THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

9 September 2023

Chill Brands Group plc

("Chill Brands" or the "Company")

Vape Sale to Major Retailer

Chill Brands Group, the consumer packaged-goods distribution company, is pleased to announce the sale of its Chill ZERO nicotine-free vapour products into WHSmith stores.

The Company will now see its Chill ZERO products enter an initial 150 of WHSmith's 1,700 stores. These first outlets are WHSmith UK travel stores located in airports, train stations and other high traffic hubs including Heathrow, Gatwick and Kings Cross Station. These areas benefit from an estimated combined daily footfall of more than 500,000 passengers per day.

Further to this agreement, Chill Brands has now secured initial orders from UK retailers worth in excess of £350,000 since the local launch of Chill ZERO during August 2023. This includes sales made to more than 200 independent stores. The agreement has been facilitated by The Vaping Group and Phoenix 2 Retail, one of the UK's largest distributors of vaping products.

Chill Brands continues to work with partners in the UK and US to expand its retail distribution network. Further information regarding sales and store activations will be provided when appropriate.

Callum Sommerton, Chief Executive Officer of Chill Brands, said: "We are delighted that WHSmith will be the first major UK retailer to stock our Chill ZERO range of nicotine-free vapes. This deal will see our products go on sale in major transport hubs throughout the country, providing exposure to hundreds of thousands of potential customers every day.

This significant milestone marks the beginning of an exciting journey for the Company and is a clear sign of things to come. We are committed to further expanding our presence in the market, developing more strategic partnerships, and continuing to deliver innovative products to consumers seeking quality alternatives to tobacco and nicotine."

-ENDS-

About WHSmith

WHSmith is a leading retailer of travel essentials and convenience products. With more than 1,700 stores operating in over 30 countries, WHSmith provides customers with a wide range of printed media, digital accessories, food and beverages, and other items including vapour products. WHSmith operates an extensive network of travel stores which are a prominent feature of high footfall locations including airports, train stations and motorway service areas. Their strategic placement in transport hubs makes them a go-to destination for commuters and travellers across the UK and beyond.

About Phoenix 2 Retail

Phoenix 2 Retail is one of the UK's foremost suppliers of vaping products. They distribute products from leading brands to supermarkets, wholesalers, convenience outlets and garages throughout the UK. Phoenix operates a pre and post market testing and compliance programme, ensuring product quality and maintaining the trust of retailers and consumers. Phoenix recently announced that it aims to provide recycling units to 15,000 stores operated by its retail partners by the end of 2024, facilitating the responsible disposal of vapour products at convenient retail sites across the country.

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is concerned with the development, marketing and distribution of wellness and recreational products containing natural, functional ingredients. The Company's proprietary product range is distributed by some of the most recognisable convenience retail outlets in the US and includes nicotine-free disposable vapour products that cater to the rapidly growing market for tobacco alternatives. Chill Brands also operates the chill.com e-commerce website, on which it is building a marketplace of products from third-party brands.

Publication on website

A copy of this announcement is also available on the Group's website at http://www.chillbrandsgroup.com

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