Mr. Chuck Rifici reports

AUXLY ANNOUNCES ISSUANCE OF SALES LICENCE FOR KOLAB PROJECT AND PROVIDES UPDATE ON SASKATCHEWAN RETAIL STRATEGY

Auxly Cannabis Group Inc.'s wholly owned subsidiary, Kolab Project Inc., has received its sales licence from Health Canada, pursuant to the Access to Cannabis for Medical Purposes Regulations. The sales licence authorizes Kolab to sell dried cannabis to registered Canadian medical patients across the country through its on-line portal.

Kolab will source the best cannabis products from the entire Auxly cultivation platform and through partnerships with acclaimed growers from around the world. Among these will be Kolab's facility in Carleton Place, Ont., where the second phase of construction has been completed and is expected to be commissioned for cultivation in the coming months. Once phase 3 is completed, the facility will total 20,000 square feet, have over 20 local employees and be a centre of excellence for the production of medical-grade cannabis.

"The sales licence marks a significant milestone in Kolab's development of a different kind of company -- one that rethinks the patient experience," said Andrew Rock, chief operating officer of Kolab. "As a craft grower, we are passionate about our product and take our commitment as a licensed producer seriously. Through our focus on research and development, we will produce the highest-quality medical-grade cannabis. I am grateful to our team for the dedication and hard work that got us here and look forward to building a community that enriches the health and wellness of Canadian patients."

The company is also pleased to announce that Kolab has been selected to apply for a cannabis retail permit in Lloydminster, Sask. The permit, if granted by the Saskatchewan Liquor and Gaming Authority, will allow for Kolab to operate one physical location in addition to a provincewide e-commerce platform to serve the adult-use market following the legalization of recreational cannabis. The company is actively working to finalize details of the application and retail concept and anticipates having the retail outlet built and operating following legalization on Oct. 17, 2018, subject to regulatory and municipal approvals.

"We could not be more pleased with the issuance of the sales licence to Kolab. The receipt of the sales licence is instrumental in allowing Kolab and Auxly to execute on the broader business strategy of the entire platform. We remain convinced that Andrew has assembled the right team and is well equipped to deliver patients an elevated experience by sourcing the best products from across Auxly's cultivation partners," said Chuck Rifici, chairman and chief executive officer of Auxly. "We are also honoured to have been selected as a retail cannabis store licence applicant in Saskatchewan. This new retail store and e-commerce presence in Saskatchewan serve as an important piece of Auxly's downstream distribution segment as we look to address both the medical and adult-use markets on a provincial and national basis."

About Kolab Project

Kolab project is a wholly owned subsidiary of Auxly Cannabis Group and is a licensed producer pursuant to the Access to Cannabis for Medical Purposes Regulations. Kolab Project will offer a unique patient experience that will be curated in collaboration with the best and brightest growers, licensed producers, creators and artists.

About Auxly Cannabis Group Inc.

Auxly Cannabis Group is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Its mandate is to facilitate growth for its partners by providing them with financial support and sharing its collective industry experience. The company`s partners all have different visions, voices and brand values, and all share a common goal to build a world-class industry based on ethics, diversity, quality and innovation.

We seek Safe Harbor.