authorised by a physician

CANNABIS MARKET

Cannabis is an extremely high-value crop that commands premium prices.

The size of the Canadian market for medical cannabis is estimated at US$1.3 billion while the size of the global market is over US$180 billion.

Under the offtake agreement Botanapharm has signed, it will sell dried cannabis bud and sugar leaf at premium international prices.



In 2018 in Lesotho, Botanapharm has signed a Joint Venture Agreement with Kana Health (Pty) Ltd. a company incorporated in Lesotho to grow cannabis.

PROJECTS

2018 2020


2019In 2019 in Zimbabwe, Botanapharm inked a Joint venture agreement with Carolina Wilderness for a Chikurubi in conjunction with the Ministry of Health.

In 2020 in South Africa, Botanapharm signed a Joint Venture Agreement with MEDIDOPE Pharmaceuticals to grow medical cannabis in Gauteng.Also in 2020 in Lesotho, Botanapharm signed a Joint Venture Agreement Tau Tsehla Medical Cannabis Development to grow medical cannabis in their Mafeteng SEZ.

2020

Carolina Wilderness granted 10 year licence by the Ministry of Health Zimbabwe. Also begin applications to grow HEMP commercially.

MediDope South Africa and Botanapharm South Africa identify suitable land for crop and start applications with the Authorities.

Kana Health was granted a 10-year licence by the Lesotho Ministry of Health to cultivate, manufacture, supply, hold, import, export and transit cannabis products.

Tau Tsehla recieve FULL Parliamentary Approval to begin operation of the Special Economic Zone in Mafeteng in Lesotho.


In addition to Lesotho, Botanapharm is in the processes of securing other project sites in Africa, as summarised below.

Project Country License Agreements Crop Area (ha)

Profitshare Comments

Kana Health Lesotho Granted JVA signed. Medical cannabis 5 80:20

First crop of 0.5 ha to be planted by early October 2020 under shade netting. Another

20 ha available.

Chikurubi with MOH Zimbabwe Granted

JVA signed with Ministry of Health. Shareholder agreement about to be issued. DLA Piper to

finalise agreement.

Medical cannabis 20 60:40 Land allocated by Government in suburbs of

Harare.

CarolinaWilderness Zimbabwe Feb 2020 JVA signed. Industrial

hemp 30 60:40 3,000 ha farm with tobacco crop and game reserve.

Weird Leaf Cannabis at Goromonzi Zimbabwe Granted NDA signed. Heads of agreement to be signed

Jan 2020.Medical cannabis 20 60:40

Farm currently used to grow tobacco. Owned by investment banker, who can provide

capital. Three farms available.

Tau Tsehla Medical Cannabis Development Lesotho Granted MOU signed. JVA signed Jan 2020 Medical

cannabis 10 70:30Land in Special Economic Zone with major tax concessions. First Economic Zone in Lesotho.

10,000 ha available.

MedidopePharmaceuticals South Africa Mar 2020 JVA signed. Medical

cannabis 5.5 70:30 Close to Johannesburg. Another20 ha available

A summary of Botanapharm’s African projects

PROJECTS



LOCATION ADVANTAGES

1Legislative support for establishing a medical

cannabis industry.

2Availability of skilled

& low-cost farm workers

3Availability of basic

cultivation infrastructure

4Lower cost due to

favourbale subtropical climates for growing cannabis outdoors



PRODUCTION & DISTRIBUTION STRATEGY

Cultivation Drying & Processing Distribution

04

Seeds & Cuttings

01

• Grow a range of cannabis cultivars including those suitable for medical applications, matched to local growing conditions and the fast growing.

• Establish nurseries to grow cannabis plants to produce seed.

• Progressively plant out at least 10 hectares and harvest in Q1 2021.

02 02

• Greenhouses, polytunnelsand hoop shade netting will be used with drip irrigation to feed and water plants.

• Botanapharm plans to plant 5,000 m2 of irrigated crop under shade netting by mid-December 2019 in Lesotho. This has been costed at about A$260,000.

• Harvested material will be dried in drying rooms to allow for uniform drying and prevent any mouldgrowth.

• Oil and resin can be extracted using processes such as supercritical fluid extraction.

• Botanapharm has signed an agreement with CannoilEurope Ltd, a German-based wholesaler, distributor and importer of medical products for the European market.

• Botanapharm may also supply medicinal cannabis products to meet demand in Lesotho and South Africa.



Master Plan Tau-Tsehla Medical Cannabis Development Lesotho

Future Expansion West

Future Expansion A

Future Expansion North

Bophelo North

Industrial Ship & Distribution

Bophelo South

Future Expansion East

Future Expansion B

To Mafeteng

To MaseruTo Tsa Kholo



Master Plan Tau-Tsehla Medical Cannabis Development Lesotho

Sport Complex

Student Accommodation

University

Retail Strip

Transport Center & Office

Staff Housing

Laboratory & Office

Training Center

Medical CentrePrivate & Confidential 10


Shown in next figure is two-year cashflow projections for operations beginning with 0.25 hectares of crop under shade netting, followed by 0.75 ha of C. ruderalis crop and 1 ha of main crop in 2021, and another 5 hectares of main crop in 2021.

REVENUE MODEL

US$2000per kg

US$10mil.per ha

$ $


0.25haShade netting

in 2020

0.75haC.Ruderalis

Crop

1haMain Crop in

2021

5haMain Crop in

2021

2020 2021

2020 2021Q2 Q3 Q4 Q1 Q2 Q3 Q4

IncomeSeed capital 500,000Share capital 35,000Funds from public company listing 1,500,000Sale of raw cannabis

Crop 1 (0.25 ha under shade netting) 5,000,000 5,000,000 5,000,000Crop 2 (0.75 ha of Ruderalis ) 15,000,000 15,000,000Crop 3 (1ha) 20,000,000Crop 4 (1 ha) 20,000,000Crop 5 (2 ha)

Total income 535,000 1,500,000 0 5,000,000 20,000,000 5,000,000 55,000,000

ExpensesPayment to JVA partners 1,000,000 4,000,000 1,000,000 11,000,000 Seed costs 10,000 40,000 40,000 80,000 - Pots 5,000 20,000 20,000 40,000 - Buildings 100,000 200,000 - - - Greenhouse costs(including irrigation) 37,500 112,500 - 300,000 - Installation of Greenhouse 10,000 15,000 - 50,000 - Borehole, pipe, tanks for water supply 6,500 - - - - Fencing 33,750 101,250 - 270,000 - Security Equipment inc Lighting and CCTV 35,000 - - - - Lighting for greenhouse 10,000 15,000 - 25,000 - Vehicles( Including tractor) 40,000 15,000 - - - Fuel for Vehicles and Generators 17,800 21,450 21,450 21,450 21,450 Irrigation Container and tanks 6,000 - - - - Workshop and Tooling 15,715 - - - - Licences to grow cannabis 25,000 0 50,000 - - - Labour costs 7,824 7,824 7,824 7,824 7,824 Telephone and Internet 3,600 3,600 3,600 3,600 3,600 Insurances 8,400 8,400 8,400 8,400 8,400 Food for workers 12,855 12,855 12,855 12,855 12,855 Security personnel 3,750 3,750 3,750 3,750 3,750 Management wage 10,000 15,000 15,000 15,000 15,000 Financial Manager 16,000 24,000 24,000 24,000 24,000 Brick Making equipment and Materials 14,285 - - - - Maintenance of vehicles and facility equipment 1,200 - - - - Biocontrol uniforms 3,500 - - - - Drying and packaging 0 5,000 - - - Shipping 0 6,500 - - - Travel 0 36,000 29,000 29,000 39,000 Total expenses 25,000 408,679 1,713,129 4,185,879 1,890,879 11,135,879

Cash flow 510,000 1,500,000 -408,679 3,286,871 15,814,121 3,109,121 43,864,121Opening balance 510,000 2,010,000 1,601,321 4,888,192 20,702,313 23,811,434Closing balance 510,000 2,010,000 1,601,321 4,888,192 20,702,313 23,811,434 67,675,555


CONTACTS

George Sim

Winning Corporate Services Pty Ltd

+61 418 658 833

[email protected]




DISCLAIMERAlthough reasonable care has been taken to ensure that the facts stated in this document are accurate and that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information containedin this document or on its completeness. No representation or warranty, express or implied, is given by either Botanapharm or by any of its directors, officers, employees, agents or advisers (as they may be) as to the accuracy of the informationor opinions contained in, or as to the completeness of this document. By accepting this document, the recipient agrees to keep permanently confidential the information contained herein or sent herewith or made available in connection withfurther enquiries. It is a condition of the issue of this document that it will not be reproduced. The statements contained in this document are both historical and forward looking in nature. The forward looking statements involve risks anduncertainties including those relating to permitting, production and costs.


THANK YOU..

March 2020 Project Summary Project Summary

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