Little Green Pharma : Quarterly Activities Report & Appendix 4C

ASX ANNOUNCEMENT

JUNE 2022

onlyQUARTERLY ACTIVITIES REPORT

AND APPENDIX 4C

useCompany achieves record Quarterly revenue of $4.3 million and cash receipts of $3.7 million

personalEuropean developments highlight success of Company's EU strategy

Highlights:

• Strong growth in EU sales pipeline with new supply agreements with Four 20 Pharma and Ilios Sante and ramp up of deliveries to Demecan in Germany

• Aggregated potential value of LGP's German distribution strategy of $35m over 3 years

• UK market traction with key Sana Life Sciences supply agreement

• Encouraging legislative developments in Germany, France and Spain expected to underpin next phase of European expansion

• Appointment of highly regarded former Director of Public and Regulatory Affairs at Bayer Spain, Ms. Beatriz Vicen Banzo, as independent non-executive director

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Growth of 109% for revenue (unaudited); over 50% for new patients; and over 70% for new prescribers compared to the previous 12 months

Group right-sizing strategy implemented with 30% reduction in operating costs from previous quarter

Significant progress in construction of psilocybin cultivation facility, development of trial protocol, and launch of new Reset Mind Sciences website

Deferral of CAD 3.6 million of Canopy loan to 31 December 2022 Cash in bank of $17.6 million at end of Quarter

Little Green Pharma Ltd (ASX: LGP, "LGP" or the "Company") is pleased to provide its quarterly activities report and Appendix 4C for the period ending June 2022.

Revenue and cash receipts

During the Quarter, the Company generated revenue onlyof ~$4.3 million (unaudited) and cash receipts of ~$3.7

million, resulting in total revenue for the 12-month period ending 30 June 2022 of $14.6 million (unaudited). These revenue and cash receipts represent increases of 48% and 23% respectively from the March quarter and a 109% increase in revenue compared to the prior year.

The Company also started to see the results of its rightsizing initiatives with a 30% reduction in

useoperating costs from the previous quarter, down from $11.0 million to $7.5 million, notwithstanding further increases in power prices in Denmark over this period. The Company continues to implement its right sizing program with further cost reductions expected into the current quarter.

personalFor

Appointment of new independent non-executive director

On 7 July 2022 the Company appointed Ms. Beatriz Vicen Banzo as an independent non-executive director of the Company: see ASX announcement dated 7 July 2022. Based in Barcelona, Ms. Vicen is a Former Director of Public and Regulatory Affairs, Quality Assurance, Market Access & Patient Advocacy at Bayer in Spain and a highly regarded and experienced international pharmaceutical regulatory executive. With her substantial Spanish and EU regulatory experience, Ms. Vicen's appointment to the Company Board and Audit & Risk Committee helps contribute significant additional pharmaceutical expertise at Board level and ensures LGP is fully compliant with all ASX Corporate Governance Principles and Recommendations (4th Edition). The appointment positions LGP well to respond to, and capitalise on, recent market developments in Spain: see European market developments below for further details.

Little Green Pharma Quarterly Activities Report and Appendix 4C

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onlyOperations update

LGP has supplied or has existing investments i , or arrangements with, key partners for supply into 10 jurisdictions, being Australia, Germany, Italy, France, the UK, Denmark, Spain, Portugal, Belgium and Poland. This gives LGP access to 76% of EU and UK citizens.

useDuring the Quarter, the Company generated $4.3 million in revenue (unaudited) with $0.75 million relating to product sold in Europe and $3.55 million relating to product sold in Australia.

personalAustralia

During the Quarter, new patient numbers increased to over 4,300, representing a ~15% increase compared to the prior quarter and over a 30% increase compared to the previous corresponding period. The number of new patients for the 12-month period ended 30 June 2022 was more than 16,200, representing over a 50% increase compared to the prior year.

The number of new prescribers prescribing LGP roducts was over 145 for the Quarter,

representing a ~25% increase compared to the March quarter, and a 95% increase in new

Forprescribers from the previous corresponding period. The number of new prescribers for the 12- month period ended 30 June 2022 was more than 490 which is an increase of over 70% compared to the prior year.

Currently selling in

Strategically positioned

MRA with Denmark

Germany

Since its March quarterly, the Company has signed two key, large-volume supply agreements with Four 20 Pharma GmbH and Ilios Sante GmbH (see ASX announcements dated 19 May 2022 and 12 July 2022). These supply agreements add an additional $9.5 million potential value to LGP's German distribution portfolio which now has an aggregate potential value of $35 million over 3 years.1

In parallel with its existing medicinal cannabis market, there is a growing domestic and international expectation that Germany will introduce new supply pathway for cannabis into Germany: see European market developments below for further details. Should this eventuate, and Denmark is permitted to supply into that market, this would drive significantly increased sales into Germany in the coming years.

1 Assumes satisfaction of conditions precedent and minimum exclusivity purchases, minimum annual quantity and take or pay commitments.

Little Green Pharma Quarterly Activities Report and Appendix 4C

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Italy

During the Quarter the Company's Danish facility onlydelivered medicinal cannabis flower valued at $0.3

million (€210,000) to Italy in fulfilment of its successful Italian tender award: see ASX announcement dated 18 February 2022. The funds are expected to be received in the coming Quarter and anecdotal evidence from pharmacies confirms the products have been well-received by patients. Given the rigorous quality standards of the Italian flower tenders and relatively small pool of qualified

usebidders, the Company anticipates it is well positioned for success in future, larger cannabis flower tenders.

France

The Company continues to be the predominant supplier out of the four global manufacturers

personalparticipating in the French medicinal cannabis pilot, delivering over 8,000 units into the trial during the Quarter. With over 1,200 active patients and representing the sole pathway into the French market, LGP's participation in the trial continues to consolidate LGP's reputation as a significant medicinal cannabis supplier in Europe and is anticipated to give LGP a strong first mover advantage in a fully legalised French medicinal cannabis market. Further information in relation to the proposed French medicinal cannabis market is detailed in European market developments below.

United Kingdom

On 2 May 2022, the Company signed a 3-year agreement with Sana Life Sciences Ltd for the supply of LGP-branded oil and flower products into

Forthe United Kingdom and UK crown dependencies. The Agreement represents an annual revenue

pportunity of $1.4 million post-ramp up for the exclusive supply of the LGP's 10:10 medicinal cannabis oil alone with first deliveries expected in September 2022.

Denmark

In November 2021, LGP's Danish facility registered its flower medicine "Billinol"

THC16, following an approximate 2.5-year application and registration process. With this registration, the Company became the only domestic producer of medicinal cannabis flower (and one of only two suppliers of medicinal cannabis flower) in the country, with demand increasing steadily since introduction and Billinol already the dominant flower product in Denmark albeit relatively small volumes. This product registration not only gives LGP a privileged position in the Danish medicinal cannabis market but also gives LGP access to certain Nordic countries under mutual recognition schemes.

Spain

The Company holds an 8.6% interest in Spanish medicinal cannabis partner, Trichome Pharma S.L. (Trichome). Since 2020, the Company has supported Trichome's establishment of their cannabis cultivation operations in Spain, with Trichome recently being granted a medicinal cannabis cultivation licence and securing a partnership with Labiana Pharmaceuticals, an EU- GMP manufacturing of specialised medicines including psychotropics and pharmaceutical distribution capability.

With a population of ~47 million and Total Addressable Market of over $4.3 billion2, the Company regards the move as a very welcome first step towards broader medicinal cannabis uptake in a potentially significant additional European market; and with its investment in Trichome and appointment of a third independent non-executive director based in Spain, the Company is very well positioned to take advantage of this emerging medicinal cannabis market.

2 €3 billion (EU:AU 1.477): Prohibition Partners, "The European Cannabis Report 4th Edition (Jan 2019)" page 72

Little Green Pharma Quarterly Activities Report and Appendix 4C

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European market developments

During the Quarter there were highly encouraging market developments in key territories across

onlyEurope, including Germany, France and Spain. These developments, together with LGP's continuing progress in executing high-volume contracts with distributors across Europe, highlight the success of the Company's EU strategy and are expected to help underpin the next phase of LGP's expansion into Europe.

Germany

useIn 2021 the ruling Parliamentary coalition agreed in principle to the introduction of a new pathway for the supply of cannabis, with a draft bill expected at the end of 2022 or early 2023. The scope of this new pathway is still being finalised, with decisions pending in relation to manufacturing standards, product safety guarantees, taxation, and

personaldistribution; however early speculation includes the possibility of an EU GMP medicinal cannabis over-the-counter pathway option distributed via licensed German pharmacies. LGP anticipates that, depending on the final supply pathway chosen, the Company could be very well placed to supply into this market from its Danish operations.

Spain

In late June 2022, the Spanish Congress of Deputies formally requested the Spanish medicines agency, AEMPS, implement regulatory changes permitting the sale of extracts or standardised medicinal cannabis preparations in

harmacies within a period of 6 months.

Currently, prescriptions can be for cancer pain, Forendometriosis, fibromyalgia, and epilepsy, with

dispensing limited to hospital pharmacies and prescription by specialists; however the Company anticipates these initial exploratory changes will in time expand towards a far broader Spanish medicinal cannabis regime in line with other European and international jurisdictions.

3 Source: Canaccord Genuity Estimates -12 May 2021 (based on Worldometer).

Little Green Pharma Quarterly Activities Report and Appendix 4C

France

During the Quarter, the pharmaceutical regulator ANSM disclosed the anticipated parameters of a future French medicinal cannabis regime expected to come into effect following the cessation of the current French pilot in February 2023. These parameters include:

• EU GMP (or EU-GMP recognised) manufactured products only
• mandatory medical prescription required for all THC medicinal cannabis products
• indoor or greenhouse cultivation and production only (i.e. not broadacre)
• no current restrictions on cultivar types or dosage forms
• authorised list of therapeutic indications still to be defined
• packaging and labelling requirements in line with Australian and Danish requirements

While there is currently no guidance on potential government reimbursement or subsidies for patients (other than existing patients under the study), these parameters provide welcome clarity while also being clearly aligned with LGP's current product offering. These parameters, including the requirement to manufacture under EU GMP or cultivate in indoor or greenhouse facilities, will also likely operate to exclude other global producers from the market. With a population of ~67 million and estimated total addressable market of €4 billion at maturity3, France is one of the largest potential medicinal cannabis markets in Europe; and given LGP's role as predominant supplier to the current French pilot and the range of investigative studies currently being conducted in partnership with research institutions in France, LGP expects to be very well placed to leverage its brand reputation and supply history with patients and prescribers in the near future.

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