Mr. John McMullen reports

LGC CAPITAL ANNOUNCES CONSTRUCTION WORKS HAVE FORMALLY BEGUN AT TRICHO-MED'S FIRST 34,000 SQUARE FEET MEDICAL CANNABIS FACILITY IN BROWNSBURG, QUEBEC

Demolition has begun at the Brownsburg, Que., site of LGC Capital Ltd.'s investee, Tricho-Med, to clear the way for construction of its initial 34,000-square-foot, state-of-the-art, multilevel indoor growing facility for medical cannabis.

Management from both LGC and Tricho-Med were present to witness the initial work, as well as to walk the additional acreage for expansion.

As previously announced on April 9, the initial phase 1 facility of 34,000 square feet will comprise seven airtight controlled-atmosphere flowering chambers. The facility has been designed to ensure it qualifies as a GMP (good manufacturing practices) facility. Tricho-Med plans to have the steel structure and building envelope completed by the end of October this year. Tricho-Med also plans to increase the scale of its operations, with new land options now signed, to over two million square feet of gross building area (power availability permitting) of controlled-atmosphere production capacity.

Tricho-Med is still on track, as per LGC Capital's news release of March 28 this year, for its Health Canada inspection by the fall of this year. Tricho-Med expects to run its two trial harvests as soon as phase 1 construction is complete, which is a condition to being granted a production licence. Tricho-Med is planning to be fully licensed and commercially growing in 2019 from phase 1, with production increasing progressively as the facilities expand.

Tricho-Med plans to be one of the largest and lowest-cost producers of high-quality medical cannabis in Quebec.

Tricho-Med has retained the services of highly experienced growers and regulatory experts to assist with the permitting and approval processes necessary to commercially produce and sell cannabis in Canada and obtain the necessary GMP certification in order to export internationally.

John McMullen, chief executive officer of LGC Capital, stated: "Being at the site at the end of last week to witness the machines starting their work, clearly confirms to me the potential huge size, scope and scale of this exciting project and the bright future ahead for Tricho-Med as their roll-out plans evolve. Once completed, this project will provide our shareholders with ownership in a state-of-the-art facility that is designed to be best-in-class. I personally am proud to know that this project will create many new jobs in the Brownsburg area and in the province of Quebec generally. To invest in and support the Tricho-Med project gives me great confidence in our combined futures."

LGC entered into a four-year secured convertible loan agreement with Tricho-Med in the amount of $4-million, which is being disbursed in accordance with preagreed milestones and related disbursement schedules. Interest on the loan is fixed at an annual rate of 10 per cent, which will be payable from available operational cash flow. Upon Tricho-Med obtaining a licence to produce medical cannabis from the relevant regulatory authorities, the loan will convert into common shares of Tricho-Med, representing 49 per cent of then-issued and outstanding shares. LGC will also receive a 5-per-cent royalty on Tricho-Med's net sales.

LGC Capital is also pleased to announce that it has retained the services of Vertex Strategies Inc. for its investor relations services. Ms. Thaya has extensive knowledge and IR experience in the medical cannabis sector in Canada, having previously worked with another successful Quebec-based medical cannabis licensed producer. LGC Capital welcomes her to the LGC team and looks forward to increasing industry and market interest in LGC's rapidly growing portfolio of investments.

Effective April, 2018, Vertex will provide marketing and investor relations services to the company at the initial base rate of $7,500 per month. Vertex has also been granted options to purchase 500,000 common shares in LGC at an exercise price of 15 cents. The options will vest over 18 months. Vertex and its principals will act at arm's length to LGC and currently have no direct or indirect interest in the securities of LGC, or any right or intent to acquire such an interest, with the exception of the above options. The Vertex agreement and grant of the options are subject to the approval of the TSX Venture Exchange.

About LGC Capital Ltd.

LGC Capital's objective is to become a diversified business group with core business divisions which provide shareholders with exposure to a diverse range of businesses, products and services, with an emphasis on significant investments in global medical cannabis sector.

We seek Safe Harbor.