Mr. John Fowler reports

SUPREME CLOSES $3.6 MILLION PRIVATE PLACEMENT

Supreme Pharmaceuticals Inc. has closed the first tranche of a non-brokered private placement for gross proceeds of $3,615,880. Upon closing, the company issued 9,039,700 units at a price of 40 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for one common share at a price of 50 cents for a period of three years from closing.

The common shares and warrants issued pursuant to the financing are subject to a hold period that expires Oct. 21, 2016. The company paid aggregate finders' fees of $100,280 and issued 250,700 warrants to certain participating dealers in connection with the financing.

The company will use net proceeds of the financing for expansion of the company's Kincardine facility and for general working capital purposes. John Fowler, chief executive officer of Supreme, stated: "One month ago, we secured supply agreements with five Canadian medical marijuana licensed producers for substantially all of the expected output of phase 0 of our seven-acre hybrid greenhouse. Given the strong demand, we will begin phase 1 expansion of an additional 80,000 square feet of hybrid greenhouse area. The completion of phase 1 is projected to increase total production capacity to over 10,000 kilograms per year, subject to regulatory approval."

The company may complete a second tranche of the financing, which may be extended to existing shareholders of the company in accordance with the provisions of the Canadian existing shareholder exemption, as well as to other investors pursuant to other available exemptions. The existing shareholder exemption is available to shareholders residing in all Canadian provinces, other than Newfoundland and Labrador. Shareholders of record of the company as of June 20, 2016, are eligible to participate under the existing shareholder exemption. Any person who becomes a shareholder of the company after the record date is not permitted to participate in the financing using the existing shareholder exemption, but other exemptions may still be available to them. Shareholders who become shareholders after the record date should consult their professional advisers when completing their subscription form to ensure that they use the correct exemption.

We seek Safe Harbor.