Mr. Jagdip Bal reports

CANNABIS TASK FORCE REPORT IMPLICATIONS

Umbral Energy Corp., along with its partner PhyeinMed Inc., is encouraged by the recommendations released by the Canadian government's task force report on marijuana legalization and regulation. The Liberal government has emphasized its desire to legalize, regulate and restrict access to cannabis, and the task force was engaged to complete the task of compiling recommendations, which included government-vetted licensed producers as suppliers.

PhyeinMed is an ACMPR (access to cannabis for medical purposes regulations) applicant to become a licensed producer and believes that the recommendations put forth by the task force have a direct and encouraging impact on the direction of the company's business plan moving forward.

Debra Senger, chief executive officer of PhyeinMed, commented: "We are encouraged by the recently released recommendations of the Canadian government's task force on marijuana legalization and regulation. With the extent of information submitted and gathered, I believe that the government will adopt a sizable number of the 80 or so outlined in the report. The government would still need to draft legislation, which is likely going to be spring 2017, with the intent to publish the revised legislation in the fall of next year, at which time the new legislation will become law. While watching the press conference televised yesterday morning, it was very apparent that both the chair and co-chair of the task force agreed that the supply and demand under the new legalized recreational cannabis program would be significant. My belief [is], if a company is currently in the queue to become a producer such as ourselves of medical marijuana under the ACMPR, that we are preparing for the legal market and a licence for production. The system has been slow, which has discouraged many applicants. However, with the new legal market coming to Canada, the task force has absolutely acknowledged that supply will need to be ramped up and quickly. In the report, 'Canada's governments will need to move swiftly to increase or create capacity in many areas relating to the production and sale of cannabis.' We are currently in the security clearance stage, and I am hopeful that we will move into the next stage of the application early in the new year."

PhyeinMed, with its investment partner Umbral, will continue with short- and long-term initiatives to investigate and pursue ancillary opportunities in the cannabis industry.

We seek Safe Harbor.