Mr. Dennis Petke reports

ALLIANCE GROWERS UPDATES PROGRESS WITH WFS PHARMAGREEN; TOMMY CHONG ENDORSEMENT AND CANA COMPANION INCLUDED IN POTENTIAL ALLIANCE

Further to its press release of June 30, 2016, Alliance Growers Corp.'s letter of intent with WFS Pharmagreen Inc. on obtaining an exclusive licence for the commercialization of the Chibafreen in vitro plant production system in Canada is progressing much better than expected and has led to additional joint business opportunities to be explored. The exclusive licence from Pharmagreen covers the marketing, distribution and sales of all present and future tissue culture plantlet products utilizing the proprietary Chibafreen in virtro plant production system for the jurisdiction of Canada. Alliance has advanced on its discussions regarding additional joint business interests and opportunities with Pharmagreen, including a potential full merger of Pharmagreen and Alliance Growers, subject to continued extensive due diligence and analysis.

Growing cannabis using tissue culture propagation, specifically the Chibafreen in vitro plant production system, assures consistent composition and purity of each plantlet for the growers, regardless of where and by whom the plants are cultivated. Licensing Pharmagreen's proprietary process provides tremendous advantages including rapid and efficient growth of plants that will result in a 30 per cent to 50 per cent shorter production period. Plantlets that are produced under uniformly controlled environment in the protected area are free from pest insects/pathogens and the disturbance of outside weather. Additionally, such plantlets are of very high quality, disease free and geared for optimal growth. Each plantlet will always have the same genetic makeup as its parent stock.

Commenting on the business development opportunities, Dennis Petke, Alliance Growers' president and chief executive officer, stated: "We could not be more impressed, the more we delve into the breadth and depth of Pharmagreen's innovations, that their technology will give Alliance the ability to generate tremendous cash flow from the burgeoning Cannabis industry, as well as the agriculture industry in general. In addition to the tissue culture plantlet products, we are impressed with the development and rapid growth of Pharmagreen's subsidiary, Canna Companion, and the strong involvement of celebrity Tommy Chong."

While moving toward the execution of a formal licence agreement, both Alliance and Pharmagreen agree to possible further development of a full-spectrum DNA botany lab, which would be the only such lab facility in Western Canada. A unique blend of clean room lab facilities, including a botanical oils extraction lab, would be built under the heading of botany centre. Licensing opportunities for the botany centre for the United Kingdom and European Union are subject to further negotiations and terms.

From a monetary perspective, Pharmagreen's business initiatives are on the cutting edge of functional innovations that not only bear significant profit margins, but also provide a model of micro propagation technology that can be applied across the entire agriculture industry on a mass production scale with Chibafreen in vitro plant production system. To put this in perspective, potential revenue from this system is only limited by the size of the production facility.

We seek Safe Harbor.