Mr. Stuart Gray reports

LAGUNA ANNOUNCES DEPLOYMENT OF A EUROPEAN DISTRIBUTION STRATEGY FOR CARLSBAD CBD WATER AND CANNACEUTICALS CBD SKIN CARE PRODUCTS

Laguna Blends Inc. has released its European sales, marketing and distribution strategy to penetrate the European market. Laguna intends to enter the multibillion-dollar bottled water and skin care market in Europe by joint venture and/or licensing opportunities.

Laguna is working with a German-based consulting group that are connected to some of Europe's largest retail chains and home shopping networks.

Laguna intends Germany to be the first market in which it will launch its cannabidiol (CBD) products and then plans to subsequently expand into the rest of Europe. CBD is legal in Germany and this provides Laguna with an incredible market opportunity. Germany has a population of 80.6 million people.

Laguna has the exclusive distribution rights for Germany for both Carlsbad CBD water and CannaCeuticals CBD skin care products.

Troy Nihart, chief operating officer of Carlsbad Naturals, said: "We have established a strategic alignment between Laguna Blends and Carlsbad Naturals. Laguna is connected into the European marketplace where the demand for CBD products is very bullish. We have an opportunity to be a dominant player in the specialty bottled water industry in Europe. This partnership between companies opens up the gateway for enormous opportunity in our planned European expansion."

Stuart Gray, Laguna's chief executive officer, said: "With the growing awareness and market demand of CBD worldwide, Laguna is positioning itself to be a market leader in the sale of CBD bottled water and Cannaceuticals, CBD skin care products. Laguna can penetrate the European market with our established relationships in the country. Germany has one of the world's top business environments and we look forward to the opportunities that are currently presenting themselves."

Ray Grimm, Laguna's president, stated: "This partnership along with our German contacts, will give us an extremely strong foothold into Europe. Obviously, when you receive a 100-per-cent improvement with a skin care product you have a home run product with the proven science and clinical data to back that up." Mr. Grimm went on to say: "The team of doctors that formulated the Carlsbad CBD water did so with the sole purpose of creating a high alkaline water offering the benefits of CBD. Many believe this to be the next evolution in the water industry, providing unique health benefits due to the proprietary nanotechnology. Carlsbad CBD water provides antioxidants at the cellular level along with providing cellular hydration and energy."

The consultants will produce and distribute all the necessary marketing-related materials and negotiate wholesale, licensing and or joint venture business opportunities with retail and home shopping networks on behalf of Laguna. Laguna has paid $228,000 in consulting and marketing fees in shares at a deemed price of 38 cents per share.

CannaCeuticals skin care products are a Swiss heritage brand utilizing cosmeceutical-grade cannabidiol (CBD) for its line of revolutionary products. In a recent study of Canna's CBD face serum, test subjects reported an unprecedented 100-per-cent overall improvement to the appearance of skin within two weeks. Additionally, more than 80 per cent of test subjects said they would purchase the Canna serum product if it was available for purchase.

Laguna recently announced a letter of intent with Carlsbad Naturals CBD Bottled Water Company to acquire up to 60-per-cent equity interest. The first 19 per cent will be acquired upon successful completion of a definitive agreement with an option to acquire an additional 41 per cent of the company in a transaction valued at $1.8-million (U.S.).

Carlsbad Naturals is a market leader in the distribution and sales of nano-amplified CBD bottled water in the United States. The company has a proprietary process of incorporating CBD into its formulation. Carlsbad Naturals has achieved unaudited U.S. sales in excess of $500,000 (U.S.) in its first year of business as at Aug. 31, 2016.

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