Mr. Dennis Petke reports

ALLIANCE TO RETAIN CALIFORNIA COUNSEL TO ASSIST WITH CITY OF LONG BEACH PARTNERSHIP VENTURE

Alliance Growers Corp. will be retaining California legal counsel as representation for the company's Long Beach partnership venture. The attorney Alliance will be working with was the attorney for one of the top real estate firms in California for 30 years with extensive experience in commercial real estate transactions including the permitting of subdivisions. The attorney also has considerable experience with corporate structuring including a real estate investment trust that now has over $1.3-billion in assets. He handled hundreds of marijuana cases in California many years ago before the laws began to change in the cannabis industry.

As previously announced in a news release on July 27, 2017, Alliance Growers is in negotiations with a private company for an equity partnership for a licensed cultivation facility in the city of Long Beach. The partnership will be for 100 per cent ownership in a 6,000-square-foot licensed medical marijuana cultivation building and 50-per-cent-or-higher ownership of the cultivation business.

The intention would then be to add a manufacturing licence which would add an additional valuable revenue stream to the business. This would provide full ownership of the building and two revenue streams while leaving the running of the day-to-day business to the private company team. Alliance also expects to provide tissue-cultured plantlets to the facility and potentially other facilities in California via an in-house lab arrangement. Dennis Petke, Alliance Growers' president and chief executive officer, commented on the proposed partnership: "California is on the verge of creating a legal market for marijuana worth more than $5-billion and Alliance Growers intends to benefit from it to add further value for all our stakeholders. To ensure Alliance is compliant with all regulations pertaining to cross-border transactions in the cannabis space, we are retaining California legal counsel. We are anxious to move forward with this tremendous opportunity in the heart of the marijuana-friendly state of California in the city of Long Beach. This opportunity is very much in line with both the mandates of our financing partners and Alliance Growers' strategy to position the company for where the global cannabis market is going. We look forward to sharing significant additional financing and business implementation updates with investors as we progress."

About the California cannabis market

California is the sixth largest economy in the world and is the largest and most influential state in the cannabis industry in terms of production, consumption and cultural influence. The legalization of adult use in California has already started to show that it has far-reaching effects, both within the state and nationally. New Frontier, the cannabis big data and analytics authority, in partnership with Arcview Market Research, the leading publisher of cannabis market research, have released their 2016 California legal cannabis market state profile, which shows the potential growth of the adult use market. The report finds that over the next four years, annual legal cannabis sales will grow at a compound annual growth rate of 23.1 per cent, from $2.8-billion in 2016 to an estimated $6.5-billion by 2020.

About Alliance Growers Corp.

Alliance Growers is a diversified cannabis company driven by the company's four-pillar organization plan -- Cannabis Botany Centre, strategic ACMPR investments, CBD oil supply and distribution, and research and development. Alliance Growers has executed an agreement with Botanical Research In Motion International Inc., for a Canada-exclusive licence to jointly develop and operate a 40,000-square-foot facility to be the first of its kind in Western Canada to house a DNA botany lab, extraction facility and tissue culture plantlet production facility to service the cannabis market and agriculture market in general. The proposed Cannabis Botany Centre will grow cannabis plantlets using proprietary tissue-culture propagation, specifically the Chibafreen invitro plant production system, which assures consistent composition and purity of each plantlet for the growers. Further, Alliance Growers has been negotiating to obtain other exclusive Canadian distribution agreements for certain proprietary products for support of the cannabis growing industry in addition to possible partnerships with licenced producer applicants at various stages in the Health Canada licence process.

We seek Safe Harbor.