Ionic Brands : Terminates Letter of Intent for Business Combination with a Canadian Licensed Producer

IONIC BRANDS TERMINATES LETTER OF INTENT FOR BUSINESS COMBINATION WITH A CANADIAN LICENSED PRODUCER

Vancouver, BC January 18, 2021 - Ionic Brands Corp. ("Ionic" or the "Company") (CSE: IONC / FRA: IB3 /

OTC QB: IONKF) Ionic Brands Corp. announces the termination of letter of intent for a business combination with a Canadian licensed producer as previously announced on December 19, 2021. The parties failed to reach mutually agreed to terms to form a legally binding agreement.

John P. Gorst, Ionic Brands Corp. Chairman and Chief Executive Officer, said, "I remain optimistic about other future opportunities, in addition to continuing to build out Ionic Brands, and more importantly, we will continue to aggressively pursue business combinations that are accretive to building shareholder value." Further, John Gorst states, "Ionic is dedicated to building a regionally based multi-state consumer- focused cannabis concentrate brand portfolio with strong roots in the premium and luxury segments of vape concentrates and edibles. The cornerstone brand of the portfolio, Ionic, is a top vaporizer brand in Washington State along with its economy brand Dabulous and has aggressively expanded throughout the Pacific Northwest of the United States. The Company is currently operating in Washington and Oregon. Ionic's strategy is to be the leader of the highest-value segments of the cannabis market."

On behalf of Ionic Brands Corp.

John Gorst,

Chief Executive Officer

For further information, please contact John Gorst at (253) 682‐8392, by email a [e-mail] visit our website: www.ionicbrands.com.

This news release was prepared by management of Ionic, which takes full responsibility for its contents. The Canadian Securities Exchange ("CSE") has not reviewed this news release, and neither it nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

Statements in this news release that are forward‐looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Ionic's periodic filings with Canadian securities regulators.

When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward‐looking statements.

Forward‐looking statements may include, without limitation, statements related to market projections, total retail footprint of the combined company, the business combination and other statements of fact.

Although Ionic has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward‐looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US Federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical‐use and adult‐use marijuana industry and; regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward‐looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward‐looking statements. The forward‐ looking statements in this news release are made as of the date of this release. Ionic disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Ionic does not assume any liability for disclosure relating to any other company mentioned herein.