Ann: MXC Enters Multi $M Australian Pharma Market, page-2

• Heads of Agreement (“HOA”) signed with specialist Australian pharmaceutical distributor, HL Pharma Pty Ltd to bring MGC Pharmaceuticals’ affordable epilepsy product, CannEpilTM to the Australian market for treating epilepsy patients

• Definitive Agreement to be finalised and executed within 14 days of signing the HOA

• Sets in place the timeline for multiple milestones, including delivery of the first MGC Pharmaceuticals’ medical cannabis products to Australian epilepsy patients

• Signifies the commencement of Australian sales pipeline and revenue stream

• Leverages MGC Pharmaceuticals’ established relationship with Epilepsy Action Australia to rapidly build an Australian patient market through multiple prescribing Australian doctors, at an affordable retail price for patients

• Deal set to generate significant medical cannabis revenues for MXC, expected to be approximately $1m in 2018 from less than 100 patients already registered

• Potential market of +70,000 Australians suffering from drug-resistant epilepsy

• Delivery of the first products to patients set to commence during Q1 2018