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Canada – Telkwa, B.C.

Maple Leaf has leased 30 acres of land with the option to purchase from Woodmere Nursery Ltd. The company is currently constructing a 27,500 sq. ft. cannabis production facility in Telkwa, B.C. Phase I capacity is projected at 5,400 kgs (11,500 lbs) of dried cannabis. The potential expansion for Phase II is up to 80,000 sq. ft. The facility is anticipated to produce pesticide-free, top-quality cannabis and cannabis oil utilizing biodynamic technology.

Maple Leaf has contracted Calgary-based, MMP Structural Engineering Ltd., for project management, procurement, & engineering and Rethinking Construction for construction of the site.

Rethinking uses RC’s Canna-Shield™ system, which offers a factory manufactured panelized building solution using Canadian Construction Materials Centre (“CCMC”) certified magnesium oxide (“MgO”) board. The Canna-Shield™ product offers fire, water, mold, impact, and insect resistance, ideal for the cannabis industry.

Using the factory manufactured panels, combined with the Rethinking system, construction times may be reduced by up to 80% as compared to traditional construction methodologies.

Maple Leaf is currently in “Active Review” status with the ACMPR. The anticipated completion of the facility is in August 2018.

It is expected that the annual demand for cannabis will reach 52,000 kgs (115,000 lbs) in British Columbia in 2018.

[Figures are forward looking].