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File: LAG News - CBD Water - Jan 24th 2017 - final V2.docx

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Laguna Completes Definitive Equity Agreement with
Carlsbad Naturals for Nano-Amplified CBD Water

January 25, 2017 - Kelowna, BC - Laguna Blends Inc. (CSE: LAG) (OTC: LAGBF) (Frankfurt: LB6A.F) (the "Company" or "Lag
--->una") is pleased to announce that it has signed a definitive agreement with Carlsbad Naturals LLC ("Carlsbad") whereby
---> Laguna and Carlsbad have entered into an equity acquisition agreement ("Equity Agreement") for the purpose of pursuin
--->g mutually beneficial business opportunities in the Cannabidiol (CBD) bottled water Industry and CBD ingestible produc
--->ts Industry (the "Transaction"). 

Carlsbad is a leader in the distribution and sales of CBD bottled water in the USA through its unique and proprietary 
--->process of infusing CBD's though nanotechnology. Carlsbad Naturals has revenues of $521,000 from September 1, 2016 - D
--->ecember 31, 2016.  In addition to the current sales growth of Carlsbad, Laguna plans to generate CBD water sales throu
--->gh its Club 8 online marketplace and its B to B distribution channel in the USA and Canada.

Ray Grimm, President & CEO of Laguna Blends, states: "The partnership with Carlsbad firmly solidifies Laguna as a uniq
--->ue player in the multibillion dollar bottled water and functional beverage industry. Carlsbad CBD water was formulated
---> with the sole purpose of creating a high alkaline water with the added benefits of CBDs. Many believe this to be the 
--->next evolution in the water industry, providing unique health benefits due to the proprietary nanotechnology. Carlsbad
---> CBD water provides antioxidants at the cellular level along with providing cellular hydration and energy. Laguna is c
--->urrently in discussions with Carlsbad regarding further business opportunities including but not limited to the acquis
--->ition of controlling interest."
Charles Vest, VP of Sales of Laguna Blends Inc.'s new hemp and CBD on-line marketplace "Club 8" said: "According to ne
--->w data from Arcview Market Research, cannabis consumers in North America spent a combined $53 billion in cannabis cons
--->umables in 2016. The legal supply of  cannabis product increases in North America because several US states have recen
--->tly joined the list of legalizers while at the same time lawmakers are expected to begin the process of recreational l
--->egalization in Canada later this year. The estimated $53 billion in sales is more than was generated by McDonald's and
---> Starbucks combined in 2016." 
"The high amount of existing consumers differentiates cannabis from other major consumer-market investment opportuniti
--->es in history. There is a huge demand for clean cannabis products in our industry today. We just need to move demand f
--->or an already widely-popular product into safe and legal channels. Experts see the biggest growth in sectors like edib
--->les and concentrates. It is much easier and safer to buy these products from a trusted retailer than to make them at h
--->ome. Not only Carlsbad's Nano-Amplified CBD Water but all of our current and upcoming products in "Club 8" will benefi
--->t from this massive and unstoppable growth trend", he added.
Pursuant to the terms of the transaction, Laguna has up to 75 days to acquire a 19% equity stake in Carlsbad. Laguna w
--->ill initially purchase nineteen percent (19%) equity interest in Carlsbad for a one-time payment of $250,000 USD paid 
--->for in cash and $546,000 paid for in Laguna common shares for a total purchase price of $796,000.00 USD. Laguna is cur
--->rently in discussions about acquiring additional equity interest, for majority control.

The common shares issued for the initial 19% are subject to lock up and or leak out provisions   whereby the first 1/1
--->2 of the common shares will be released 4 months and a day after issuance. 1/12 will be issued every subsequent month 
--->thereafter. 

About Carlsbad Naturals
 
Created by a team of doctors, Carlsbad Naturals brings cutting edge science to deliver nutrients and hydration in an e
--->ffective way, naturally and responsibly. Applying quantum physics, our nanotechnology successfully increases the surfa
--->ce area of each substance we put in our water, so that less is much more. Carlsbad Naturals is a market leader in the 
--->distribution and sales of CBD Water using its unique and proprietary process of infusing CBD's though nanotechnology. 
--->For more information about Carlsbad Naturals, please go to www.cbdnaturals.com

About Laguna Blends Inc.

Laguna Blends is a market leader in the distribution of Hemp and CBD products. Lagunas growth strategy includes acquir
--->ing and incubating companies who formulate and or manufacture Hemp products. Laguna Blends markets Hemp products utili
--->zing its B to B Network along with driving traffic to its online marketplace. It's Lagunas intent to provide the highe
--->st quality hemp product experience for the end user, utilizing a proprietary nanotechnology in many of its consumable 
--->and topical skin care products. Laguna is currently seeking joint ventures and acquisitions to expand its portfolio an
--->d will aggressively begin international expansion into Asia and Europe in 2017.

ON BEHALF OF THE BOARD "Ray Grimm Jr" CEO, President & Director  CORPORATE COMMUNICATIONS: Howe & Bay Financial: 604-4
--->49-5302
COROPRATE MEDIA:
ir@lagunablends.com www.lagunablends.com https://cbdskincream.com/    Join Us On Face Book: https://www.facebook.com/L
--->agunaBlends/ 
Twitter: @LagunaBlends 
 Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicabl
--->e securities laws relating to statements regarding the Company's business, products and future the Company's business,
---> its product offerings and plans for sales and marketing. Although the Company believes that the expectations reflecte
--->d in the forward looking information are reasonable, there can be no assurance that such expectations will prove to be
---> correct. Readers are cautioned to not place undue reliance on forward-looking information. Such forward looking state
--->ments are subject to risks and uncertainties that may cause actual results, performance and developments to differ mat
--->erially from those contemplated by these statements depending on, among other things, the risks that the Company's pro
--->ducts and plan will vary from those stated in this news release and the Company may not be able to carry out its busin
--->ess plans as expected. Except as required by law, the Company expressly disclaims any obligation, and does not intend,
---> to update any forward looking statements or forward-looking information in this news release. Although the Company be
--->lieves that the expectations reflected in the forward looking information are reasonable, there can be no assurance th
--->at such expectations will prove to be correct and makes no reference to profitability based on sales reported. The sta
--->tements in this news release are made as of the date of this release.