Third Quarter Highlights



Revenue of $3.8 million with gross margin of 56%

Year to date revenue of $13.4 million, up over 30% year over year

Initial operations and revenue from the Extraction Facility (as defined below)

Closed $23 million bought deal financing (the "Offering")

VANCOUVER, British Columbia, Nov. 28, 2018 (GLOBE NEWSWIRE) -- Sunniva Inc. ("Sunniva", the "Company", "we", "our" or "us") (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, today released its financial and operational results and management's discussion and analysis for the three and nine months for the third quarter of 2018 ended September 30, 2018. All figures are reported in Canadian dollars ($) unless otherwise stated. Sunniva's financial statements are prepared in accordance with International Financial Reporting Standards.

"We continue to make progress towards completion of Phase 1, the first 325,000 square feet, of our purpose built, high-technology cannabis greenhouse in Cathedral City, California. While we have remained committed to advancing our operations in order to play a leadership role in the California cannabis market as we launch our first Sunniva branded products in the first quarter of 2019, we have maintained solid performance of our existing operations with $3.8 million in revenue and gross margins of 56% in the third quarter. We have now generated year to date revenue of $13.4 million, a 30 percent increase over this same period last year," said Anthony Holler, Chief Executive Officer of Sunniva.

"With our strategic assets in place in California, we are now in a position to accelerate our revenue growth by advancing upon our upstream vertical opportunities. We will soon demonstrate our ability to become one of the lowest cost operators producing pesticide-free, premium quality cannabis products, and achieving true vertical integration by:

leveraging our purpose built, large-scale, high technology cGMP designed greenhouse in Cathedral City (the "Sunniva California Campus");

accelerating production within our licensed volatile and non-volatile extraction facility in Cathedral City, California (the "Extraction Facility");

producing and stockpiling inventory for Sunniva-branded product launches commencing Q1 2019;

completing the pending acquisition of LTYR Logistics, LLC ("LTYR") for state-wide distribution of Sunniva-branded products;

aggressively pursuing dispensary retail expansion throughout California; and

integrating our additions to the California management team to facilitate growth and revenues in 2019.

Dr. Holler continued, "In Canada, we concluded our formal engagement with Canaccord Genuity Corp. to conduct a thorough examination of the Canadian cannabis market to define Sunniva's strategy for our Canadian operations. We can confirm the Company intends to spin-out its Canadian assets (the "Spin-Out") into a separate Canadian entity ("Spinco"). Our Canadian assets include Natural Health Services Ltd. ("NHS"), which owns our seven physician-based medical clinics throughout Canada and Sunniva Medical Inc. ("SMI"), which is our licensed producer applicant and owns the 126-acre parcel of land in Okanagan Falls, British Columbia, the site for a large-scale, purpose-built cGMP designed greenhouse (the "Sunniva Canada Campus")."

Financial Highlights – Three and Nine Months Ended September 30, 2018

Consolidated Financial Highlights expressed in 000's of CDN$, except per share amounts

Three Months Ended September 30, 2018 2017 Change

Revenue 3,739 4,562 (823 ) Cost of Goods Sold 1,634 2,834 (1,200 ) Gross Margin 2,105 1,728 377 Selling, General and Administrative 6,420 5,089 1,331 Share-based Payments 2,303 3,311 (1,008 ) Amortization Expense 751 660 91 Loss from Operations (7,369 ) (7,332 ) (37 ) Net Loss (6,781 ) (6,247 ) (534 ) Basic Loss Per Share $ (0.21 ) $ (0.25 ) $ 0.04 Weighted Average Number of Shares 32,042,054 25,374,940 6,667,114 Total Number of Shares Outstanding 32,054,215 26,623,016 5,431,199 Nine Months Ended September 30, 2018 2017 Change

Revenue 13,372 10,215 3,157 Cost of Goods Sold 6,386 6,036 350 Gross Margin 6,986 4,179 2,807 Selling, General and Administrative 16,933 9,830 7,103 Share-based Payments 6,408 3,311 3,097 Amortization Expense 2,171 1,792 379 Loss from Operations (18,526 ) (10,754 ) (7,772 ) Net Loss (17,961 ) (17,953 ) (8 ) Basic Loss Per Share $ (0.59 ) $ (0.72 ) $ 0.13 Weighted Average Number of Shares 30,386,117 25,101,369 5,284,748 Total Number of Shares Outstanding 32,054,215 26,623,016 5,431,199



Results of Operations – Three Months Ended September 30, 2018

For the three and nine months ended September 30, 2018, the Company generated $3.7 million and $13.4 million in revenue, respectively. NHS contributed $2.5 million and $8.4 million, Full-Scale Distr