Mr. Peter Swistak reports

CAVAN ENTERS INTO A NON-DISCLOSURE AND STANDSTILL AGREEMENT FOR AGRICULTURAL LANDS IN THE PHILIPPINES

Cavan Ventures Inc. has entered preliminary discussions with a private arm's-length vendor regarding 150 hectares of agricultural land in the Philippines. The agricultural land is located approximately 3.5 hours from Manila, the Philippines's largest port and capital city.

The company intends to begin its due diligence analysis of the agricultural land immediately, particularly as to its suitability for the construction of a hemp cultivation and manufacturing plant for hemp and cannabinoid products. As previously announced (see the company's news release on March 25, 2014, and the clarifying news release on Nov. 24, 2014), the company intends to diversify its operations into the hemp and cannabinoid industry. The company and the private vendor have entered into a non-disclosure and standstill agreement with respect to these discussions. At this time, no further deal terms have been reached, nor has the company entered into any letters of intent or definitive agreements with respect to the agricultural lands. As the company's discussions remain at a preliminary stage only, there can be no assurance or guarantee that the company will enter into a binding agreement with respect to the acquisition of such agricultural lands. The company will provide further updates as they are available.

As such, the company further cautions investors that: (i) the company does not presently have regulatory approvals to become a producer of hemp or cannabinoid products in the Philippines; and (ii) any transaction resulting in the company's entry into the hemp/cannabinoid industry, or a spinout plan of arrangement of the company's assets, will require various approvals, including those of the company's board of directors, shareholders and the TSX Venture Exchange, and, with respect to a plan of arrangement, court approval, and none of these approvals have been sought at present.

The hemp industry in the Philippines

The Philippines has optimal growing conditions for industrial hemp, which would allow for up to three hemp crop cycles a year, as opposed to only one or two cycles within Canada and other similar environments. Additionally, the proximity of the Philippines to Asian markets is attractive to the company and its growth plans. Though the company will conduct further analysis, there does not appear at present to be restrictions on processing hemp in the Philippines, nor clear regulation standards or restrictions on industrial hemp farming in the Philippines. If the company proceeds with a hemp project in the Philippines, it will be required to comply with all local regulations, and there can be no assurance or guarantee that the company will be able to do so.

The global hemp market

Hemp is one of the earliest domesticated plants known. It has been cultivated by many civilizations for over 12,000 years, and currently over 30 countries are producing industrial hemp. Global hemp production increased from 250 million pounds in 1999 to more than 380 million pounds in 2011. In 2013 alone, the U.S. retail hemp market was valued at $581-million, with sales in U.S. conventional retailers growing by 26.5 per cent. There are currently over 50,000 different applications that hemp is used for on the market today, including industrial textiles, consumer textiles, paper, building materials, foods, industrial products and personal hygiene, to name a few. Even various car manufacturers are integrating hemp into their vehicles including Audi, BMW, Ford, GM, Chrysler, Honda, Mercedes, Mitsubishi, Porsche and Volkswagen. For example, the Mercedes C-Class contains up to 20 kilograms in each car. With increased social acceptance of industrial hemp, these numbers will only continue to grow. For more information, visit the company's website.

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