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File: 08192016 Alliance NR -  Update on LOI and Frankfurt Listing.docx

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ALLIANCE GROWERS CORP.

NEWS RELEASE

ALLIANCE GROWERS ANNOUNCES UPDATE ON JOINT BUSINESS COLLABORATIONS WITH PHARMAGREEN IN CONNECTION WITH ITS APPLICATION
---> FOR LISTING ON THE FRANKFURT STOCK EXCHANGE

August 19, 2016 - Vancouver, B.C. - Alliance Growers Corp. (CSE: ACG) ("Alliance Growers" or the "Company") is pleased
---> to provide an update report to its progress with regard to discussions and due diligence of WFS PharmaGreen Inc. ("Ph
--->armaGreen"), and Canna Companion Products, Inc. ("Canna") www.cannacompanionusa.com, a wholly owned subsidiary of Phar
--->maGreen.  Alliance and PharmaGreen have entered into discussions for the development of a 40,000 square foot facility 
--->(the "Facility") to be the first of its kind in Western Canada to house a DNA Botany lab, extraction facility and Tiss
--->ue Culture Plantlet Production facility to service the Cannabis market and agriculture market in general. 
Alliance continues its review of Canna operations and further due diligence on the proprietary Tissue Culture "Chibafr
--->een Invitro Plant Production System" as well as further discussions regarding additional joint business interests and 
--->opportunities with PharmaGreen, including the potential of a full merger between PharmaGreen and Alliance.
To finance the development of the Facility, the Company has engaged DGWA, the German Institute for Asset and Equity Al
--->location and Valuation, known and respected as one of the leading German Corporate Boutiques for global small and mid-
--->cap consulting and investments.  As reported on August 18, 2016, Alliance has applied for a listing on the Frankfurt S
--->tock Exchange, as the beginning of a European partnership with DGWA. 
Dennis Petke, Alliance Growers President and CEO states, "Our partnership with DGWA provides Alliance access to German
---> capital market to assist us in raising, in stages, the capital required to fully finance the joint business arrangeme
--->nts with PharmaGreen, including funding the setup of the Facility".
Mr. Petke continues, "Since we began discussions with PharmaGreen in June 2016, new opportunities have been developed 
--->collectively to exploit the current and future Cannabis markets through multiple initiatives worldwide, utilizing the 
--->resources from both Alliance and PharmaGreen".
Peter Wojcik, PharmaGreen CEO adds, "We are very pleased with the discussions of the various joint business opportunit
--->ies with Alliance thus far.  We are very excited about the addition of Alliance's Frankfurt Listing as this will place
---> Alliance in an excellent position to fund our joint collaborations".
 About the Frankfurt Stock Exchange (Frankfurter Wertpapierborse: FWB):
According to the FWB website, an estimated 45 percent of Europe's top 300 companies have their primary listing on the 
--->London or Frankfurt exchanges.  The Frankfurt Stock Exchange is an international trading centre with more than 215 mar
--->ket participants, 50% of which are from countries other than Germany. The FWB is one of the world's largest stock exch
--->ange for securities trading and ranks 10th in the "Trillion Dollar Club". With 90 per cent of its turnover generated i
--->n Germany, namely at the two trading venues Xetratrademark and Borse Frankfurt, it is the largest of the seven regiona
--->l securities exchanges in Germany.  Besides the specialist trading at Frankfurt Stock Exchange, its fully electronic t
--->rading system Xetratrademark is one of the leading electronic trading platforms in the world. With the launch of Xetra
---> in 1997, the Frankfurt Stock Exchange strengthened its competitive position and created attractive framework conditio
--->ns for foreign investors and market participants. The FWB was founded over four hundred years ago in 1685 and is opera
--->ted by Deutsche Borse AG. 
About Alliance Growers  
Alliance Growers Corp (ACG: CSE) is a diversified cannabis company driven by the Company's 'Four Pillars' Organization
---> Plan - MMPR cannabis production facilities, distribution network, consumer products, and research and development. Al
--->liance has advanced on its discussions regarding joint business interests and opportunities with PharmaGreen, includin
--->g a potential full merger of PharmaGreen and Alliance Growers, subject to continued extensive due diligence and analys
--->is. For further information please visit the Company's corporate website at www.alliancegrowers.com or the Company's p
--->rofile at www.sedar.com.
If you would like to be added to Alliance Growers' news distribution list, please send your email address to newslette
--->r@alliancegrowers.com 
About Pharmagreen
WFS Pharmagreen Inc. is a private company located in Mission, B.C. that is in the business of manufacturing and market
--->ing cannabis-hemp based products for animals and owns the exclusive international rights to all present and future Can
--->na Companion formulations and products. The Company's executive management team and its advisory committee are compose
--->d of a significant mix of professionals that have been carefully gleaned from the fields of private and public company
---> management; veterinary science; human medical science; marketing, branding and business development capped with unpar
--->alleled academic and celebrity endorsement. The Company's animal products are developed under its 100% owned subsidiar
--->y Canna Companion Products, Inc. based in Washington State, U.S.A.  Canna operates a 5,000 sq. ft. facility for produc
--->t formulation, fulfillment and customer care center in Monroe, Washington in support of its U.S. based sales for all l
--->evels, distributors, dealers, and e-commerce of the Canna Companion products, www.cannacompanionusa.com . 
About DGWA
DGWA, the German Institute for Asset and Equity Allocation and Valuation, is a partner for the European Financial Mark
--->ets - known and respected as one of the leading German Investment Banking Boutiques for providing global small and mid
--->-cap Financial Advisory Services.
They build solid, substantial and comprehensive bridges for listed and non-listed companies to investors, financial in
--->stitutions and multipliers like press and media and offer finest financial engineering solutions, tailor made for thei
--->r clients.
DGWA's management team runs a 25-year track record in trading, investing and analyzing SME's around the world. It has 
--->been so far involved in over 250 IPO's, financings, bond issues, dual listings and corporate finance transactions, as 
--->well as corresponding road shows and awareness campaigns.
DGWA is based in Frankfurt, home of the European Central Bank, centre of Europe's financial activities and neighbours 
--->with various leading and specialized financial institutions - located in the heart of Europe and easily accessible via
---> one of the largest airports in the world.
 
On behalf of the board of directors of 
ALLIANCE GROWERS CORP. 
"Dennis Petke" 
Dennis Petke
President and CEO

For more information contact:

Dennis Petke 

Tel: 778-331-4266
DennisPetke@alliancegrowers.com 

Rob Grace
Corporate Communications
Tel: 778-998-5431
RobGrace@alliancegrowers.com 
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable
---> securities laws. These statements relate to future events or future performance. All statements other than statements
---> of historical fact may be forward-looking statements or information. More particularly and without limitation, the ne
--->ws release contains forward-looking statements and information relating to the use of proceeds of the Financing, as we
--->ll as the Company's corporate strategy. The forward-looking statements and information are based on certain key expect
--->ations and assumptions made by management of the Company, including, without limitation, the Company's ability to carr
--->y out its business plan following the issuance of the required licenses by Health Canada. Although management of the C
--->ompany believes that the expectations and assumptions on which such forward-looking statements and information are bas
--->ed are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assu
--->rance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current exp
--->ectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such s
--->tatements and information may not be appropriate for other purposes, such as making investment decisions. Since forwar
--->d-looking statements and information address future events and conditions, by their very nature they involve risks and
---> uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and
---> risks. These include, but are not limited to, the Company's ability to identify and complete additional suitable acqu
--->isitions to further the Company's growth as well as risks associated with the medical marijuana industry in general, s
--->uch as operational risks in development and production delays or changes in plans with respect to development projects
---> or capital expenditures; the uncertainty of the capital markets; the uncertainty of receiving the required licenses, 
--->production, costs and expenses; health, safety and environmental risks; marketing and transportation; loss of markets;
---> environmental risks; competition; incorrect assessment of the value of the potential market; ability to access suffic
--->ient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes
---> in legislation, including but not limited to tax laws and regulated regulations. Accordingly, readers should not plac
--->e undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers 
--->are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements and information contained in this news release are made as of the date hereof and no un
--->dertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of 
--->new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securiti
--->es Exchange. The forward-looking statements or information contained in this news release are expressly qualified by t
--->his cautionary statement.