Ann: Creso expands into Canada with acquisition of Mernova, page-5

Creso Pharma gains Canadian footprint, in world’s largest legal medicinal cannabis market, with acquisition of Mernova Medicinal Inc Highlights: • Acquisition of Mernova Medicinal Inc (Mernova) for C$10.1 million (A$10.2 million) in cash and equity • Creso Pharma becomes the only Australian cannabis company with direct exposure to the world’s largest legal medical cannabis market • Delivers on Creso’s strategy of establishing a Canadian presence and the pursuit of opportunities in the medicinal cannabis space, with added exposure to the huge recreational cannabis market anticipated to open up in 2018 • Enables Creso to vertically integrate its supply and production chain by building its own Good Manufacturing Process growing and extraction facilities Creso Pharma Limited (ASX:CPH, the “Company” or “Creso”) is pleased to announce that it has successfully expanded into the Canadian market with the proposed acquisition of emerging Nova Scotiabased medicinal cannabis producer, Mernova Medicinal Inc (Mernova) for a total C$10.1 million (A$10.2 million) in cash and equity.