Grounded Lithium Corp. — Capital/Financing Update 2020

Dec 3, 2020

CANADIAN INTERNATIONAL PHARMA CORP.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Trading symbol: TSX-V – NEX: CIP.H

Canadian International Pharma Corp. Announces Closing of Non-brokered Private Placement

Vancouver, British Columbia – December 2, 2020 – Canadian International Pharma Corp. (the “ Company ”) announces that, further to its News Release of November 4, 2020, it has completed its private placement financing (the “ Financing ”), whereby the Company issued 6,250,000 subscription receipts (each, a “ Subscription Receipt ”) at a price of $0.105 per Subscription Receipt for aggregate proceeds of $656,250.

Each Subscription Receipt entitles the holder to acquire, for no additional consideration, one unit (each, a “ Unit ”) consisting of one Share of the Company and one transferable share purchase warrant (each, a “ Warrant ”) upon TSX Venture Exchange approval for the option agreement (the “ Option Agreement ”) with Longford Capital Corp. and the Financing (the “ Release Condition ”). Each Warrant shall entitle the holder thereof to acquire one Share (each, a “ Warrant Share ”) for a period of five years from the date of issuance thereof at a price of $0.14 per Warrant Share.

The Subscription Receipts will be converted into Units on the date the Release Condition is satisfied. The proceeds of the Financing will be held in trust and will not be released to the Company until the Release Condition has been satisfied. If the Release Condition is not satisfied on or before January 15, 2021, the proceeds of the Financing will be returned to subscribers without interest or penalty, and the Subscription Receipts will be cancelled.

The proceeds of the Financing are expected to be used for general working capital and for the expenditures under the Option Agreement.

All securities issued in connection with the Financing are subject to a statutory hold period expiring four months and one day after closing of the Financing.

An insider of the Company acquired an aggregate of 370,000 Subscription Receipts in the Financing which constituted a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“ MI 61-101 ”). The issuance to the insider is exempt from the valuation requirement of MI 61-101 by the virtue of the exemption contained in section 5.5(b) as the Company’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) as the value of the Subscription Receipts did not exceed 25% of the Company’s market capitalization.

None of the securities sold in connection with the Financing are registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

For further information, contact Ron Schmitz at 604.685.7450.

CANADIAN INTERNATIONAL PHARMA CORP.

“Ron Schmitz”

==> picture [101 x 10] intentionally omitted <==

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.