CANN GROUP LIMITED — Capital/Financing Update 2018

Aug 14, 2018

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ASX ANNOUNCEMENT

15 AUGUST 2018

First Australian patients prescribed with Aurora medical cannabis through Cann Group

15 August 2018 – Cann Group Limited (ASX: CAN) has supplied the first Australian patients with Aurora cannabis oil through the Therapeutic Good Administration’s (TGA) Special Access Scheme.

Cann Group as sponsor imported the first products from its strategic partner and major shareholder Aurora, with the product supplied being ‘Aurora 1:1 Drops’ comprising an equal ratio of THC and CBD.

Cann will be importing additional supplies of cannabis oil from Aurora in several different formulations.

Patients will have access to the medicinal cannabis oils after having been approved for treatment through the TGA’s Special Access Scheme or Authorised Prescriber Scheme.

Cann Group CEO Peter Crock said the supply of product to patients in Australia marks an important milestone in Cann’s plans to be a fully integrated medicinal cannabis company.

“Our arrangements with Aurora ensure we are in a position to supply safe, high quality medicinal cannabis products to patients in need, while we continue to execute on our plans to develop our own local product manufacture.

For further information please contact: Peter Crock Matthew Wright Cann Group Limited NWR Communications +61 (0) 3 9095 7088 +61 (0) 451 896 420 contact@canngrouplimited.com matt@nwrcommunications.com.au

About Cann Group

Cann Group is building a world-class business focused on breeding, cultivating and manufacturing medicinal cannabis for sale and use within Australia. The company has established research and cultivation facilities in Melbourne and is striving to provide access to medicinal cannabis for Australian patients. Cann Group has executed collaboration agreements that will enable it to establish a leading position in plant genetics, breeding, extraction, analysis and production techniques required to facilitate the supply of medicinal cannabis for a range of diseases and medical conditions. It was issued with Australia’s first medicinal cannabis research licence in February 2017, in addition to Australia’s first medicinal cannabis cultivation licence in March 2017. Aurora Cannabis Inc – one of Canada’s largest listed medicinal cannabis company – is a cornerstone investor in Cann, with a 22.9% shareholding.

About Aurora

Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 570,000 kg per year and sales and operations in 14 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.

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Highly differentiated from its peers, Aurora has established a uniquely advanced, consistent and efficient production strategy, based on purpose-built facilities that integrate leading-edge technologies across all processes, defined by extensive automation and customization, resulting in the massive scale production of high quality product at low costs. Intended to be replicable and scalable globally, these production facilities are designed to produce cannabis of significant scale, with high quality, industry-leading yields, and low per gram production costs. Each of Aurora’s facilities is built to meet European Union (EU) GMP standards, and both its first production facility and its wholly owned European medical cannabis distributor Pedanios have achieved this level of certification.

In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 10 companies acquired – MedReleaf, CanvasRX, Peloton Pharmaceutical, Pedanios, H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, and Anandia – Aurora is distinguished by its reputation as a partner of choice and employer of choice in the global cannabis sector, having invested in and established strategic partnerships with a range of leading innovators, including: The Green Organic Dutchman Holdings Ltd. (TSX: TGOD), Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Namaste Technologies Inc. (TSXV: N), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).

Aurora's Common Shares trade on the TSX under the symbol "ACB", and are a constituent of the S&P/TSX Composite Index.

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