Mr. Robert Eadie reports

EARLY WARNING REPORT FILED

Robert Eadie, president and chief executive officer of Yellow Stem Tech Inc., has filed an early warning report in accordance with National Instrument 62-103 (the Early Warning System and Related Take Over Bids and Insider Reporting Issues), in connection with the acquisition of a total of 4,155,200 shares at a deemed price of 10 cents per share, pursuant to a debt settlement agreement with the company.

Mr. Eadie advises that upon this acquisition, he holds a total of 7,638,951 common shares of the company, representing approximately 24.94 per cent of the company's 30,623,451 issued and outstanding common shares.

A copy of the early warning report may be found under the company's profile on SEDAR.

Mr. Eadie advises that shares were acquired through a debt settlement agreement with the company and that he did not act jointly with any other party in acquiring the shares, and does not act jointly or in concert with any other person in exercising his rights over such shares.

Mr. Eadie further advises that he acquired the shares to settle a debt, but that he may acquire additional securities, or dispose of some or all of his securities, from time to time in the future.