• The contract to supply the State of São Paulo is the largest public sector contract awarded to date in Brazil - the State of São Paulo is the largest state in the country.
• Ease Labs to supply up to 1.871 tons of pharma-grade CBD to the government over a 12-month period. Ease Labs' product is based on PharmaCielo's proprietary API.

Toronto, Ontario and Rionegro, Colombia--(Newsfile Corp. - March 26, 2024) - PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) ("PharmaCielo" or the "Company"), the Canadian parent of Colombia's premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S. ("Holdings"), and Ease Labs Pharma ("Ease Labs") a leading GMP-certified pharmaceutical company in Brazil specialized in developing, manufacturing, and distributing pharma-grade cannabis-based products, are pleased to announce that the pharmaceutical product "Cannabidiol Ease Labs 100mg/ml" (the "Product") owned and manufactured by Ease Labs in Brazil, has been selected by the State Government of São Paulo to be distributed as part of its new Public-Health Distribution Program (the "Program"). The Product is based on PharmaCielo's active pharmaceutical ingredient ("API").

The Program was created by Law # 17,618 in January 2023, with the purpose of providing the population with free access to cannabidiol products through public owned health institutions throughout the State of São Paulo, the largest state in Brazil. Initially, patients with Dravet Syndrome, Tuberous Sclerosis and Lennox Gastaut Syndrome will be eligible for access to the Product and to receive free treatment.

Management Commentary

Marc Lustig, Chairman and CEO of PharmaCielo, commented, "This is a milestone event for PharmaCielo, highlighting the returns available as large international markets continue to open to cannabinoid-based drugs and therapeutics. Our team has diligently worked to ensure that our pharma-grade APIs are included early in drug development pipelines. While many of these products are still early stage, once they are approved and in-market, PharmaCielo stands to reap significant benefit with APIs that are integral to the approval and viability of these products. Ease Labs is a leader in the Brazilian market and we look forward to many years of fruitful partnership as they continue to build a leadership position in this country of over 210 million people."

Gustavo de Lima Palhares, Founder and CEO of Ease Labs, added, "We are very happy to be part of the largest Cannabis-Public Health Program in the world right now, providing access to patients that need these solutions. PharmaCielo has been a key partner in our sales expansion, with a consistent, scalable supply chain and pharma-grade APIs, meeting and exceeding the quality standards required by our regulators."

Additional Background
In 2014, the Superior Court of Justice ruled in favor of underprivileged patients, deciding that the government is responsible for providing CBD treatment to this segment of the population. This created an important legal precedent and since that time, the number of lawsuits referencing this decision has increased across several states in Brazil, forcing the state governments to make large purchases of cannabinoid products to support their patient populations. With the launch of the new Program, the State Government of São Paulo not only seeks to reduce its ongoing costs related to these lawsuits but also to create a new public policy giving access to any patient within the Program's rules.

Shares for Settlement of Certain Amounts Owing
Today, the Company announced that as approved by TSXV, it issued 609,439 common shares of the Company ("Settlement Shares"), in satisfaction of $134,077 debt owed to certain former service providers of the Company.

The Company also announced that it intends to further issue, subject to the approval of TSXV, up to 1,562,500 Settlement Shares, in satisfaction of $250,000 debt owed to certain former service providers of the Company. The deemed price of the common shares to be issued have been determined as C$0.16, being the higher of the price of common shares at market close, or 10-day Volume Weighted Average Price on the date the board of directors of the Corporation approved issuance of shares, (the "Deemed Price"). The Settlement Shares will be subject to a four-month hold period under applicable Canadian securities laws, starting from the date of issuance of the Settlement Shares.

About PharmaCielo
PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and sustainable processing and supplying of all natural, pharmaceutical-grade medical cannabis products to large channel distributors. PharmaCielo's principal (and wholly owned) subsidiary is PharmaCielo Colombia Holdings S.A.S., headquartered at its cultivation and processing center located in Rionegro, Colombia.

The board of directors and executive team of PharmaCielo are comprised of a diversely talented group of international business executives and specialists with relevant and varied expertise. PharmaCielo recognized the significant role that Colombia's ideal location plays in building a sustainable business in the medical cannabis industry, and the Company, together with its directors and executives, is executing on a business plan focused on supplying the international marketplace.

About Ease Labs
Ease Labs Pharma is a pharmaceutical company based in Belo Horizonte - MG, Brazil, part of the Ease Labs Group, specialized in developing, manufacturing, and distributing pharma-grade cannabis-based products. Ease Labs is a pioneer in Brazil, being the first specialized pharmaceutical company in the country to be fully licensed by the Brazilian Health Agency, being granted a pharma-grade GMP and controlled substances certifications. As a leading company in Brazil, Ease Labs not only supplies products to the Brazilian government but also sells its medical grade products in the private market, across 27 states and through over 5,000 pharmacies.

For further information:

Commercial Inquiries:
Cristian Nova Salazar
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Ian D. Atacan, Director & Chief Financial Officer
+1 (416) 562-3220
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Media and Investor Inquires:
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Forward-Looking Statements

This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects", "is expected", "intends", "anticipates", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be completed or achieved.

Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including changes to PharmaCielo's development plans, the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products and the import of these products into other countries, TSX Venture Exchange approval, the inability to export or distribute commercial products through sales channels as anticipated due to economic or operational circumstances, risks associated with operating in Colombia, fluctuation of the market price for the Company's products, risks associated with global economic instability relating to COVID-19 or other developments, risks related to retention of key Company personnel, currency exchange risk, competition in PharmaCielo's market and other risks discussed or referred to under the heading "Risk Factors" in PharmaCielo's Annual Information Form for the financial year 2019, and the Management's Discussion and Analysis for the financial year 2022 which are both available at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, PharmaCielo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.