Mr. John McMullen reports

LGC CAPITAL'S LEADING AUSTRALIAN MEDICAL CANNABIS LP PARTNER, LITTLE GREEN PHARMA, COMMENCES COMMERCIAL SALES TO PATIENTS, HAS ITS PRODUCTS ACCEPTED FOR MAJOR CLINICAL TRIALS, COMMENCES NEGOTIATIONS TO EXPORT TO GERMANY AND ANNOUNCES PLANS FOR A NEW 500,000 SQUARE FOOT SITE

Australian medical cannabis company Little Green Pharma (LGP), in which LGC Capital Ltd. has a 14.21-per-cent interest, has successfully completed harvest of its second commercial medical cannabis crop from its facility south of Perth in Western Australia.

This quarter, LGP successfully achieved another milestone having produced Australia's first locally grown medicinal cannabis product as well as making its first commercial sales to Australian patients.

LGP has also commenced negotiations with German parties for exporting Australian products. LGP sees potential exports to Germany as being a crucial building block for the business going forward and plans to finalize negotiations within the month, which will be a catalyst for the expansion plan.

Clinical trials

Last week, LGP's products were accepted into the NSW state-wide clinical trial for advanced cancer. This is another major tick of approval for LGP products and will enable LGP to directly compare its products' efficacy with a range of other imported products.

Expansion plans

LGP is currently in negotiations to build a purpose-built facility in Perth. Preliminary terms have earmarked a 500,000-square-foot block enabling the construction of a 400,000-square-foot facility. A facility of this size would provide for up to 50,000 kilograms of flower per annum. The proposed site will include a GMP (good manufacturing practice) facility and can be built in a staged approach, with a first stage of 100,000 square feet being planned. Although the primary focus is Australian patients, the export market has been accounted for in this proposed build.

Fleta Solomon, Little Green Pharma's managing director, commented: "The proposed site will include a GMP manufacturing facility and can be built in a staged approach, with a first stage of 100,000 square feet being planned. Although the primary focus is Australian patients, the export market has been accounted for in this proposed build."

John McMullen, LGC's chief executive officer, commented: "Our partner in Australia has achieved a great deal in a short time frame in a highly regulated environment. We are particularly pleased that Little Green Pharma has started suppling Australian patients with premium-grade medical cannabis and are now involved in cancer trials."

About Little Green Pharma and the Australian Medical Cannabis Sector

LGP is the first Australian company to locally grow and produce medicinal cannabis products for sale to Australian patients.

LGP is making high-quality and reliable medicinal cannabis products available to Australians. The medicines are cultivated, without pesticides, in a hydroponic facility in Western Australia's southwest region and processed in a manufacturing facility near Perth.

LGP products have been subject to extensive assessment and testing based on the Australian TGA regulation, before being distributed under Australia's tightly controlled medical prescription system.

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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