Mr. Chris Bunka reports

LEXARIA FOCUSES ON TECHNOLOGY; SELLS BURLINGTON MMPR LICENSE APPLICATION

Lexaria Corp. has provided the following update related to the Burlington MMPR (Marihuana for Medical Purposes Regulations) licence application.

Lexaria has made significant gains in developing and implementing certain technologies related to the patent-pending methods designed to improve bioavailability of certain molecules, including cannabidiol (CBD) and tetrahydrocannabinol (THC). As recently reported, Lexaria has now included, in its patents pending, applications for lipophilic delivery of nicotine, nonsteroidal anti-inflammatory drugs (NSAIDs) and certain vitamins. The prospective markets for bioavailable edible product formats for these active ingredients are large and require disciplined corporate focus.

As a result, Lexaria management has made the decision to sell its interest in the Health Canada MMPR application located in Burlington, Ont. The Burlington MMPR licence application will continue its application process under new ownership. A potential purchase price of $1.5-million for 100 per cent of the application has been negotiated -- approximately 50 per cent of that due to Lexaria -- with virtually all payments contingent on future progress with the licence application and operation.

Because of the sale of this joint venture project prior to the receipt of an MMPR licence, 500,000 previously issued escrowed and restricted common shares of Lexaria will be returned to Lexaria's treasury and cancelled, as per the joint venture agreement. This will reduce the company's shares outstanding by 500,000.

As is known, progress with this application, along with casual evidence through the media of hundreds of other applications, has been slower than expected. Lexaria has continued to spend inordinate amounts of management time and corporate money, every month, pursuing this licence. Lexaria estimates it will immediately reduce outgoing costs by approximately $20,000 per month, not including executive management time, by no longer pursuing the MMPR application. Lexaria is released from all future cost burdens associated with this licence application, effective May 25, 2015.

In addition, through examination of the industry in Canada and current participants within the sector, it is apparent that rising capital expenditure costs of construction and set-up, and rising continuing costs of compliance with Health Canada regulations, have lessened the attractiveness of the legal marijuana growing market in Canada compared with Lexaria's technological interests.

"Lexaria thanks the hard-working Enertopia management team for their dedication and perseverance in advancing this project and designing what could still be one of Canada's most impressive medical marijuana grow facilities," said Chris Bunka, chief executive officer of Lexaria. "By not directly competing with Canada's already-licensed MMPR growers, Lexaria is also opening the door to more immediately available technology licensing possibilities for THC edibles utilizing our patent-pending lipid infusion technology."

Lexaria can and is now focusing its capital and management time on its pursuit of intellectual property, technology licensing opportunities, and an expanding portfolio of patent-pending applications. The company is intent on introducing an expanding variety of cannabidiol-fortified consumer food products, which remains on target for 2015 delivery.

We seek Safe Harbor.