Mr. J. Craig Goodwin reports

NATURALLY SPLENDID TO CUSTOM FORMULATE HEMPOMEGA FOR LAGUNA BLENDS PROTEIN LINE

Naturally Splendid Enterprises Ltd. has signed a letter of intent with Laguna Blends Inc. Under the terms of the LOI, Laguna and NSP plan to enter into a research, development and manufacturing agreement for the purpose of pursuing mutually beneficial business opportunities in the hemp food products area.

Pursuant to the proposed terms of the definitive agreement, NSP will develop a new hemp protein formulation enhanced with HempOmega and flavour for Laguna (Laguna HempOmega-infused protein products) and Laguna will contribute its expertise as a marketing and sales company in the hemp food products market and the purchase, sale and distribution of the Laguna HempOmega-infused protein products.

The LOI also provides that Laguna will place an initial purchase order of $100,000 for the Laguna HempOmega-infused protein products. Laguna anticipates ordering, in its sole discretion, a further $1.5-million of the HempOmega-infused protein products in the first year of the definitive agreement and $4.5-million of the HempOmega-infused hemp protein products in the second year of the definitive agreement. Following entry into the definitive agreement, there is no assurance that Laguna will complete any or all of the additional purchase orders.

Under the agreement, NSP will grant to Laguna (i) a licence to place the HempOmega trademark on the Laguna HempOmega-infused protein products, as specified on a white-label/private-label agreement, (ii) a worldwide exclusive (dependent on Laguna achieving certain minimum sales targets) on these specific formulations and (iii) the right and licence to Laguna to sell the Laguna HempOmega-infused protein products. Laguna must meet minimum sales targets (to be agreed upon in the agreement) in order to retain exclusive rights to the product.

Laguna and NSP anticipate finalizing the definitive agreement by the end of May, 2015.

Stuart Gray, president, chief executive officer and director of Laguna Blends, states: "Naturally Splendid is a leader in the research and development and production of hemp-based superfood products. We are delighted to collaborate with NSP with the development of the hemp protein formulations enhanced with their patent-pending HempOmega. The products that NSP produces for Laguna will be high in quality and unique to what's currently available. Laguna affiliates will be able to retail these products in the United States and Canada."

The completion of the proposed transaction pursuant to (i) the research and development agreement is subject to satisfactory due diligence regarding the business and affairs of the parties, (ii) any necessary contractual and other third party consents, and (iii) all necessary regulatory consents and approvals required pursuant to applicable law or in accordance with the rules of any stock exchange on which the common shares of either party are listed for trading at the relevant time.

Naturally Splendid chief executive officer Craig Goodwin states, "We are most pleased to have the opportunity to secure a significant strategic partner to market and distribute HempOmega-infused products and look forward to developing this and in fact multiple business relationships as we continue to monetize the technologies we have recently licensed from Full Spectrum Laboratories."

We seek Safe Harbor.