Mr. William Gildea reports

ARCTURUS ANNOUNCES $500,000 PRIVATE PLACEMENT

Arcturus Growthstar Technologies Inc. is in the process of arranging a non-brokered private placement to sell up to two million units at a price of 25 cents per unit for gross proceeds of up to $500,000. Each unit consists of one common share and one-half share purchase warrant. Each half warrant will entitle the holder to purchase one additional common share at an exercise price 35 cents per share. The warrants are exercisable for a period of 12 months from date of issuance, however, this period may be accelerated if the company's share price is above 45 cents for 10 consecutive days.

The units are to be distributed to shareholders in accordance with applicable securities laws and Canadian Securities Exchange policies.

Directors and officers of Arcturus will participate in the private placement and the closing is expected to occur on or about Dec. 23, 2016. The units will be subject to a four-month-plus-one-day hold period from the date of closing of the private placement in accordance with applicable securities laws. The company will pay to the finder: (i) a cash fee at the closing that is equal to 8 per cent of the gross proceeds received by the company from the sale of units, from investors sourced by the finder; and (ii) issue finders' warrants exercisable for units equal in number to 8 per cent of the total number of all of the units, from investors sourced by the finder.

Closing of this private placement may be subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the CSE.

The net proceeds from the offering will be used for general working capital purposes. As previously announced, CBO Financial Inc. will assist the company with financing certain qualified vertical farming projects with a combination of new market tax credits (NMTC) and debt. The NMTC program is a $65-billion federal program designed to incentivize private investment in low-income communities. NMTCs are provided to financial institutions in exchange for equity investments that eligible businesses can use to subsidize project development costs.

CBO helps driven organizations, such as Arcturus, to finance facilities that will provide goods and services that benefit populations in need and revitalize communities.

We seek Safe Harbor.