Mr. Michael Martinz reports

ANEXCO RESOURCES RESUMES TRADING ON THE CSE, AND ANNOUNCES A FUNDAMENTAL CHANGE OF BUSINESS TO THE CANNABIS SECTOR

The Canadian Securities Exchange has approved Anexco Resources Ltd.'s conditional listing statement dated Oct. 27, 2014, regarding a fundamental change from natural resources to the cannabis sector. The company has received shareholder approval to the listing statement. Concurrent with these approvals, the company's shares have recommenced trading on the CSE.

The company has also closed the first tranche of the non-brokered private placement announced on Aug. 28, 2014, by the issue of 607,889 units at 18 cents per unit for proceeds of $109,420. Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant is convertible into one common share at a price of 36 cents per share and is exercisable for a period of one year from the date of closing. Shares issued pursuant to the private placement will be subject to a holder period expiring March 1, 2015.

The company has also received $46,500 from the exercise of warrants for total combined proceeds of $155,920. The proceeds of the private placement will be used for general working capital and to finance the BioCanna ADM kiosk project announced in a news release filed with SEDAR on Aug. 21, 2014.

Cannabis sector and corporate update

The North American cannabis market continues to provide positive economic results, as supported by a recent report by ArcView Group Market Research, a San Francisco-based cannabis investment research firm. ArcView forecasts a 64-per-cent surge in the legal U.S. cannabis market to $2.34-billion from initial estimates of $1.53-billion by year-end 2014. Furthermore, ArcView's research indicates that the five-year U.S. national marijuana market could grow to $10.2-billion.

Anexco's wholly owned subsidiary, Kaneh Bosm BioTechnology, has made significant progress with its business development objectives during the halt trade period. Three business units have been developed as a means to create multiple pathways for revenue generation. An update on the progress of those business units follows.

BioCanna ADM

"Interest in our BioCanna ADM to date has been very favourable," stated Michael Martinz, president of Anexco Resources. "In conjunction with state or regional distributors, Kaneh Bosm seeks to lease the kiosk units to retailers for around $1,500 per month, plus software licensing and servicing fees. Hypothetically, with 1,000 kiosks in service, our gross monthly revenues would exceed $1.5-million.

"Furthermore, the value proposition to retailers is strong the as potential revenue metrics are very solid. If a kiosk sells just one pound of cannabis per day, that will generate about $1.6-million a year in sales at $10 per gram," stated Mr. Martinz.

The BioCanna ADM retail system is European based, designed and manufactured. Presently, the manufacturer has more than 2,000 kiosks operating across Europe in the retail pharmaceutical dispensing marketplace. They are proven to be reliable and profitable.

Kaneh Bosm expects delivery of the first prototype units for demonstration and field testing in the middle of November.

Parties interested in exploring distribution opportunities should contact Kaneh Bosm at 604-782-4191.

Kaneh Bosm/Penticton Indian Band joint venture

On Sept. 23, 2014, Kaneh Bosm announced that it signed a letter of intent (LOI) with the Penticton Indian Band (PIB) in British Columbia, Canada, for the development of a joint venture partnership to pursue a licensed producer (LP) designation under Health Canada's medical marijuana production regulations (MMPR). Kaneh Bosm and PIB, via the joint venture, have planned a three-phase approach to this production facility:

1. Construction of a 12,000-square-foot indoor medical cannabis facility;
2. Construction of the first-phase greenhouse, comprising one vegetative and two flowering bays totalling 48,000 square feet;
3. Completion of the greenhouse with two more flowering bays totalling 100,000 square feet of production space in a state-of-the-art greenhouse.

Community support for this proposed project amongst PIB members has been overwhelmingly positive, according to Elaine Alec, Kaneh Bosm's first nations liaison. Band members are very supportive of the social, economic and medical benefits this project may provide. The next milestone for this project is a band member referendum whether to formally accept or reject the terms of the letter of intent.

"The joint venture agreement will be structured according to the financial and equity contributions of both parties. PIB will contribute a 23-acre parcel to the joint venture," stated Mr. Martinz. "There is already a large water reservoir on the site containing local groundwater, which is nearly perfect in terms of pH and mineral content. There is also three-phase power about 200 metres from the site, and we're going to ask PIB to bring power to the production facility as part of their contribution.

"Once the completed 100,000-square-foot greenhouse facility is in production, we anticipate generating approximately seven tonnes of cannabis per year from four crops," stated Mr. Martinz. "Our cost of production should be right around $1 a gram, which is very low, primarily due to the reduction in power consumption utilizing the sun's photosynthetic power."

Kaneh Bosm EPC (engineering, procurement and construction)

Management continues to explore opportunities within the cannabis production facility construction sector.

The company has scheduled a change of its name to Kaneh Bosm BioTechnology Inc. on Nov. 4, 2014. A further news release will be issued at that time.

We seek Safe Harbor.