Mr. Marc Wayne reports

FINANCIAL AND OPERATIONAL HIGHLIGHTS FROM BEDROCAN'S SECOND QUARTER RESULTS

Bedrocan Cannabis Corp. is highlighting some financial and operational metrics related to its second quarter financial results for the period ending June 30, 2014, which were released Aug. 20, 2014, on SEDAR.

Highlights:

• Revenues of medicinal cannabis to authorized patients in Canada were $370,000 for the second quarter ended June 30, 2014, and $460,000 for the six-month period ended June 30, 2014.
• Gross profit was $120,000 for Q2 2014 and $160,000 for the six-month period ended June 30, 2014. The results reflect Bedrocan's initial strategy of importing and selling medical cannabis in Canada produced by its exclusive licence partner and shareholder, Bedrocan Beheer BV, until Bedrocan can begin producing medicinal cannabis domestically. Cash and cash equivalents for Q2 2014 were reported at $14.36-million, with working capital of $13.52-million.
• Product inventories for Q2 2014 were reported at $270,000, representing approximately three months inventory of medical cannabis varieties sold in Canada.

"Our Q2 2014 financial results indicate a strong and stable positioning for Bedrocan as we transition towards domestic production of our medical-grade cannabis," stated Marc Wayne, chief executive officer of Bedrocan Cannabis. "Having sold a steady and uninterrupted supply of our products since Feb. 21, 2014, combined with our healthy cash balance and working capital position, we are well capitalized to execute on our current growth plan."

Outlook

Bedrocan has implemented a two-pronged approach to the development of its business operations in Canada. Currently, the company is importing, repackaging and distributing its medical cannabis in Canada, received under its exclusive licensing arrangement with its Netherlands-based partner and shareholder, Bedrocan BV. These activities are being carried out in Bedrocan's existing 3,500-square-foot distribution and patient call centre, located in the Greater Toronto Area.

Concurrently, Bedrocan is building up its patient and health care practitioner database while it ships its existing medical-grade cannabis varieties, thereby positioning the company to better leverage into the next phase of its business development strategy.

For the second phase of its strategy, Bedrocan will be scaling up its domestic operations through the design and construction of a state-of-the-art 52,000-square-foot production facility, with an annual production capacity of 4,000 kilograms, expected to be completed in December, 2014. Bedrocan BV has been managing the design and now overseeing construction of the production facility, leveraging its expertise, and a 13-year successful record of medicinal-grade cannabis production and inventory management.

We seek Safe Harbor.