MGC Pharmaceuticals Ltd (ASX: MXC or “the Company”) confirms...

MGC Pharmaceuticals Ltd (ASX: MXC or “the Company”) confirms formal legalproceedings has recently commenced in the United Kingdom against VarmCosmo Co., Ltd.(“Varmcosmo”) for breach of material contract terms, in relation to the binding supplyagreement (“Agreement”) between Varmcosmo and MGC Derma d.o.o. (“MGC Derma”)dated 27 October 2017.The formal legal action follows the issue of a formal contract default notice in September2018 to Varmcosmo, for failing to meet its contractual obligations under the Agreement.The Company intends to vigorously pursue this action against Varmcosmo and theirDirectors.The Company seeks a minimum €625,000 in contract restitution at the time of default,plus damages suffered by MGC Derma in connection with Varmcosmo's failure to complywith its obligations under the Agreement including loss of contract revenue.MXC will update shareholders of material developments or outcomes from these legalproceedings.

—Ends—

For further information, please contact:

Media Enquiries

Rosa Smith

Media and Capital Partners

+61 457 305 047

[email protected]

MGC Pharmaceuticals Ltd

Brett Mitchell

Executive Chairman

+61 8 6382 3390

[email protected]