Global Hemp Group Inc (GBHPF)

[BigNexEnd]

$GBHPF.Filed.1st.Q.2019.Financials.On.03.01.19..MD&A.Tells.Of.Progress..

Business Update
As part of Phase One of Company’s development plan, the Company embarked on hemp cultivation in both Canada and
the United States with its Joint Venture funding partner Marijuana Company of America (the “Partners”). Nearly 160
acres of hemp was grown at the projects in 2018, employing both orchard style and field crop methods. This was the first year that both methods we employed giving the Company an opportunity to evaluate the best method of creating biomass for the extraction of cannabinoids.

SCIO, OREGON, USA ? High Yielding CBD Hemp Project
Located in the fertile Willamette Valley, approximately 70 miles south of Portland, the Company’s 109 acre Joint Venture
farm was acquired in 2018 because of a history of hemp cultivation, irrigation infrastructure with sufficient authorized
water rights to allow for irrigated cultivation, and contained a high level of organic matter in the soil, making it ideal for
hemp cultivation. The 2018 cultivation utilized the lower 33 acres of the farm and produced 48,000 pounds of dried
biomass.
The team in Scio is in the process of hammermilling the biomass prior to it being sent out for extraction of the
cannabinoids. This next level of processing will not only prepare the biomass for extraction but will also reduce the
storage space requirements by more than 50% as the bulk of the plants is reduced in size. This is the next step in
monetizing the 2018 harvest.

Preparation for the 2019 cultivation at the farm is now well underway, with the team targeting June 1st as the planting
date this year. The Company continues to evaluate ways to expand the project in the area. Discussions are underway
with local farmers who have expressed interest in partnering with the Company for the 2019 season.

NEW BRUNSWICK, CANADA Hemp Project
The Partners are developing a multi-phase hemp/CBD project on the Acadian peninsula, in northeast New Brunswick
(NB), Canada. Four farmers were contracted to grow hemp on 125 acres in the region for cannabinoid extraction in a
field cropping style. This was the second year that the hemp was grown in region, after a 20 year hiatus.
The project produced 17.5 tonnes of dried biomass from the 2018 harvest. Management anticipates significantly better
results with improved genetics and the further refinement of farming and processing practices. Industrial hemp cultivars
containing 4-5% CBD already on trial in NB would more than double the performance of current cultivars used in 2018
but have yet to be registered for use as a Health Canada approved cultivar.
Management is assessing how best to monetize the 2018 harvest. Until recently, the lack of processing infrastructure has
been a bottleneck for the entire emerging hemp industry. The change of legislation in late 2018 allowing for the extraction
of the flowers and leaves from the hemp plant has been a catalyst for investment in this type of processing infrastructure
in the industry. This is now beginning to translate into more opportunities to monetize hemp biomass going forward. The
Company is in discussions with a number of potential purchasers of the biomass at this time and is working to secure an
agreement with a processing partner.

Cash Crop Today Media, LLC
The Company holds a 50% equity interest in Cash Crop Today Media, LLC (“CCT”) (http://cashcroptoday.com). CCT
is a global media, branding, and technology company that is focused on reporting the latest industry news related to
investment information, entrepreneurship, politics, and technology from the industrial hemp and cannabis sectors. CCT
offers an array of business to business and consumer marketing services such as digital media placement and
advertising, curated video content development, management of social media campaigns, and regional, national, and
international distribution. CCT continues to develop its brand and build out its online presence.