Astron Connect Inc. Reports 2019 Second Quarter Results

Growing popularity with Chinese consumers drives strong revenue
growth in first six months of 2019

VANCOUVER, British Columbia–(BUSINESS WIRE)–Astron Connect Inc. (the “Company” or “Astron”, formerly “Exalt Capital
Corp.”) (TSX-V:AST), a leader in bringing Canadian food and beverage
products to China and other emerging markets, today announced its second
quarter results for the six month period ended March 31, 2019. All
dollar amounts are in Canadian dollars, unless otherwise indicated.

“The Company continued its steady growth in the second quarter as the
popularity of our products increased among Chinese consumers,” said
Randall Smallbone, President and CEO of Astron Connect. “The success to
date of Dutchman’s Gold Honey and Sachiel Water has shown
our ability to launch successful products in China and build demand from
buyers. We see further growth prospects in the country, and we are
excited to introduce new authentic Canadian food and beverage brands to
Chinese market.”

Highlights from the First Half of 2019

• Grew revenue to $901,912 in the first six months of the year from
  $5,038 the year before
• Increased gross profit to $175,914 in the first six months of the year
  from $1,014 the year before
• 19.5% gross margin on sales
• Net loss rose to $907,794 in the first six months of the year largely
  due to increased expenses associated with funding growth
• Ended the quarter with a cash balance of $1,716,408 to fund future
  expansion
• Signed a Memorandum of Understanding valued at as much as $3 million
  USD with Junding Industrial Co., an influential beverage supplier in
  the Northern Zhejiang region of China, to expand distribution of
  Sachiel Water products
• Added Fei Chu, a highly experienced food and beverage procurement
  executive based in Beijing, to the Board of Directors

For further financial information, please refer to the annual audited
financial statements.

“We have seen strong and growing demand for our products in China,
despite international trade tensions that have persisted in recent
months,” continued Mr. Smallbone. “We are continuing to explore further
partnerships with authentic Canadian food and beverage brands that we
believe will resonate with Chinese consumers, including ongoing product
taste tests with potential partners, and don’t anticipate geopolitical
issues will have a material impact on our business.”

Financial Statements and MD&A

The Company’s Financial Statements and Management’s Discussion and
Analysis (MD&A) for the three and six months ended March 31, 2019 will
be accessible on SEDAR at www.sedar.com
under Astron’s profile and on the Company’s website at www.astronconnect.com.

The TSXV has neither approved nor disapproved the contents of this
news release. Neither the TSXV nor its Regulation Service Provider (as
that term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.

ABOUT ASTRON CONNECT

Astron Connect (TSX-V:AST) helps Canadian enterprises in the food and
beverage industry break through the noise and bring their products to
new international markets in the emerging world. Astron Connect brings
Canadian food and beverage companies to the world through its extensive
connections and export logistics capabilities in China and emerging
markets. Sachiel Water (an Astron brand) supplies China and other
emerging markets with pure Canadian bottled spring water. For more
information, visit www.astronconnect.com.

Contacts

For more information:
S. Randall Smallbone
President
and CEO
Astron Connect
[email protected]

For media or investor inquiries:
Nick de Pass
Kaiser
Lachance Communications
(647) 725-2520 x210
[email protected]