Neptune Wellness Solutions Inc (NEPT)

[JohnCM]

Neptune Announces First Quarter Results

Phase I Investment of the Cannabis Business Plan Completed
And Phase II capacity expansion ongoing

Q1 Financial and Operational Highlights for the 3-month period ended June 30, 2018 compared to
the 3-month period ended June 30, 2017

• Multi-year Agreement announced on June 19, 2018 with Canopy Growth to provide extracted Cannabis
products.

• Completed Phase I investment of $5.0 million in site security and CO2 extraction equipment.

• Revenues were stable at $5.2 million in the current quarter compared with adjusted revenues for the
three-month period ended June 30, 2017 when considering the divestiture of the krill oil manufacturing
business on August 7, 2017.

• Net loss of $4.1 million versus $1.2 million in the prior year reflecting investment in cannabis business
development.

• Non-IFRS operating loss
was $2.3 million compared to an Adjusted EBITDA2
of $0.6 million in the prior
year reflecting investment in cannabis business development.

• Healthy cash balance of $22.9 million as at June 30, 2018.

• Subsequent event: Filing of two patent applications for innovative cannabis extraction processes on
August 9, 2018.

Laval, Québec, CANADA – August 14, 2018 – Neptune Technologies & Bioressources Inc. (“Neptune” or the
“Corporation”) (NASDAQ – TSX : NEPT), today announced its financial and operating results for the 3-month
period ended June 30, 2018. All amounts are in Canadian dollars.

“Our first quarter saw continued execution of our near-term growth strategy toward commercialization of our
B2B wholesale extraction business. We completed the Phase I deployment of capital investment on
installations of site security systems and CO2 extraction equipment and signed our first supply agreement to
extract cannabis products,” said Jim Hamilton, President and Chief Executive Officer.

“In the first year of operations, this agreement along with other projected opportunities are expected to
absorb approximately more than 80% of the 30,000 kg of dried cannabis extraction capacity.

At this stage,
based on our assumptions, we should be EBITDA positive from operations within that first year. As a late stage
applicant, we believe we are in the final stages of our licensing process which puts us on a path to commencing
production toward the end of fiscal 2019.”

“During the quarter, we also began work on our Phase II capacity expansion with a capital expenditure budget
of $4.8 million. This next phase is expected to be completed in the second quarter of calendar 2019 and will
increase the processing capacity of Phase 1 by more than six times using advanced extraction processes,”
added Mr. Hamilton.

Concluded Mr. Hamilton, “Our goal for fiscal 2019 remains to commercialize our wholesale extraction business
and to begin to realize the earnings power of our cannabis manufacturing facility while still operating at low
utilization rate. Longer term, our ambition is to expand into manufacturing, marketing and distributing of
value-added differentiated products globally in federally legal markets. Leveraging our expertise in extraction,
purification, formulation and science, we have a great foundation in place to become a leading innovative
health and wellness products company in the cannabis consumer products industry.”

Financial Results Highlights

Cannabis investments were initiated during the three-month period ended December 31, 2017. Therefore, no
cannabis results are included in the comparative results indicated below.
First Quarter Financial Results

• Revenues were stable at $5.2 million for the three-month period ended June 30, 2018, versus adjusted
revenues of $5.2 million for the three-month period ended June 30, 2017. Quarterly revenues for 2017
were adjusted to take into account the sale of the krill manufacturing business to Aker Biomarine on
August 7, 2017.

• Net loss was $4.1 million for the current quarter, versus $1.2 million for the three-month period ended
June 30, 2017.

• Non-IFRS operating loss1
was $2.3 million for the current quarter, compared to an Adjusted EBITDA
of
$0.6 million for the three-month period ended June 30, 2017. The variation of $2.9 million is coming from
the decrease of the gross profit related to the sale of the krill manufacturing business, the investment into
the Cannabis business and the increase of the corporate general and administrative expenses.

Consolidated Results

On a consolidated basis, until the loss of control on December 27, 2017, the first quarter ended June 30, 2017
includes a Non-IFRS operating loss1
of $2.1 million and a net loss of $2.8 million for Neptune’s subsidiary,
Acasti, which is actively engaged in clinical studies and research and development.

Cash and cash equivalents, including $2.4 million of restricted short-term investments, were $22.9 million as at
June 30, 2018.

Caution Regarding Non-IFRS Financial Measures

The Corporation uses two adjusted financial measures, Adjusted Segment Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) called non-IFRS operating segment loss when a segment is in a loss position, and Adjusted
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) called non-IFRS operating loss when the
Corporation is in a loss position, to assess its operating performance. These non-IFRS financial measures are directly
derived from the Corporation’s financial statements and are presented in a consistent manner. The Corporation uses these
measures for the purposes of evaluating its historical and prospective financial performance, as well as its performance
relative to competitors. These measures also help the Corporation to plan and forecast for future periods as well as to
make operational and strategic decisions. The Corporation believes that providing this information to investors, in addition
to IFRS measures, allows them to see the Corporation’s results through the eyes of management, and to better understand
its historical and future financial performance.

Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other
than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other
companies. Accordingly, they should not be considered in isolation. The Corporation uses Adjusted Segment EBITDA (or
non-IFRS operating segment loss when in a loss position) and Adjusted EBITDA (or non-IFRS operating loss when in a loss
position) to measure its performance from one period to the next without the variation caused by certain adjustments that
could potentially distort the analysis of trends in our operating performance, and because the Corporation believes it
provides meaningful information on the Corporation’s financial condition and operating results. Neptune’s method for
calculating Adjusted Segment EBITDA (or non-IFRS operating segment loss) and Adjusted EBITDA (or non-IFRS operating
loss) may differ from that used by other corporations.
Neptune obtains its Adjusted Segment EBITDA (or non-IFRS operating segment loss) measurement by adding depreciation
and amortization and stock-based compensation to segment income (loss) from operating activities before corporate
expenses. Neptune obtains its Adjusted EBITDA (or non-IFRS operating loss) measurement by adding to net income (loss),
net finance costs, depreciation and amortization and by subtracting income tax recovery. Other items such as stock-based
compensation and legal fees related to royalty settlements that do not impact core operating performance of the
Corporation are excluded from the calculation as they may vary significantly from one period to another. Excluding these
items does not imply they are non-recurring.

Conference Call Details

Neptune will be holding a conference call on August 15, 2018, at 8:00 AM (EST) to discuss its first quarter
results ended June 30, 2018.
Date: Wednesday, August 15, 2018
Time: 8:00 AM Eastern Standard Time
Call: 1 [phone] (within Canada & the U.S.)
1 [phone] (Outside Canada and the U.S.)
Webcast: A live audio webcast and presentation of the results can be accessed at:
http://neptunecorp.com/en/investors/events-and-presentations/


A replay of the call will be available for replay two hours after the call's completion, until September 15, 2018.
The telephone numbers to access the replay of the call are 1 [phone] or 1 [phone] (toll-free),
Conference ID 7288784.

The archive of the webcast, along with its accompanying presentation, will also be
made available immediately in the Investors section of Neptune’s website under Events and Presentations.

About Neptune Technologies & Bioressources Inc.

Neptune is a health and wellness products company, with more than 50 years of combined experience in
extraction, purification and formulation of value-added differentiated science-based products. Currently, the
Company develops turnkey nutrition product solutions available in various unique delivery forms, offers
specialty ingredients such as MaxSimil®, a patented ingredient that enhances the absorption of lipid-based
nutraceuticals, and a variety of other marine and seed oils. Leveraging its scientific, technological and
innovative expertise, Neptune is preparing to commence production of products in legal cannabis markets.
The Company's head office is located in Laval, Quebec.