Blue Heron Announces Significant Retail Expansion, Addition of President, and Growth Capital to Accelerate Product Initiatives

Vancouver, British Columbia--(Newsfile Corp. - August 24, 2021) - Blue Heron Creamery, ("Blue Heron" or the "Company") a global leader in the production of next generation of plant-based dairy alternatives is pleased to provide an update on the progress of its growth initiatives regarding retail distribution, expanded management team, capital raising and updated web presence.

Save-On-Foods & Improved Retail Packaging

Blue Heron is pleased to announce a relationship with Save-On-Foods ("SOF"), owned by the Overwaitea Food Group, an established retail grocer that serves approximately two million people per week from its locations across Western Canada. Blue Heron has launched four of its most popular SKU's; Herb & Garlic, Cormorant, Le Bleuet, and Crown cheese across all of Save-On-Foods 110+ locations in British Columbia, with an additional 70+ locations in Alberta, Saskatchewan, Manitoba and the Yukon to be added as soon as the week of August 20th.

Through efforts undertaken with SOF, Blue Heron was able to successfully showcase its collection of premium plant-based cheeses in the deli area alongside traditional cheese products, rather than being placed separately as a cheese alternative. Pilot projects have concluded that consumers are more likely to purchase plant-based cheese when it is located in the dairy section of supermarkets. Save-On-Foods is intent on relaunching their deli area, which will have a section featuring premium plant-based offerings, of which Blue Heron will be the category leader, to meet the evolving taste preferences of their customers.

In conjunction with the increased distribution, the Blue Heron is excited to announce the creation of new retail packaging for the four SKU's launched in the SOF network. Additionally, the Company will be offering its products in larger packaging formats which will result in a greater contribution margin per kilogram.

Blue Heron and Save-On-Foods are both well attuned to evolution of consumer and consumption preferences. These changes are consistent with the trends outlined in a recent research study conducted by Research and Markets ("Vegan Cheese Market to 2027 - Global Analysis and Forecast - by Product Type, Form, Source, and Distribution Channel") the Non-Dairy Cheese Market Size^[1] was valued at US $2.7 billion in 2019, and it is expected to grow at a CAGR of 7.1% during 2020-2027 to reach US $4.65 billion by 2027.

Livleen Veslemes joins Blue Heron as President

Blue Heron is thrilled to announce that Livleen Veslemes will join Blue Heron as President effective August 16, 2021. Livleen is a seasoned leader, executive and entrepreneur in both the retail food and beverage and medical sciences industries in Canada and the United States having been a key leader in the exponential growth of a number of companies over the past 15 years. Livleen is a Chartered Professional Accountant ("CPA") and has multiple years of public company experience in both an operational and financial role. Karen McAthy, Blue Heron Founder & CEO commented, "Blue Heron could not be more excited to have Livleen join our growing business. Her experiences will no-doubt help to successfully drive Blue Heron's immediate growth plans, both in food production and distribution and our science led R&D work. Additionally, Livleen's outlook on life and the purpose of business is completely aligned with the values of our Company and how we are looking to make a positive, and long-lasting, impact on the communities and industries we serve."

Equity Financing and Accelerator Grant

To fund Blue Heron's aggressive growth strategy the Company has completed a non-brokered financing of $1,203,027 through the issuance of 4,063,423 shares at $0.30 per share. Funds were raised privately through Blue Heron's board of directors network and closed on August 9, 2021.

The Company has also been approved for a significant non-dilutive capital injection through a British Columbia-based grant program which will provide Blue Heron with $250,000 towards capacity expansion costs associated with key equipment purchases, new packaging and aging caves. The funds raised between the equity financing and government grant will be allocated general operating expenditures and small capital investments in equipment for the production facility. "We gratefully acknowledge the financial support of the Province of British Columbia through the Ministry of Jobs, Economic Recovery and Innovation," says Karen McAthy.

Updated Blue Heron Web Presence

The Company has also launched its newly rebranded website and brand, which can be viewed at https://www.blueheroncheese.com^[2] and across the Company social media channels. The website features improved user functionality, bold branding and improved imagery. Blue Heron aims to use this website to share its story in a functional way so new and existing customers can be better informed about the Company's unique offerings and compassion to create food for the greater good.

About Blue Heron Creamery

Blue Heron Creamery is an award-winning, next-generation plant-based innovator and producer of 100% dairy-free, vegan artisan cheeses. Blue Heron uses true cheese-making methodologies by utilizing a proprietary science-first approach with active bacterial cultures and enzymes specific to plant-based protein reactions.

For further information please contact:

Karen McAthyChief Executive OfficerChef@blueheroncheese.com^[3]604-710-6846

Kevan MathesonCorporate Communications and Investor RelationsInvest@blueheroncheese.com^[4]

Cautionary Note Regarding Forward-Looking Information

In the interests of providing Blue Heron Creamery Ltd. ("Blue Heron " or the "Corporation") potential investors with information regarding Blue Heron, including Management's assessment of future plans and operations relating to the Corporation, this document contains certain statements and information that are forward-looking statements or information within the meaning of applicable securities legislation, and which are collectively referred to herein as "forward-looking statements". Forward-looking statements in this document include, but are not limited to statements and tables (collectively "statements") with respect to: capital projects and expenditures; strategic initiatives; anticipated activity and industry trends; and anticipated performance. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, as well as known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and which may cause Blue Heron's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by the forward-looking statements. These assumptions, risks and uncertainties include, among other things: Blue Heron's ability to successfully implement strategic initiatives and whether such initiatives yield the expected benefits; future operating results, Blue Heron's ability to generate sufficient cash flow from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital; economic conditions; and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by Blue Heron. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements contained in this document are made as of the date of this document or the dates specifically referenced herein. All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Any financial outlook or future-oriented financial information, as defined by applicable securities legislation, has been approved by management of Blue Heron. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Blue Heron. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Corporation is not a "reporting issuer" in any province or territory in Canada or equivalent in the United States. There is no guarantee that a going public transaction will be completed or that the Corporation will become listed on any stock exchange. Accordingly, the Corporation may never complete a going public transaction and may never become a "reporting issuer" in any jurisdiction in Canada or the elsewhere.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94219^[5]

References

1. ^{^} Cheese Market Size (www.newsfilecorp.com)
2. ^{^} https://www.blueheroncheese.com (www.newsfilecorp.com)
3. ^{^} Chef@blueheroncheese.com (www.newsfilecorp.com)
4. ^{^} Invest@blueheroncheese.com (www.newsfilecorp.com)
5. ^{^} https://www.newsfilecorp.com/release/94219 (www.newsfilecorp.com)