Mr. Michael DeGiglio of Village Farms reports

EMERALD HEALTH THERAPEUTICS' CANNABIS JOINT VENTURE PURE SUNFARMS RECEIVES SALES LICENSE FROM HEALTH CANADA FOR 1.1 MILLION SQUARE FOOT GREENHOUSE

Village Farms International Inc. and Emerald Health Therapeutics Inc.'s 50/50 joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has received its cannabis sales licence from Health Canada. Pure Sunfarms is now permitted to immediately begin selling product from its expanding inventory of high-quality dried cannabis, including to Emerald Health Therapeutics, under their previously announced supply agreement, as well as to address significant demand from other licensed producers. This sales licence also positions Pure Sunfarms to secure supply agreements with provincial government distributors for the imminent legal adult-use marketplace.

"Pure Sunfarms continues to achieve its milestones on or ahead of schedule, and has transformed the Delta 3 facility from growing and selling tomatoes to growing and selling cannabis in just seven months," said Michael DeGiglio, chief executive officer, Village Farms. "Pure Sunfarms' near-term objective is to maximize the profitability of its expanding production capacity during what is expected to be an initial period of short supply when adult cannabis use becomes legal in Canada on Oct. 17, 2018. Pure Sunfarms will become a vertically integrated supplier and, with this sales licence in place, will aggressively move forward with its product development and branding strategies."

"Pure Sunfarms is moving at remarkable speed to become a significant cannabis supplier and, with our high operational quality standards, we achieved a very rapid turnaround on this licence. We greatly appreciate Health Canada's timely responses to all of our submissions," said Chris Wagner, CEO, Emerald Health Therapeutics. "With access to established wholesale and provincial agreements and the prospect of similar additional agreements in the near term, Pure Sunfarms is well prepared for a rapid sales ramp-up in the coming quarters. This will drive value for both Village Farms and Emerald, as joint venture partners."

Pure Sunfarms initiated commercial-scale cannabis production in May of this year and is currently utilizing 225,000 square feet of its 1.1-million-square-foot Delta 3 greenhouse facility in Delta, B.C., with the expectation that the full 1.1 million square feet will be converted for cannabis production by the end of 2018, on schedule and on budget. Upon completion of the conversion, Pure Sunfarms' Delta 3 facility will be one of the single largest cannabis growing facilities in the world.

About Village Farms International Inc.

Village Farms International is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada. With more than 750 years of accumulated master grower experience coupled with advanced proprietary technology and environmentally sustainable growing practices, Village Farms is highly resource efficient. Village Farms produces and distributes fresh, premium-quality produce with consistency 365 days a year to national grocers in the United States and Canada from its large-scale controlled environment agriculture (CEA) greenhouses in British Columbia and Texas, as well as from its partner greenhouses in British Columbia, Ontario and Mexico.

About Emerald Health Therapeutics Inc.

Emerald Health Therapeutics is a licensed producer under Canada's Access to Cannabis for Medical Purposes Regulations and produces and sells dried cannabis and cannabis oil for medical purposes. Emerald is preparing to serve the fully legalized Canadian adult-use cannabis market starting Oct. 17, 2018. Emerald owns 50 per cent of Pure Sunfarms, which is converting a licensed existing 1.1-million-square-foot (25 acres) greenhouse in Delta, B.C., and is in commercial production. It also wholly owns Agro-Biotech, a Montreal-based licensed cannabis grower with a 75,000-square-foot indoor facility and is planning to add a 500,000-square-foot wholly owned greenhouse in Metro Vancouver.

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