Mr. Marc Lustig reports

CANNAROYALTY LAUNCHES THE TERPISTRY IN COLLABORATION WITH DR. JORG BOHLMANN

CannaRoyalty Corp. has launched The Terpistry in collaboration with Dr. Jorg Bohlmann, a world-recognized leader in terpene profiling. Dr. Bohlmann brings extensive expertise in terpenoids, terpene syntheses, terpenoids-cannabinoids relationship and formulation. The Terpistry, a wholly owned venture of CannaRoyalty, will focus on the development and sale of cannabis products with innovative terpene formulations.

Terpenes are a diverse class of aromatic organic molecules produced by a variety of plants. These compounds are responsible for giving many common foods their characteristic tastes and smells. Limonene, for example, gives lemons and oranges their characteristic citrus scent. A wide variety of terpene molecules are also naturally produced in cannabis. Dr. Bohlmann, in collaboration with Dr. Jonathan Page, an adjunct professor in the botany department at UBC who co-founded the leading cannabis testing and biotechnology company in Canada, Anandia Labs (an investee company of CannaRoyalty), recently published a peer-reviewed paper outlining the results of their recent research. The research identified almost 30 genes involved in the synthesis of terpenes in cannabis. Their paper notes that "differences between the pharmaceutical properties of different cannabis strains have been attributed to interactions (or an 'entourage effect') between cannabinoids and terpenes." Suggested applications for these effects include treatment for sleep, stress response, immune function, anxiety and inflammation.

"The Terpistry's mission is to investigate naturally occurring cannabis terpene profiles to develop proprietary synthetic terpene formulations. The plethora of naturally occurring terpenes and their potential to complement and enhance cannabis through the entourage effect provides a revolutionary platform to develop a next-generation level of cannabis-extract-based products, more refined and targeted than ever before," said CannaRoyalty chief executive officer Marc Lustig. "Backed by the scientific expertise of Dr. Bohlmann, we hope to be at the forefront of the high-growth cannabis product subsectors of the rapidly expanding global cannabis market."

"This collaboration underscores both my and CannaRoyalty's dedication to taking a scientific-based approach to develop the most advanced and refined cannabis-extract-based products," said Dr. Bohlmann. "The launch of The Terpistry will further advance the exploration of terpenes, enabling us to unlock their true potential. With their inherent positive impact on cannabis, the applications for development are limitless."

CannaRoyalty expects the first product launch of The Terpistry to occur in the second half of 2017 with a branded line of extracts powering premium vaporizer devices produced by its subsidiary, DreamCatcher Labs. Dr. Bohlmann has been retained as a consultant and his compensation will include equity compensation in the form of CannaRoyalty restricted share units.

About CannaRoyalty Corp.

CannaRoyalty is a fully integrated, active investor and operator in the legal cannabis sector. The company's focus is to build and support a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research and intellectual property, consumer brands, and industry infrastructure. The company's management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt and licensing agreements.

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