Mr. John McMullen reports

LGC CAPITAL RECEIVES FINAL APPROVAL BULLETIN FROM THE TSX VENTURE EXCHANGE FOR ITS INVESTMENT IN GLOBAL CANNA LABS

LGC Capital Ltd. received the final approval bulletin from the TSX Venture Exchange in respect of LGC's investment into Global Canna Labs Ltd. (GCL) in Jamaica, which closed on Aug. 30, 2018. As previously announced, LGC subscribed for a $2.5-million secured debenture, convertible into an initial 30-per-cent strategic interest in GCL and also acquired a 5-per-cent royalty on GCL's net sales for $2-million, payable by way of 15,854,141 shares of LGC. The transaction is now fully completed.

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

GCL is on track to have 220,000 square feet planted by the end of October, 2018, from its Montego Bay site. 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). GCL plans to expand its greenhouse portion to 58,000 square feet by the end of 2018.

The first cycle of a continuous harvest program is anticipated to start in early November, 2018.

As previously announced, the 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.

GCL is one of the very few Tier 3 licences in Jamaica (licensed to cultivate and produce over five acres), and, as such, GCL plans to expand over 300 acres of new land that has been arranged to add to the portfolio by the end of the year.

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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