Questions for QBL: MCL:Vitahemp: VitaCann: CannTab : MCL:AEB, page-45

Good afternoon QBL'ers here are answers to some more questions. Please be patient with the company getting back with your answers. QBL's shareholders/interested parties are a top priority but they also must continue to work for the benefit of their shareholders by focusing on direct company business. I am sure you can appreciate this. You will see that management have tried to go in to good detail to answer these questions.

QUESTION: I want to know who is running MCL and the need to explain on hotcopper. Announcement on 3rd march 2017 Item b&c. Should the asx have another look at this and get qbl to re-comply under listing rules 11.1.2 & 11.1.3

ANSWER:
MCL has its founding director, Andrew Kavasilas on the board, who has been directly responsible for overseeing the day to day management of the business, overseeing the farmers and growing of the cannabis for the Vitahemp brand, responsible for the maintaining of the seed bank for further medical development, and overseeing the Vitahemp team who are managing the production and distribution of the product, which is being directly managed by Peter Edwards and the HHC team. Two directors have been appointed by QBL to the board of MCL, being Pnina Feldman and Sholom Feldman. The appointment of QBL directors to the board of MCL is to ensure that the ongoing strategic deals being implemented by MCL take into account the interests of QBL shareholders, being the majority shareholders of MCL. These include the recent strategic deals with AEB and Canntab who come with their own dedicated teams who will be developing those deals further together with MCL.

QBL are currently looking at its corporate options with regards to what is best for QBL shareholders, if that means a recompliance with the listing rules to include the business of MCL to be directly merged with QBL on an ongoing basis, or if that may mean a separate IPO of MCL or other possible options. The directors of QBL are currently in discussion with their market advisors and the investment community to see what the best outcome and options are for QBL shareholders. Once a decision is made the market will be formed via the ASX announcement platform.

QUESTION: I know MCL has mentioned that they would like to list on the ASX but would this seriously effect QBL 55% stake as it might drive investors to MCL and not QBL would it be better to combined under one banner and have a name change. And would it be wise to put the Bauxite ML application in earlier than March/April as this would put SH at ease as I believe this Bauxite progression has been a long drawn out process.

ANSWER: The same answer as the last paragraph of the above question. QBL are currently looking at its corporate options....

With regards to the bauxite, the company is doing whatever they are able to progress the project as quickly as possible. At the moment the crucial milestone is to secure the appropriate customer to ensure the project can confidently be developed for the long term. As soon as this has been finalised the directors will inform the market via the ASX announcements platform.

QUESTIONS: That’s fair provided all questions are answered even the ones the company seem difficult like Dividends timeframe and realistic release of when shareholders can expect revenue from the cann tab deal? I think these are fair. Do you feel these are fair for a shareholder or potential shareholder to ask considering these questions stem directly from announcements made by the company? I will appreciate a response here Neil. The best way for QBL to get the monkey off their back is to address this.

ANSWERS:
With regards to dividends:
The company directors have made a clear decision that once the company will see profits, the company intends to declare dividends. The directors believe that the company has very real potential to see profits in 2018 at the very least from their Vitahemp business. The business plan for this business has been made clear in a number of previous announcements, particularly the announcement relating to the purchase of HHC ensuring that MCL has a completely vertically integrated business model, and the announcement relating to the launch of its Vitahemp product range. Should these businesses be the success that the directors believe them to be, then there should be profits generated in the coming year which should allow dividends to be distributed to shareholders, the amount of which would depend on the amount of profit to be generated. As this is a new business, the company is not yet in a position to announce projected profits, only that this is what the company is working towards, and the company now has the entire infrastructure in place to allow that to happen, from the seed, to the farmers, to the production and manufacturing to distribution of wholly Australian grown and manufactured product. We believe we are the only company that can make this claim to be fully integrated on a large scale. The business plan is made very clear in those announcements.

With regards to the medical business:
We set out our business plan very clearly in the Canntab announcement, and we believe we are unique amongst all the ASX listed companies with regards to our product and potential under current legislation, not under fantasy possible legislation that may yet be introduced. Do any of the other companies yet have a product that addresses all the issues that we have addressed in our Canntab announcement? Do they really believe that doctors will prescribe widespread smoking of joints or vaping? We have made clear what our strategic advantage is with this product, and we believe that both in the short term, and in the long term, the Canntab product will be the product of choice for the ODC, TGA and the medical establishment. The potential of being the first approved real medical cannabis pharamaceutical grade
product is massive, and it has the potential to feed into the multi billion dollar market looking for such a product. We believe we are in the best position compared to any other company to meet the market and industry demands. Read that announcement again and you will see clearly our business plan set out in detail. Then compare it with the business plans of the other ASX listed medical cannabis companies, then we’d be happy to address any point that you may find of any strategic business advantage that the other companies may have over our plan.

Regarding a MCLicence:
Having our own research licence for medical cannabis is currently still being finalised, and does not affect our ability or otherwise to apply for an import licence of the product from Canada, which we believe will be granted soon, and once granted, the business potential of this product is simply huge, and as it is a new business can not be quantified, but anyone can see that the potential here is massive.

We believe that 2018 will prove to be a very exciting and successful one for the varying businesses of MCL, and would be happy to address any further specific questions you may have on the business and company. I would suggest that you first reread all the announcements of the company of the past couple months and you will see they have been written with great detail that should answer your questions.

QUESTIONS:  Are you able to give us an indication on the timing of the MCL IPO? 2nd Quarter? Indicative list price? 20c 50c $1.00? Will MCL be tightly held? Does MCL already have a Medical Cannabis Licence? Is Phosphate and QBL just a pipe dream or future possibility ?

ANSWERS:

QBL are currently looking at its corporate options with regards to what is best for QBL shareholders, if that means a recompliance with the listing rules to include the business of MCL to be directly merged with QBL on an ongoing basis, or if that may mean a separate IPO of MCL or other possible options. The directors of QBL are currently in discussion with their market advisors and the investment community to see what the best outcome and options are for QBL shareholders. Once a decision is made the market will be formed via the ASX announcement platform.

We are diligently working towards completing the final paperwork to receive a MCL from the ODC. As soon as we get approval, we will inform the market. We are confident that approvals will be fast tracked in line with the government’s recent legislation changes.

With regards to other possible investments, the company is always looking at opportunities that the directors believe will add value to QBL, and should any of these opportunities be progressed, the Company will make such announcements on the ASX announcement platform.

QUESTIONS: I find it difficult to invest money in a company without an independent review of where the company is heading. I have been trying to locate the pre feasibility study and definitive feasibility study on the bauxite project but I have had no success. I have also been trying to locate the feasibility study or maybe better to call it the business plan for their hemp venture to no avail. Could you please provide the links to this information or copy and paste the information.

ANSWERS:
The company completed a scoping study on the bauxite and was released to the market in the following announcement.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01588588

The company’s position has been, that due to the simple nature of bauxite mining at South Johnstone, which is all simple surface mining, just removing the top few metres of soil and putting it on the back of a truck, which is very similar to simple quarrying, there is no need for the company to go into a full feasibility study, and the company is satisfied to progress the project on the back of the work done to date.
With regards to the business plan of the hemp and medical cannabis, these were clearly set out in the recent announcements, as responded to above.

QUESTION:  What "type" of products will VITACANN/MCL produce if CannTab is marketed under its own brand? Which countries are included in MCL's CannTab Asian distribution option? China? Japan?

ANSWER:
QBL:MCL under the agreement with its subsidiary VitaCann and 50/50 JV partner CannTab will have access to the full range of CBD and non CBD tablets manufactured by CannTab. The agreement allows VitaCann to import the initial products to Australia for testing and approval by the TGA. Using our world class Medical Cannabis seed bank we intend to eventually manufacture and distribute these Medical Pharmaceutical Grade Cannabis Pills made from Australian Medical Cannabis to all the Pharmacists in Australia. We have the exclusive first right of distribution to the entire Asian market, including the countries you mentioned.

QUESTION: Any word from QBL on how the crop for late Feb/March is progressing? Have there been any challanges? Not sure if the farmers already had any previous experience in hemp crops?

ANSWERS: The company intends to put out an update announcement on this on the ASX announcement platform once this information is received by the company from the farmers etc, as this is information that once the company has received an update regarding these matters, needs to be provided to the entire market under the company’s continuous disclosure obligations.

We will continue to address more questions that have been posted here today. Please make sure you read our 2 posts carefully. Often questions can be very similar. 2 questions that have not been answered here will be answered in a future ASX release.

Hope this helps.

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