Mr. Kelly Abbott reports

PARCELPAL ACHIEVES RECORD REVENUE AND ELABORATES ON THE MERITS OF THE TOKEIT PARTNERSHIP

ParcelPal Technology Inc. has provided its Q1 2018 results. ParcelPal has provided the unaudited financial statements for the first quarter ended March 31, 2018, and has filed the statements on SEDAR. The total unaudited gross revenue for the first quarter of fiscal year 2018 is $612,641.

Q1 2018 financial highlights

• Total gross revenue up 64 per cent in Q1 versus the year ended Q4, Dec. 31, 2017;
• Total cash on hand is $1,608,263;
• Gross profits of $193,356, representing a gross profit margin of 32 per cent;
• Raised over $1.6-million in equity financing;
• Subsequent to the Q1 ending, the company received $236,557 from the exercise of 2,427,785 warrants.

President and chief executive officer Kelly Abbott states: "As we scale, revenues are starting to ramp and we are continually evolving our technology and logistics to encompass a wider spectrum of product distribution. Further, the company holds a healthy treasury to execute on our current growth initiatives."

TokeIt Technologies Inc. partnership and partial acquisition discussion

Further to the news release on May 24, 2018, regarding the TokeIt Technologies partnership and partial acquisition, ParcelPal wishes to reiterate what TokeIt is, what the agreement consisted of and the benefits for ParcelPal.

TokeIt is a technology company that operates a business-to-business point-of-sale software specifically designed for the marijuana industry, which focuses on supply chain integrations in dispensaries, distribution centres and licensed producers. The technology directly integrates with both physical storefronts and on-line dispensaries, and processes all financial transactions through the system. TokeIt's ecosystem of technology includes debit and credit payment processing, customer verification, invoicing and purchase order generation, "down to the gram" inventory management, and human resource management capabilities with live track-and-trace store performance metrics.

TokeIt is provincially and federally compliant with current legislation and only partners with complying businesses and dispensaries. The technology itself is robust and services the entire supply chain -- from licensed producer, to distribution, to brick and mortar, and now finally to the consumer. ParcelPal is the last puzzle piece for TokeIt as together they extend their reach from seed-to-last mile.

The transaction consisted of the following value-added benefits for ParcelPal:

• TokeIt currently has approximately 50 signed dispensaries in ParcelPal's delivery zones, which will go live for delivery within the coming months.
• Each dispensary on average has revenues of approximately $250,000 per month, of which all transactions are processed through the TokeIt platform.
• Exclusive North America-wide delivery rights for all TokeIt merchants and clientele.
• Access and rights to all consumer data, totalling over 15,000 users on the platform. These users will be driven onto the ParcelPal platform for marijuana delivery.
• Exclusive use and ownership of all TokeIt's technology (source code) for use in additional verticals (such as grocery, food and alcohol), saving ParcelPal an exorbitant amount of capital to develop.
• This strategic partnership saves ParcelPal capital on sales and implementation staff, business development, research and development, and will greatly lower customer acquisition costs.
• First right of refusal on all financings henceforth.

The agreement consisted of the partnership and partial acquisition of 8 per cent of TokeIt Technologies Inc. for $250,000 at a valuation at $3-million. TokeIt's current valuation is approximately $5-million.

We seek Safe Harbor.