• The updated set of regulations opens doors for new cannabis-derived product categories to be developed and sold domestically and for export
• Decree addresses and closes regulatory gaps; improves Colombian cannabis industry's competitiveness on a global scale
• Opens the path for the development and sale of additional THC product types, as well as the commercial export of dried flower.

PharmaCielo Ltd. ("PharmaCielo" or the "Company") (TSXV: PCLO) (OTCQX: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., congratulates the Colombian Government and President Duque for signing the new set of legislation (the "Decree"). The Decree aims to make the country's legal cannabis industry more competitive on a global scale. In addition, the Decree creates greater legal clarity, provides quotas for a new low-THC extract category and offers producers new business opportunities for domestic and export purposes among other key elements.

"The Colombian government has rightly identified the legal global cannabis sector as a substantial growth opportunity for the country, and the Decree represents further evidence that the Government continues supporting the industry's development into a higher level of competitiveness on a global scale," says Henning von Koss, CEO of PharmaCielo. "As one of the Colombian industry's early pioneers and a founding and continuing board member of Asocolcanna, PharmaCielo has been actively engaged in the consultative process run by the Government that led to this Decree and we are very pleased with the progress and the updated regulations. With industry-leading extraction and formulation capabilities, truly world-class scale and a deep, high-quality product portfolio of both extracts and dried flower, PharmaCielo is ideally positioned to benefit from the new set of regulations introduced."

Among the various regulatory updates introduced in the new Decree, we believe that three stand out as bearing the highest potential to drive forward both PharmaCielo and the Colombian medical cannabis industry as a whole:

• Allowing the domestic commercialization and industrial use of CBD into additional non-medical industrial product categories including wellness, beauty/cosmetics, functional foods and beverages. This potentially opens a broader array of business opportunities for PharmaCielo to collaborate with Colombian end-product manufacturers in these categories for the development of new products for local and international consumption.
• Closing a legislative gap by allowing authorization quotas for low-THC extracts for commercialization and exportation. This enables cannabis extracts producers to commercialize and export low-THC derivatives and input materials, highly sought-after ingredients that are by-products derived from non-psychoactive cannabis extraction processes.
• Providing a clear future path, following further consultation and completion of technical regulation, for the exportation of medicinal use dry-flower as a final product for patients' consumption. PharmaCielo's specialization and fully focused propagation of in-vitro tissue culture cloning of the mother plants is a unique solution that guarantees the uniformity and consistency of the flowers' chemical profile and content. We believe this is the most important criteria for achieving secure and sustainable provision of dry flower for medical purposes.

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, medicinal-grade cannabis oil extracts and related 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 centre 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.

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 in this news release include, without limitation, statements with respect to: expectations that new cannabis-derived product categories will be developed and sold domestically and for export; expectations that the Decree and related regulations will improve the Company's, industry's, and local competitiveness; expectations that additional THC product types, including dried flower, will be developed, sold, or exported; expectations that the Colombian government will continue to support the development of the cannabis industry's competitiveness; expectations that PharmaCielo will benefit from the Decree and regulations introduced today; expectations that the Decree and regulations will drive forward PharmaCielo and the Colombian cannabis market; expectations that a broader array of business opportunities will exist for PharmaCielo to collaborate with Colombian end-product manufacturers for the development of new products for local and international consumption; expectations that cannabis extracts producers will be able to commercialize and export low-THC derivatives and input materials; and that the requisite additional consultations and implementation of the necessary technical regulation will occur. .

The forward-looking statements in this news release are necessarily based on assumptions, including assumptions with respect to: PharmaCielo's ability to execute its business plan, PharmaCielo's ability to obtain necessary regulatory approvals for the export of its products from Colombia and import of its products into other countries, sufficient demand for the Company's products, that potential customers will be satisfied with the results of audit processes, that any changes to Colombian cannabis legislation will not negatively impact the Company's business, that the Company will be able to locate and retain necessary personnel to achieve its business goals, PharmaCielo's ability to maintain its distribution contracts in good standing and the accuracy of PharmaCielo's projections regarding the market for cannabinoid products.

Though management believes that its assumptions are reasonable in the circumstances, the actual results, performance or achievements of PharmaCielo's business may be materially different from any future results, performance or achievements expressed or implied by any forward-looking statements in this news release. 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, TSXV 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 ended December 31, 2019, which is available at www.sedar.com. 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 TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.