Mr. Garry Stewart reports

CANABO MEDICAL CASH FLOW POSITIVE FOR FOURTH QUARTER

Management has determined Canabo Medical Inc. is cash flow positive for the fourth quarter ended Oct. 31, 2017, and anticipates a continued positive outlook for the first quarter of fiscal 2018.

The fourth quarter caps off a strong year of patient growth with:

• Canabo physicians seeing more than 3,900 new patients in the fourth quarter;
• Canabo clinics handling over 9,800 new and recheck patients during the fourth quarter, a 95-per-cent increase over the same period last year;
• Canabo operating clinics in 19 separate clinic locations across Canada;
• More than 96 per cent of new Canabo patients registering with the company's research partners;
• More than 80 physicians trained under Canabo proprietary training program for prescribing medical cannabis and another 60 physicians waiting to join the company's team.

John Philpott, Canabo's chief executive officer, commented: "We are pleased with the growth in physician and patient numbers and the continued support from our cannabinoid research partners. We have worked hard to establish a national clinic footprint, educating physicians and patients on the use and potential benefits of medical cannabis."

About Canabo Medical Inc.

Canabo wholly owns and operates Cannabinoid Medical Clinics, or CMClinics, Canada's largest physician led referral-only clinics for medical cannabis. Established in 2014, Canabo now has 19 clinics across Canada, with additional locations planned to open in 2017. Canabo operates referral-only medical clinics dedicated to evaluating the suitability of prescribing and monitoring cannabinoid treatments for patients suffering from chronic pain and disabling illnesses. Clinics operated by Canabo are staffed by physicians and qualified health care practitioners specifically trained to assess patient suitability for cannabinoid treatment, recommend treatment regimes and monitor treatment progress.

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