Ann: Half Yearly Report and Accounts, page-6

Extremely and positive news -

- MXC is on track to generate its first operational cashflow during the March quarter with the commercial launch
and first sales from its first line of MGC DERMA CBD based cosmetic products, and its online MGC DERMA
cosmetics shop.

- first Cannabidiol (CBD) resin production in Slovenia during mid-2016, and potentially in additional jurisdictions during the 2016
calendar year. Looking like 2 harvest this year !!!!

-During the December quarter MGC moved towards completion of the manufacture
of 16,000 initial units, worth approximately $1,000,000 in gross retail revenue using current exchange rates.

-The Company made significant progress towards establishing its Australian strategy, following the recent
developments within the Federal Government to legalise the cultivation and distribution of medical cannabis in
Australia.

- This is New ! Additionally, MXC has entered into a collaborative relationship with BuddingTech – a hub for technological
involvement in the cannabis industry, with the goal of furthering multiple agendas in the Cannabis space –
including regulation of the industry and aligning key stakeholders in the cannabis industry in Australia. This is a
key plank of MXC’s strategy and is in line with the Prime Minister, Mr Malcolm Turnbull's new technology
innovation policy, assisting MXC in creating unique leveraged relationship to facilitate a speedy move into being
a market leader in all elements of the cannabis supply chain in Australia, while maintaining a presence in the
forming of the industry in this country.

-Love this , Given the current outlook towards legislative change in Australia and the possibilities innately available to us by
focusing on our CBD heavy strains, there is the potential for MXC to be one of the largest producer of CBD in the
Southern Hemisphere,


better then Gold / OIL , CBD $80k kilo !!!