Replenish begins production at Beiseker facility

Mr. Neil Weins reports REPLENISH NUTRIENTS ANNOUNCES BEISEKER FACILITY UPDATE Replenish Nutrients Holding Corp. has completed the first phase of commissioning at its Beiseker granulation facility and expected run-rate financial results once operations reach full capacity. Beiseker granulation facility update Replenish is pleased to announce that it has completed the first phase of commissioning at the Beiseker facility whereby the majority of the interior construction at the facility has been completed and the facility has begun producing initial production runs of the company's proprietary granulated fertilizer. Continuing refinement to the commissioning production runs will continue in the coming weeks to ensure all quality specifications and production efficiencies are met. Subsequent commissioning activities will include completing final interior and exterior construction at the facility as well as ramping production throughput capacity up to the full 2,000 metric tonnes per month as previously guided. Forward guidance As is standard in the agriculture industry, fertilizer pricing responds to changes in global, North American and regional ag commodity markets, however the company expects to generate pricing for its granulated fertilizer that will range from $550 to over $650 per metric tonne depending on market conditions and the specific product being sold. The company also expects to consistently generate gross profit margins on granulated fertilizer over 30 per cent upon reaching consistent full-scale production and sales cycles. These run-rate margins and cash flows are expected to result in annualized free cash flow for the consolidated company going forward. In turn, this will allow the company to not only obtain lower debt financing rates on its current debt, but also allow the company to unlock further favourable debt and equity financing for the company's future projects. Record of innovation and development Reflecting back over the past several years, Replenish has truly been a remarkable story in an agriculture sector that has traditionally been very slow to evolve and innovate and has been dominated by very large incumbents. Sustainable and regenerative agriculture has become a key theme in the sector in recent years as the world looks to decarbonize and Replenish is excited to play an important part in a story that has brought much needed innovation and development in the sector. Despite operating in a highly competitive market, Replenish has: Established key supply chains for the inputs to its products; Developed and patented a unique and innovative product that can fully replace or be used alongside conventional fertilizer products with proven lower carbon emission rates and a zero-chemical and zero-waste manufacturing process; Developed, planned, designed and partially financed three major projects at Beiseker, DeBolt and Bethune; Studied, proved and published numerous independently verified field trial data demonstrating product efficacy in- line or better than conventional fertilizer while also demonstrating quantifiable increases in biological activity in the soil contributing to plant health and resilience; Established meaningful sales and distribution channels across Western Canada and the United States Pacific Northwest covering well over a million acres of farmland as well as numerous golf courses and home lawns and gardens; Developed and closed key debt and equity financing arrangements and relationships to support its current and future development opportunities and restructured over $2-million of discretionary costs out of the business. Unlocking future growth Despite operating in the always difficult micro-cap public company space, Replenish has accomplished a lot over the past number of years and is excited to take these final steps in its evolution to full commercialization at the Beiseker facility, unlocking run-rate annualized free cash flows, and setting the company up for significant growth and profitability going forward. The company looks forward to providing further updates in the coming weeks and months as progress continues on its current and future development projects. "Our goal has always been to build a sustainable, profitable business that challenges the status quo of the fertilizer industry," said the company's chief executive officer, Neil Weins. "Beiseker is more than a facility -- it's a blueprint for what comes next." About Replenish Nutrients Holding Corp. Replenish Nutrients manufactures and sells proprietary fertilizer products containing essential macro and micro nutrients and biological material while using a proprietary zero-waste manufacturing process. We seek Safe Harbor.