Ann: Quarterly Update and Appendix 4C-MMJ.AX, page-3

MMJ PHYTOTECH LIMITED March 2016 Quarterly Report Strongest Quarter to Date with Significant Developments at All Business Units Highlights  MMPR pre-license inspection completed at Duncan Facility  Lucky Lake MMPR license application now at Security Clearance stage after Health Canada advances it twice in under 30 days  MMJ intends to be first mover in Australian MC market importing existing Satipharm MC products under existing legislation; Marks entrance into Australia with two strategic partnerships  Completed Phase 1 Clinical Trials demonstrate exclusive Satipharm Gelpell CBD Capsules significantly outperform commercially available Sativex®; Worldwide exclusive rights for use of Gelpell with MC-based pharmaceuticals secured Cultivation/Licensing The Marihuana for Medical Purposes Regulations (MMPR) Pre-Licence inspection of United Greeneries’ (UG) Duncan Facility was completed on 3rd February 2016. Completion of Duncan’s Pre-Licence Inspection is the most important milestone passed by the Company to date because, to the Company’s knowledge, every MMPR Pre-Licence inspection previously conducted by Health Canada has subsequently resulted in the issuance of a licence. As UG waits for a response from Health Canada the Company has been preparing for efficient pre-production and ramp-up phases in order to move quickly upon licensing. MMJ expects to receive an MMPR licence to cultivate at Duncan in due course. Additionally, the MMPR licence application of UG’s Saskatchewan-based Lucky Lake Facility advanced to the Enhanced Screening Stage towards the end of the March quarter. Given the large scale of this facility, this is a significant development for MMJ particularly in light of the Federal Government of Canada’s announced plan to legalise recreational cannabis in 2017. Upon approval of its MMPR Licensed Producer application, the Lucky Lake facility will be integrated with the Duncan facility, significantly expanding the Company’s total production capacity. Lucky Lake has a prospective production capacity of ~12,000kg/year of MC and sits on 18 acres of land suitable for low-cost greenhouse expansion. Subsequent to the end of the March quarter, UG was notified by Health Canada that Lucky Lake’s pending MMPR application had progressed again to the Security Clearance Stage. The rapid progression of the application is a very positive sign and a trend that UG believes will continue. All Key Personal in the submitted Lucky Lake application have existing security clearances from the Duncan application. As such, the Company believes the application will be advanced to the Review stage very rapidly.