Mr. John Miller reports

THC RESTATES FINANCIAL STATEMENTS TO SHOW RECLASSIFICATION OF $250,000 FROM INCOME TO SUBSCRIPTION FUNDS

Due to a request from Trans-Medica Ltd. in September, 2016, THC Biomed Intl Ltd. has agreed to recategorize, from income to subscription funds, an amount of money that had previously been received by THC from Trans-Medica. As a result, THC will restate its annual financial statements for the year ended July 31, 2016, and the financial quarters ended April and October, 2016. While the $250,000 was initially received by THC pursuant to an invoice for services rendered and categorized as income, Trans-Medica contacted THC in the fall of 2016 to say that it had intended the funds to be used as subscription funds for shares at 25 cents each. Since the written agreement between the parties -- previously announced in press releases filed on May 14, 2015, and July 15, 2015 -- had allowed for that possibility, THC agreed in September, 2016, to convert the amount into shares at 25 cents. That price was available to the issuer for the issuance of shares pursuant to Canadian Securities Exchange policy at the time. As a result, the issuer will restate its financial statements to reflect that the money received was for subscription funds received in advance and not regular income.

"While this change results in our financial statements showing a greater loss, it is simply the result of the reclassification of the funds and the corresponding issuance of shares. There was no change to the actual amount of money received by THC," said Hee Jung Chun, chief financial officer of THC. "The reclassification came after the publication of the financial statements for April Q3 and the July year-end that are being restated. The subsequent quarter will be restated as well to reflect the change. While we are constantly testing and improving our procedures for internal controls, we are confident that they are effective. These restatements are the result of the discussions with Trans-Medica and our agreement to accept the funds as subscription funds."

We seek Safe Harbor.