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File: 08252016 Alliance NR -  Merger Discussions.docx

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ALLIANCE GROWERS CORP.

NEWS RELEASE

ALLIANCE GROWERS CONTINUES MERGER DISCUSSIONS
 WITH PHARMAGREEN INCLUDING CANNA COMPANION

August 25, 2016 - Vancouver, B.C. - Alliance Growers Corp. (CSE: ACG) ("Alliance Growers" or the "Company") is pleased
---> to provide a progress report with regard to discussions and due diligence of WFS PharmaGreen Inc. ("PharmaGreen"), an
--->d Canna Companion Products, Inc. ("Canna"). Canna is a wholly owned subsidiary of PharmaGreen that produces and sells 
--->safe and effective cannabinoid infused pet products www.cannacompanionusa.com. 
Alliance continues its review of Canna operations. Canna is the result of over 16 years of research into the endocanna
--->binoid system. By applying the scientific principles of veterinary medicine and pharmacology combined with multidiscip
--->linary research and Canna's own testing and informal clinical trials, Canna has developed and refined Canna to where i
--->t can be a part of your dog and cat's holistic care. 
Alliance and PharmaGreen continue to pursue discussions regarding the development of a 40,000 square foot facility (th
--->e "Facility") to be the first of its kind in Western Canada to house a DNA Botany lab, extraction facility and Tissue 
--->Culture Plantlet Production facility to service the Cannabis market and agriculture market in general.
Alliance has continued further due diligence on the proprietary Tissue Culture "Chibafreen Invitro Plant Production Sy
--->stem" 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. 
In order to increase market awareness and to assist with initial financing prior to our European financing, Alliance h
--->as been in discussions with a Canadian based merchant capital firm. In addition to assisting Alliance in assessing its
---> market needs and providing necessary solutions, this firm can help the Company establish lasting and valuable long te
--->rm relationships with their clients and the financial community throughout North America.   It is anticipated that suc
--->h a relationship would augment the DGWA program for Europe.
Commenting on the potential merger with PharmaGreen including Canna Companion, Dennis Petke, Alliance Growers Presiden
--->t and CEO said, "As we continue our due diligence, we are increasingly impressed with the various business components 
--->and expertise that make up the entire PharmaGreen package as we move toward a possible full merger. We are very please
--->d that the Canna Companion business, along with the other PharmaGreen business components plus the new opportunities t
--->hat have been developed collectively over the past two months, round out the four areas of our Four Pillars Organizati
--->onal Plan".  
Mr. Petke continues, "A full merger with PharmaGreen including Canna Companion would uniquely position the Company in 
--->the pet products market by having the only cannabis formulation for pets that has been developed over two decades of r
--->esearch and development.  Along with new product development, the Company will be able to sustain itself as the leader
---> in this rapidly growing sector of the US and international pet product marketplace.  We would like to thank our share
--->holders for their continued support and patience: we truly believe our vision of a successful global cannabis company 
--->is within reach".
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.
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. 

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.