Mr. Matt Willer reports

XYLITOL CANADA INC. FINANCIAL RESULTS FOR THREE MONTHS ENDED MARCH 31, 2016

Xylitol Canada Inc. has released its financial and operating results for the three months ended March 31, 2016.

Highlights of the results are found in the attached table.

                      FINANCIAL HIGHLIGHTS
                                                  Three months ended March 31,  
                                                        2016             2015

Revenue                                         $  1,862,630     $  1,843,593
Gross profit                                    $    283,958     $    240,504
Net (loss)                                      $   (819,287)    $ (1,169,727)
(Loss) per share                                $     (0.009)    $     (0.013)

The full text of the company's interim consolidated financial statements and related management's discussion and analysis can be found at SEDAR.