Mr. John Miller reports

THELON CAPITAL LTD. ANNOUNCES THE ACQUISITION OF TWO MARIHUANA FOR MEDICAL PURPOSES LICENSE APPLICANTS

Thelon Capital Ltd. has acquired two MMPR licence applicants: THC Meds and T.H.C. Medical Systems.

Through the completion of a share-exchange agreement, Thelon acquired 100 per cent of the issued and outstanding shares of each of the THC companies and will change its business to becoming and operating as an MMPR-licensed producer and the research and development of products and services related to medical marijuana. Both THC companies have applications with Health Canada for producer's licences under Canada's Marihuana for Medical Purposes Regulations (MMPR). THC intends to cultivate medical marijuana and conduct scientific research and development in order to offer products and services through two revenue streams: (a) medical marijuana sales to other MMPR licensed producers and (b) products and services related to medical marijuana.

THC has appointed John Miller as its president and chief executive officer. Mr. Miller is the senior person in charge and will head THC's efforts to obtain the MMPR licences.

T.H.C. Medical Systems Ltd. has an existing 6,000-square-foot facility in Kelowna, B.C. The facility has been outfitted with a state-of-the-art, integrated security system for meticulous record keeping. An on-site analytical laboratory is equipped with the required instruments, such as a high-performance liquid chromatography detector (HPLC), to determine active cannabinoids present in reference standards. THC Medical Systems grew marijuana for research and development purposes under a Section 56 exemption of Canada's Controlled Drugs and Substances Act, which was in effect from August, 2013, to August, 2014.

THC's previous activities of cultivating and conducting research on marijuana allowed THC to conduct analytical testing on site for research purposes. Medical cannabis is still an emerging industry and THC believes that it is important that substantiated scientific data and evidence be published that will help educate the public and the medical community. THC aims to use its scientific research to break down barriers and encourage the responsible development of the medical cannabis industry.

By providing scientific and biotechnological support services to a target demographic that includes current and potential licensed producers under MMPR, THC intends to strengthen current industry standards, while establishing a robust and safe source of medical marijuana. On Jan. 22, 2015, Health Canada conducted its prelicensing inspection of the company's existing facility in Kelowna. The company looks forward to Health Canada's feedback as it strives for continuous quality improvement.

There can be no assurance that the company will obtain an MMPR licence. In the event the company does not obtain an MMPR licence, it will focus on the other aspect of its business, namely the supply of goods and services related to the medical marijuana business. THC acquired 100 per cent of the issued and outstanding shares of the THC companies in exchange for consideration of 56,976,246 of its common shares. There are an additional 26,823,751 earn out shares that may be issued to the former shareholders of the THC companies on the accomplishment of certain milestones: 16.6 million to be released in the event that an MMPR licence is granted by Health Canada to one of the two subsidiaries and 10,233,751 to be released pending the removal of certain potential liabilities of the THC companies.

In addition to appointing Mr. Miller as the company's new president and CEO, THC has also appointed Mr. Miller to its board of directors. Hee Jung Chun, the president of both THC companies, has been named to the board of directors, as well as George Smitherman of Toronto, Ont., Jason Walsh and Geoff Watson have remained on the board.

Scott Walters, Mark Tommasi and John Roozendaal have resigned from the board. Mr. Walters has also resigned as president and CEO. On Jan. 14, 2015, as a condition precedent to the closing of the share-exchange agreement, the company completed a plan of arrangement with Thelon Diamonds Ltd. in which the company vended out its interests in the joint venture in diamond mining with Peregrine Diamonds Ltd. and the related mineral leases in exchange for 2.26 million common shares of Thelon Diamonds Ltd. The company immediately distributed the Thelon Diamonds shares to its shareholders as of the record date of Oct. 21, 2014.

THC has received conditional approval for the listing and trading of its common shares on the CSE.

We seek Safe Harbor.