DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) ("Delta 9" or the "Company"), is pleased to announce that it has completed its final services milestone under an agreement with Alberta based cultivation and processing partner, Element GP Inc. (“Element”). Element is an arm’s length third party in which the Company has no ownership control or interest.

As one of Delta 9’s cultivation and processing partners, Element entered into a Strategic Cooperation Agreement (“SCA”) with the Company whereby Delta 9 provides services relating to the cannabis production, development of standard operating procedures, sanitation programs, consulting on Health Canada licensing, marketing services to develop the Element brand and other services supporting the acquisition of the Health Canada license. On September 3, 2021, Element confirmed it had reached its final milestone under the SCA and has been granted its cannabis standard cultivation and standard processing licenses from Health Canada (the “Health Canada License”).

“We are delighted that Element Cannabis has received a Health Canada License for 8 of our proprietary and turn-key Grow Pod and Extraction Pod systems and has future plans to apply for increased capacity under the current Health Canada License to expand their extractions operations capacity and to grow cannabis vertically in their newly built 64,000 sq. ft. facility,” said John Arbuthnot, CEO of Delta 9. “Our turnkey platform for Grow and Extraction Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services.”

Delta 9's cultivation and processing production methodology is based around a modular, scalable, and stackable production unit called a "Grow Pod", which are based on retrofitted 40-foot shipping containers. The turnkey smart growing platforms are developed using precision hardware and software grow applications for the indoor cannabis cultivation marketplace. Delta 9 offers vertical growing units, integrated grow racks, LED grow lights, and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and automated fertigation and watering systems.

Element’s facility has been designed using this turnkey and state of the art Grow Pod and Extraction Pod system for their processing and cultivation requirements. Their extraction facility has been custom designed using three interlocking Grow Pods to house their extraction equipment to process cannabis distillate and isolate products. Delta 9 has now successfully licensed over 200 Grow Pods in third party facilities across Canada.

“Element Cannabis Group is a privately owned cannabis cultivator with an extraction facility based in Clearwater County, Alberta, which is midway between Calgary and Edmonton,” said Jeff Brookman, Founder and CEO of Element. “Our goal is to produce high-quality extracts, concentrates and oils for the infused cannabis food and beverage industry throughout Canada and on the international level.”

Element developed a purpose built 64,000 sq. ft. state-of-the-art cultivation and extraction facility with 40-foot ceilings, on a 40-acre parcel of land. The facility includes the latest technology surrounding climate control and grow room automation along with plans for an EU GMP certified extraction lab. The current production facility occupies 25% of the building and represents a first step in a more significant growth strategy, as it makes plans to triple its production by growing cannabis vertically. Element uses natural gas to produce very economical electricity and is striving to be one of the lowest cost indoor cannabis facilities in Canada.

The well-rounded Element team has a strong entrepreneurial background, with an executive team that has many years experience of growing cannabis for extraction purposes. The Element team is committed and passionate about growing premium cannabis for extraction purposes and looks forward to providing high-quality extracts, concentrates and oils for the infused cannabis food and beverage industry.