Mr. Stuart Gray reports

CUSTOM HEMP PROTEIN BLEND CREATED BY NATURALLY SPLENDID RECEIVES APPROVAL FROM HEALTH CANADA

Naturally Splendid Enterprises Ltd.'s custom-formulated, tropical-flavoured hemp protein blend created for Laguna Blends has received approval from Health Canada. This hemp protein blend marketed by Laguna Blends under the trade name PRO369 Tropical Powder, was granted a product licence along with a natural product number by the Minister of Health on Sept. 22, 2015.

In order to obtain authorization to legally sell as a natural health product in Canada, a product licence application must be submitted to Health Canada. To obtain a licence to sell a natural health product, applicants must give detailed information about the product to Health Canada, including: medicinal ingredients, source material, dosages, potency, non-medicinal ingredients and recommended use(s).

The safety and efficacy of natural health products and their health claims must be supported by in-depth, scientific evidence so that consumers and Health Canada know the products are indeed safe and effective, and to ensure benefits outweigh risks. Once Health Canada has assessed a product and deemed it to be safe, effective and of high quality, it will then issue a product licence along with an eight-digit natural product number (NPN).

This is a great step forward for us at Laguna," reported Stuart Gray, chief executive officer of Laguna Blends. "Having our first approved product by Health Canada gives us the confidence and knowledge to go out and pursue additional products with Naturally Splendid. I'm excited to see how well this product sells through our distribution network of affiliate distributors in the United States and Canada."

On April 8, 2015, Naturally Splendid announced the signing of a definitive development and manufacturing agreement with Laguna Blends, which then placed an initial purchase order of $100,000.00 for HempOmega infused hemp protein formulations.

Stuart Gray, president, CEO and director of Laguna Blends, stated: "We would like to thank Naturally Splendid for the research and development of the initial products. Our market research indicates a strong pull for high-quality, plant-based omega and protein products. In this area, Naturally Splendid has proven to us that they are leaders in the industry."

Laguna anticipates ordering a further $1.5-million of the HempOmega infused protein products in the first year of the agreement and $4.5-million of the HempOmega infused hemp protein products in the second year of the agreement.

Naturally Splendid CEO Craig Goodwin stated: "We believe the success we have had with Laguna Blends will attract additional clients interested in utilizing our technologies and ingredients in a wide range of applications. Our technologies and ingredients are applicable to a wide range of markets, including human, pet and livestock." Products developed can be for oral consumption or as topicals. Naturally Splendid retains all of its rights to HempOmega and will continue to cultivate additional clients for this ingredient."

Recently, Naturally Splendid attended the Canadian Health Food Association (CHFA) Expo East on Sept. 19 to Sept. 20, where the Natera hemp retail line, as well as the full range of bio-active, plant-based ingredients offered by Naturally Splendid's wholly owned division, BC Ingredients, was featured.

Naturally Splendid vice-president of operations Bryan Carson reported: "We experienced significant interest in both the Natera retail line and our plant-based ingredient offerings through BC Ingredients while participating at the CHFA Expo East trade show. In fact, since our successful product development for Laguna Blends incorporating our HempOmega, we have seen an influx of inquiries. This positive response was further reinforced with the reception of our technologies and ingredient offerings at the CHFA Expo East. We look forward to securing additional clients to develop custom formulations using our patented omega technologies and premium plant-based ingredients."

We seek Safe Harbor.