Mr. John McMullen reports

LGC CAPITAL'S LEADING JAMAICAN MEDICAL CANNABIS COMPANY, GLOBAL CANNA LABS, TO PLANT 220,000 SQUARE FEET OF "PREMIUM" JAMAICAN CANNABIS OVER THE NEXT 6 WEEKS AND ALSO ANNOUNCES FORMAL JAMAICAN DEAL CLOSING

LGC Capital Ltd. has formally closed in trust its previously announced transformational investment in Jamaican-based medical cannabis licensed producer, Global Canna Labs Ltd. (GCL), and has planned a significantly expanded planting program from previous guidance.

Production forecasts increased at Global Canna Labs

In July, 2018, Global Canna Labs formally received its full approval for a Tier 3 cultivation licence from the Jamaican Cannabis Licensing Agency (CLA). This licence allows Global Canna Labs to cultivate medical cannabis at its 270,000-square-foot facility within its 6.23-acre site in Montego Bay, Jamaica.

Global Canna Labs now plans to have 220,000 square feet planted by the end of October, 2018, from its Montego Bay site, up from the previously advised 28,000 square feet. The premium strains of organic Jamaican cannabis will be grown in a combination of greenhouse (31,000 square feet) and outdoor (189,000 square feet). Global Canna Labs plans to expand its greenhouse portion to 58,000 square feet by the end of 2018 and has already paid for and is in possession of the all the necessary materials for the expansion.

Cultivation is already under way with over 8,000 plants planted for the first production cycle; Global Canna Labs plans to increase this to 16,000 plants planted by the end of November. The first cycle of a continuous harvest program is anticipated to start in early November, 2018.

The existing 220,000 square feet of planted area are expected to yield over 22,000 kilograms equivalent per year of dry cannabis and extracted products, based on actual industry observed yields of 25 grams per square foot per cycle when using the same production methods being adopted by Global Canna Labs.

Global Canna Labs is committed to achieving its GMP (good manufacturing practices) and EU-GMP (European Union good manufacturing practices) certifications in the months to come.

Closing of LGC Capital's investment in Global Canna Labs

Having received conditional approval from the TSX Venture Exchange, LGC has now formally closed its previously announced investment in Global Canna Labs (see press releases dated May 15 and June 21, 2018) by signing the closing documents on Aug. 30, 2018, in Jamaica. Under the terms of the transaction, which has closed in trust pending receipt of the TSX Venture Exchange's final approval, LGC has subscribed for a $2.5-million secured debenture, convertible into an initial 30-per-cent strategic interest in Global Canna Labs, and has also acquired a 5-per-cent royalty on Global Canna Labs' net sales for $2-million, payable by way of 15,854,141 shares of LGC at an issue price of 12.615 cents each, restricted for the statutory four-month-and-one-day period after the issue date. In addition, the corporation will pay a commission in respect of the transaction to an arm's-length finder of $257,500, to be paid $128,750 in cash and $128,750 by way of 1,020,610 shares of LGC. All funds and shares will be held in trust until receipt by the corporation of final approval of the TSX-V. All final documentation requested by the TSX-V is now being submitted, and final approval should be forthcoming. The funds provided by the convertible debenture will go toward expanding the existing cultivation and processing operations of Global Canna Labs.

John McMullen, chief executive officer of LGC Capital, stated: "I am delighted to announce that we have formalized the relationship between LGC and Global Canna Labs with the closing of this transformational investment. I would like to thank all the members of the LGC and GCL teams for making this deal a reality. Jamaican cannabis is a premium cannabis brand and the team at Global Canna Labs' medical cannabis operation that will be an integral partner in the LGC globally integrated portfolio. Jamaica's planned 220,000 square feet of cultivation over the coming weeks will expand LGC's square footage globally to over 450,000 square feet by year-end when Switzerland's 108,000 square feet, Italy's 90,000 square feet and Quebec's 34,000 square feet are added to the equation. This does not include the Little Green Pharma footprint in Australia, which must remain confidential under Australian requirements. We now have a very large growing footprint of actual plants in the ground in five countries, and we are working to increase this further before year-end, subject to completion of other negotiations currently taking place."

Paul Glavine, president of Global Canna Labs, stated: "The formal closing of this investment from LGC Capital represents a significant milestone in our company's history. LGC Capital's global reach makes them the ideal partner for us because of their portfolio of legal global cannabis operations, which will help build our company into a strong Jamaican leader in the medical cannabis arena and also in the wider Caribbean and beyond."

About LGC Capital Ltd.

LGC Capital is a leading investment firm with a focus on the legal global cannabis market. Through its portfolio investment companies, LGC is building a world-leading, vertically integrated system of interconnected legal cannabis companies with cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy and Canada serving domestic and export markets.

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