Mr. Craig Goodwin reports

NATURALLY SPLENDID SECURES GLOBAL LICENSING AGREEMENT FOR WORLD'S FIRST PATENTED WATER SOLUBLE CANNABINOID TECHNOLOGY

Naturally Splendid Enterprises Ltd.'s 100-per-cent-owned American subsidiary, Naturally Splendid Enterprises USA Ltd., headquartered in the state of Colorado, has signed a letter of intent with Full Spectrum Laboratories Ltd., headquartered in Dublin, Ireland, to license FSL's cannabinoid extraction and patented formulation technologies.

The licence will grant Naturally Splendid USA worldwide rights to a suite of advanced cannabinoid technologies, including the first-issued United States Patent and Trademark Office patent for water-soluble cannabinoids, essential for the development and manufacturing of cannabinoid-based nutraceutical and pharmaceutical products and therapies. The licence will allow Naturally Splendid USA to create products and industrial solutions in those countries and jurisdictions that allow for the manufacture and distribution of cannabinoid-based products.

Naturally Splendid USA's worldwide licence will be for an initial term of 10 years with renewable five-year term options. The licence will allow Naturally Splendid USA to also sublicense these cannabinoid technologies to approved third party companies in countries that allow for the production and distribution of cannabinoid-based products and solutions. A definitive agreement is anticipated to close on or before Oct. 31, 2014. This transaction is subject to TSX Venture Exchange approval and legal due diligence by NSP.

Naturally Splendid chief executive officer Craig Goodwin stated: "The company continues to maximize revenue opportunities relating to cannabis sativa, which includes industrial hemp and marijuana. We have established a growing retail brand, Natera, that is being marketed across Canada and pushing into the United States based on the natural, nutritious foundation of industrial hemp. Now, through this worldwide licensing agreement with FSL, we have positioned the company's wholly owned American subsidiary to capitalize on the exploding demand for cannabinoid-based products and solutions. Initially, Naturally Splendid USA will focus on the American market, where hemp-extracted cannabinoid products are allowed, and in the 23 states that allow for marijuana-extracted cannabinoid products."

Bryan Carson, Naturally Splendid's vice-president of operations, added: "There are in excess of 80 cannabinoids within industrial hemp and marijuana, many being associated with health benefits. Two of the more recognizable cannabinoids are tetrahydrocannabinol and cannabidiol. We have secured technology from FSL that allows us immediate access to commercial-ready CBD products already developed for a wide range of neutraceutical product categories for distribution in the United States."

Cannabidiol is arguably becoming the most sought-after cannabis compound due to its medicinal and nutraceutical properties:

• Non-psychoactive;
• Anti-convulsant;
• Anti-epileptic;
• Anti-inflammatory;
• Anti-oxidant;
• Anti-psychotic;
• Neurological protection.

FSL's chairman, Charles Brink, further explained: "We have been working with Naturally Splendid for over two years through our sister company, Boreal Technologies. FSL has been impressed with Naturally Splendid's understanding and commitment to the hemp food and nutritional solutions industry. We see this licensing arrangement with Naturally Splendid USA as a vehicle to expand its involvement in the emerging cannabinoid-based products market, initially in the United States and eventually throughout the world.

"FSL has spent over five years and has invested well over $10-million developing the technologies covered in the licence with Naturally Splendid USA. The current American market for cannabinoid-based products is estimated to exceed $300-million this year and is expected to grow by more than 50 per cent a year for the foreseeable future. Additionally, as a result of the recent ruling by the courts in B.C., cannabinoid-based products may be legally available to qualified Canadian patients as soon as 2015. We expect the Canadian market for cannabinoid products to exceed $500-million a year by 2019. The technologies which we are licensing to Naturally Splendid USA will allow it to become a leading solutions provider to legally licensed medical marijuana growers in both the United States and Canada.

"FSL is excited to partner with Naturally Splendid and grow with them in the future, which is [why] we have negotiated a certain portion of our licence fees to be provided in the common shares of Naturally Splendid."

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