Mr. Sam Chaudhry reports

LEO RESOURCES INC. PROVIDES UPDATE REGARDING ACQUISITION OF GREEN LIFE CLINICS

Leo Resources Inc. has provided an update regarding the progress of its proposed acquisition of Green Life Clinics Ltd., as announced in the company's press releases dated May 9, 2017, May 16, 2017, May 29, 2017, July 7, 2017, and Nov. 9, 2017.

As previously announced, the company will, pursuant to an amalgamation agreement, acquire Green Life Clinics, a private British Columbia company, pursuant to a three-corner amalgamation. Under the amalgamation, the shareholders of Green Life will receive one common share of Leo for each Green Life share held, resulting in the aggregate issuance of 25 million Leo shares. In addition, holders of the Class B shares in the capital of Green Life will also receive a cash payment of 12.5 cents per share, for aggregate cash consideration of $2.0-million. Leo has previously paid to Green Life $3,225,000 in cash, which money was utilized by Green Life to repay shareholder loans incurred in relation the Green Life's acquisition of MCRCI Medicinal Cannabis Resource Centre Inc. and to make an advance in relation to Green Life's proposed acquisition of Patient Access Pavilions Ltd. (as previously announced May 9, 2017, and May 16, 2017).

Leo is pleased to advise that the Canadian Securities Exchange has confirmed receipt of the necessary information relating to the amalgamation, Green Life, Medicinal Cannabis and Patient Access, and is in the final stages of its review.

The company anticipates the completion of the amalgamation in June, 2018. In connection with the amalgamation, the company expects to change its name to CannRX Labs Inc. and its symbol to MJRX.

Trading in the common shares of the company is expected to remain halted pending satisfaction of applicable requirements of the CSE. There can be no assurance that trading in the common shares of the company will resume prior to completion of the amalgamation.

The company would also like to announce the results of its annual general meeting held on May 22, 2018. The shareholders have passed all resolutions, with a success rate of over 98 per cent for the company.

The board of directors and management would like to thank all shareholders for their support, confidence and patience.

We seek Safe Harbor.