HTC Purenergy: management discussion and analysis for the period ending September 30, 2021

Management discussion and analysis

The third quarter ends on September 30, 2021

an introduction

Discussing and analyzing the following management (“MD & A”) as of September 30, 2021, and should be read with a file HTC Purenergy Inc. dB HTC Extraction SystemsTM (“HTC“or the”a company“(Interim unaudited, condensed and consolidated financial statements for the nine-month period ended September 30, 2021)”interval“) and related notes attached thereto (together referred to as “”Financial Statements“), which have been prepared in accordance with International Financial Reporting Standards (“IFRS”).IFRSAll amounts are in Canadian dollars unless otherwise noted. The Company has adopted National Instrument 51-102F1 as a guideline in representing MD&A. Terms used but not defined in MD&A shall have the meaning as defined in Part 1 of the National Instruments (“).NI”) 51-102 and NI 14-101definitions Accounting terms that are not defined herein shall have the meaning described or used in IFRSs applicable to publicly accountable entities.

This MD&A is dated November 25, 2021.

Disclaimer of Forward-Looking Statements

Statements in MD&A that are not historical facts are forward-looking statements that involve known and unknown risks and uncertainties that could cause the Corporation’s actual results or results to differ materially from those anticipated and discussed here. In evaluating the forward-looking statements contained in this document, readers are encouraged to carefully read all cautionary statements contained in MD&A and accompanying financial statements, and in other filings with the Company’s Canadian regulatory authorities as found at “www.sedar.com” and not to rely excessively on such These statements are forward-looking. MD&A’s forward-looking statements include statements regarding: the expected performance of the Company’s business and operations and the Company’s intention to expand its business and operations; The organization’s expectations regarding expected revenues, expenses and cash needs; enterprise plans to expand extraction capabilities; The ability of the enterprise to meet consumer demand; The organization’s ability to implement its strategic priorities and objectives. The size of the market in which the enterprise operates; Business strategy of the enterprise for the extraction and purification of cannabis biomass; Receive all necessary regulatory and other external approvals to conduct its own CBD extractions; expectations of future processing; The ability of the enterprise to enter into new agreements to acquire cannabis biomass; and the company’s expectations with respect to the future operations and objectives of KF Hemp Corp. and Kase Farma Inc. In spite of HTC Management (“Management“) that the expectations reflected in the forward-looking statements are reasonable, and management cannot guarantee future results, activity levels, performance, achievements, or other future events. The forward-looking statements in MD&A speak only as of the date on which they are made, and management has no duty to update any of its forward-looking statements after the MD&A date, other than as required and governed by applicable securities laws.

Additional information related to the institution is available for viewing on SEDAR at the link www.sedar.com.

3

KF Hemp Corp.

As of June 30, 2020, HTC Acquired KF Hemp Corp. (“HempCo‘), which is a company qualified to grow, process, dry, store and sell hemp under the Industrial Hemp Regulations of cannabis law (Canada) (“cannabis license“).

HempCo It owns hemp cutting, handling, drying, sizing and sorting equipment, which is installed at its hemp processing facility, located in LaGuard, Saskatchewan, and boasts agreements with local growers under which these growers will produce IPGrowTM (Identity reserved) Industrial Hemp. Farmers will select the ideal land for hemp production and implement the Optimum Fertility Package and Crop Protection Program for high yield biofibers, hemp seeds and high hemp flower biomass.

hemp fiber

HTC Completed construction of approximately 27,000 square feet of hemp bio-fiber processing and storage facility, which will be used to process bio-fiber into bio-plastic pellets and biochar/hemp soil fertility pellets, as well as store and package biomass ready for extraction.

Cannabis biomass lottery agreements

HTC It is currently involved in contracts with producers and suppliers of cannabis biomass in the United States. extract, in Kase Farma company (“Case Pharma“or”Cassie‘) At Ceres, California moved to commercial production. HTC You will be looking to ensure harvest and processing volumes by selecting qualified harvesting contractors, using diverse planting sites and regulated high performance genetics, and by irrigation that can provide growing sites with 2-3 annual crop rotations with new CBD, CBG, CBN and other varieties The genetics of cannabis.

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Kase Farma Inc. Based in California – http://KaseFarma.com

On January 28, 2020, HTC Complete a purchase and share agreement (“Spa(“) with Starling Brands Inc. (“starling“), by HTC Acquired all issued and outstanding shares in the state of California Case Pharma. Case Pharma Authorized to operate in the fields of cannabis extraction, refining, formulation, and distribution in California.

A core part of the acquisition is a management services agreement with Starling, led by Mike Reynolds, CEO, and Drew Ford, chief science officer, both of whom are highly regarded experts in the cannabis extraction and refining industry.

Case Pharma Received and operated equipment capable of handling and distilling 10,000 lbs. per day of dried biomass in the California extraction process. Casey Pharma The extractions are part of a total facility of 22,000 square feet owned by Starling. Case Pharma launched its Identity Preservation Initiative, or IPGrow™, for wholesale and retail markets, under the brand “Kase One – one life; one factory. In addition to, Case Pharma Joined by reputable cannabis growers in the Central Valley of California who will provide high performance, IPGrow™Superior, genetically engineered production of specially formulated cannabis formulations.

Starling owned by Kase Manufacturing Inc. , is one of the first certified volatile and non-volatile cannabis extract manufacturing laboratories in California. As part of the acquisition process, Case Pharma You have an intellectual property license agreement with Starling that permits the transfer of technology where Starling’s intellectual property and technology licensed under this agreement may be used and published in HTC Facilities in Saskatchewan.

Investments in ESG companies

HumaTerra Regen AG Inc.

HumaTerra provides a natural and profitable solution for both conventional and organic growers. It restores soil fertility with the help of microbial organisms harvested from compost organic waste and recycled by-products.

The company’s investment of 18% in HumaTerra and its renewable bio-soil preparations for the agriculture sector has proven to be timely and certainly shows very promising. HumaTerra enters its first year of mass commercial production for its biosoils in 2022. Fundamentals of business and opportunity for growth great.

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disclaimer

HTC Purenergy Inc. Share this content on November 26, 2021 He is solely responsible for the information contained therein. Distributed through general, unedited and unmodified, dated Nov 26, 2021 at 20:49:06 UTC.