ForImmediateRelease

CanniMedtoAcquireUpCannabisInc.(NewstrikeResourcesLtd.TSX-V:HIP)toCreateaPremierGlobalCannabisCompany

TransactionHighlights

Combiningtheleadingmedicalbrandandahighprofilerecreationalbrandtocreateapremierglobalcannabiscompany

Wellpositionedtoofferinnovative,highqualityproductswithtwotoptierdistinctbrandsuniquelypositionedtoaddresskeyproducttrendsandemergingdriversofgrowthinbothmarketsegments

CanniMedandUpCannabiswillleverageinfrastructureandexpertiseacrossbothplatformstodrivestrongsynergisticvaluewhilefocusingonbeingleadersintheirdistinctmarkets,withbest-in-classproductionandmarketingpractices

Expectedtobeaccretive(beforesynergies)onkeymetricsby2019 TheTragicallyHipremainintimatelyinvolvedasshareholdersandactiveparticipantsinthe

creationandsupportoftheUpCannabisbrand Significantlyimprovesoperationalscalewithatargeted45,000kgofcapacityby2019and

marketbreadth Improvedcapitalmarketspresencewithapro-formacapitalizationexceeding$500mm Newstrikeshareholderstoreceive33.0CanniMedsharesforeach1,000sharesofNewstrike

Saskatoon,SK&Oakville,ONNovember17,2017:CanniMedTherapeuticsInc.(TSX:CMED)(CanniMed)andNewstrikeResourcesLtd.(TSX-V:HIP)(Newstrike)arepleasedtoannouncethattheyhavereachedadefinitiveagreement(theArrangementAgreement)pursuanttowhichCanniMedwillacquirealloftheoutstandingsharesofNewstrike(theArrangement),parentcompanyofUpCannabisInc.(UpCannabis),alicensedproducerofcannabisundertheAccesstoCannabisforMedicalPurposesRegulations(ACMPR).

Thisisatransformationalstrategicacquisitionforourcompany,whichwillpositionCanniMedandUpCannabistogetheraspremiumplayersintheemergingrecreationalcannabismarketplace,whileequallystayingtruetoourmandatetoprovidethebesttreatmentandcaretomedicalpatients,saidBrentZettl,PresidentandCEO,CanniMed.Together,werecognizetheimportanceofbrandloyaltyandwillcontinuetobuildproducts,programsandresourcestoshowcaseourleadershipinthecannabisarena.

JayWilgar,PresidentandCEOofUpCannabis,stated:ThisisawatershedmomentforUpCannabisaswepreparefortheopeningoftherecreationalcannabismarketopportunityin2018.ThisbusinesscombinationwithCanniMedpositionsourcollectiveteamasaclearmarketleader,andwewillworktirelesslytoensurethatwekeepbuildingabrandandproductofferingthatresonatesunequivocallywiththemarket.

TheArrangementwillbebywayofaplanofarrangementpursuanttowhicheachNewstrikeshareholderwillreceive0.033CanniMedsharesinexchangeforeachNewstrikeshareheld.SubsequenttoclosingoftheArrangement,thecurrentCanniMedshareholderswillowninaggregateapproximately65percentofthecombinedentityandtheNewstrikeshareholderswillinaggregateownapproximately35percentofthecombinedentity.

CompletionoftheArrangementissubjecttotheapprovalofshareholdersofbothcompaniesatspecialmeetingsoftheshareholdersofeachcompany.Newstrikewillrequiretheapprovalof662/3percentoftheshareholdersthatvote,bypersonorinproxyatthemeeting,aswellasasimplemajorityoftheshareholdersthatvote,bypersonorinproxy,atthemeeting,excludingcertaininsiders.CanniMedwillrequiretheapprovalofasimplemajorityoftheshareholdersthatvote,bypersonorinproxy,atthemeeting.BothcompanieswillbecommunicatingthetimingandconductofthosemeetingswhichareexpectedtobescheduledforearlyJanuary2018.ClosingofthetransactionisanticipatedtooccurinJanuary2018.

ArrangementSummary

TheArrangementAgreementprovidesthatNewstrikeshareholderswillbeentitledtoreceive0.033commonsharesofCanniMedforeachNewstrikecommonshareheld,representingconsiderationofapproximatelyC$0.505perNewstrikecommonsharebasedontheclosingpriceofCanniMedcommonsharesonNovember14,2017.UponclosingoftheArrangement,Newstrikewillbecomeawholly-ownedsubsidiaryofCanniMed.

TheArrangementAgreementprovidesthatbothpartiesaresubjecttonon-solicitationprovisionsandprovidesthattheboardofbothcompaniesmay,undercertaincircumstances,terminatetheArrangementinfavourofanunsolicitedsuperiorproposal,subjecttothepaymentofaterminationfeeofC$5millionbyNewstriketoCannMedorC$9.5millionbyCanniMedtoNewstrike,asthecasemaybe.Inaddition,theArrangementAgreementincludesprovisionsprovidingforexpensereimbursementofupto$600,000fromonepartytotheotherintheeventthattheagreementisterminatedundercertaincircumstances.

TheArrangementAgreementprovidesthatonclosingoftheArrangement,theboardofdirectorsofthecombinedentitywillincludetwopersonswhowillbenominatedbyNewstrike.Inaddition,certainshareholdersofNewstrikewillbeentitledtonominatetwopersonstotheCanniMedboardofdirectorsatits2018annualshareholdersmeetingandwillhavearighttonominateonepersontotheboardateachannualmeetingforsolongastheyholdatleast10percentoftheoutstandingCanniMedshares.

UnderapplicableTSXrules,thetransactionrequirestheapprovalofCanniMedshareholdersbyamajorityvote,asthenumberofCanniMedcommonsharestobeissuedexceeds25percentofthetotalnumberofoutstandingCanniMedcommonshares.

ClosingremainssubjecttoapprovaloftheshareholdersofbothCanniMedandNewstrike,courtapproval,theapprovaloftheTSX,applicableregulatoryapprovalsandthesatisfactionofcertainotherclosingconditionscustomaryintransactionsofthisnature.

TheArrangementAgreementcontainsothercustomaryrepresentations,warranties,covenantsandconditionstoclosing.AdditionaldetailsoftheArrangementisexpectedtobeprovidedtoNewstrikeandCanniMedshareholdersinrespectiveinformationcircularstobemailedinlate2017.

BoardRecommendations

ThedefinitiveagreementhasbeenapprovedbytheBoardofDirectorsofeachofCanniMedandNewstrikeandtheBoardseachrecommendthattheirrespectiveshareholdersvoteinfavouroftheArrangement.

FinancialandLegalAdvisors

AltaCorpCapitalInc.isactingasfinancialadvisortoCanniMedandhasprovidedafairnessopiniontotheCanniMedBoardofDirectorswithBordenLadnerGervaisLLPactingaslegaladvisortoCanniMed.CormarkSecuritiesInc.hasprovidedafairnessopiniontotheCanniMedBoardofDirectors.

TheAuroraProposal

OnNovember15,2017,CanniMedissuedapressreleaserespondingtoapressreleasefromAuroraCannabisInc.(Aurora)regardingitsintentiontomakeanunsolicitedofferforallofCanniMedsshares.Sincethedateofthatpressrelease,AurorahasnotmadeaformalofferforCanniMedsshares.

Asnoformalofferhasbeenmade,CanniMedcontinuestoadviseshareholderstotakeNOactionwithrespecttotheunsolicitedproposal.

InmakingitsrecommendationtoshareholderstovoteinfavouroftheArrangement,theBoardofDirectorsofCanniMedconsidered,amongotherthings,thefollowing:

(i) theNewstrikeacquisitionisaccretiveandisahighlystrategicentryintotherecreationalcannabismarket;

(ii) thetermsofanyAuroraofferareunknown,whereasthetransactionwithNewstrikehasbeenfullynegotiatedandcontainsonlyreasonableconditionstoclosing.

CanniMedwillrespondtotheAuroraproposalifaformalofferismade.

ConferenceCallInformation

CanniMedandNewstrikewillhostaconferencecallandawebcastaccompaniedbyslidestodiscussthetransactiononMonday,November20,2017at10:00AMEST.Analysts,investorsandmediaareinvitedandwelcometoparticipate.AdvisorywithcontactinformationwillfollowMondaypre-market.

AboutCanniMedTherapeuticsInc.

CanniMedisaCanadian-based,internationalplantbiopharmaceuticalcompanyandaleaderintheCanadianmedicalcannabisindustry,with16yearsofpharmaceuticalcannabiscultivationexperience,state-of-the-art,GMP-compliantproductionprocessandworldclassresearchanddevelopmentplatformswithawiderangeofpharmaceutical-gradecannabisproducts.Inaddition,theCompanyhasanactiveplantbiotechnologyresearchandproductdevelopmentprogramfocusedontheproductionofplant-basedmaterialsforpharmaceutical,agriculturalandenvironmentalapplications.

CanniMed,throughitssubsidiaries,wasthefirstproducertobelicensedundertheMarihuanaforMedicalPurposesRegulations,thepredecessortothecurrentAccesstoCannabisforMedicalPurposesRegulations.ItwasthesolesuppliertoHealthCanadaundertheformermedicalcannabissystemfor13years,andhasbeenproducingsafeandconsistentmedicalcannabisforthousandsofCanadianpatients,withnoincidentofproductdiversionorrecalls.

Formoreinformation,pleasevisitourwebsites:www.cannimed.ca(patients)andwww.cannimedtherapeutics.com(investors).

AboutNewstrikeandUpCannabis

NewstrikeistheparentcompanyofUpCannabis,alicensedproducerofcannabisthatreceiveditscultivationlicenseonDecember19,2016.Newstrike,togetherwithitsstrategicpartners,isdevelopingadiversenetworkofhighqualitycannabisbrands.Formoreinformationvisitwww.up.caorwww.newstrike.ca.

NoticeRegardingForwardLookingStatements

Thisnewsreleasecontainsforward-lookingstatements.Forward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherfactorswhichmaycausetheactualresults,performanceorachievementsofCanniMedandNewstriketobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedorimpliedbytheforward-lookingstatements.Theseforward-lookingstatementsinclude,butarenotlimitedto,statementsrelatingtoourexpectationswithrespectto:thetimingandoutcomeoftheproposedacquisitionofalltheissuedandoutstandingcommonsharesofNewstrike;thetermsofanyformalofferbyAurora;theanticipatedbenefitsofthetransactiontothepartiesandtheirrespectivesecurityholders;impactofthetransactionandenhancedinfrastructureonproductioncapabilities;andtheanticipatedtimingofthemeetingofCanniMedandNewstrikeshareholderstoconsiderthetransactionandfortheclosingofthetransaction.Often,butnotalways,forward-lookingstatementscanbeidentifiedbytheuseofwordssuchasplans,expectsordoesnotexpect,isexpected,estimates,intends,anticipatesordoesnotanticipate,orbelieves,orvariationsofsuchwordsandphrasesorstatethatcertainactions,eventsorresultsmay,

could,would,mightorwillbetaken,occurorbeachieved.Inrespectoftheforward-lookingstatementsandinformationconcerningtheanticipatedbenefitsandcompletionoftheproposedtransactionandtheanticipatedtimingforcompletionofthetransaction,CanniMedandNewstrikehaveprovidedsuchstatementsandinformationinrelianceoncertainassumptionsthattheybelievearereasonableatthistime,includingassumptionsastothetimerequiredtoprepareandmailsecurityholdermeetingmaterials;theabilityofthepartiestoreceive,inatimelymannerandonsatisfactoryterms,thenecessaryregulatory,courtandshareholdersapprovals;theabilityofthepartiestosatisfy,inatimelymanner,theotherconditionstotheclosingofthetransaction;andotherexpectationsandassumptionsconcerningthetransaction.Therecanbenoassurancethattheproposedtransactionwilloccur,orthatitwilloccuronthetermsandconditionscontemplatedinthisnewsrelease.Theproposedtransactioncouldbemodified,restructuredorterminated.Accordingly,readersshouldnotplaceunduerelianceontheforward-lookingstatementsandinformationcontainedinthispressrelease.

Sinceforward-lookingstatementsandinformationaddressfutureeventsandconditions,bytheirverynaturetheyinvolveinherentrisksanduncertainties.Actualresultscoulddiffermateriallyfromthosecurrentlyanticipatedduetoanumberoffactorsandrisks.Readersarecautionedthattheforegoinglistoffactorsisnotexhaustive.Additionalinformationonotherfactorsthatcouldaffecttheoperationsorfinancialresultsofthepartiesareincludedinreportsonfilewithapplicablesecuritiesregulatoryauthorities.

Theforward-lookingstatementscontainedinthisnewsreleasearemadeasofthedateofthisreleaseand,accordingly,aresubjecttochangeaftersuchdate.CanniMedandNewstrikedonotassumeanyobligationtoupdateorreviseanyforward-lookingstatements,whetherwrittenororal,thatmaybemadefromtimetotimebyusoronourbehalf,exceptasrequiredbyapplicablelaw.

NoneoftheTorontoStockExchange,TSXVentureExchangeandtheirRegulationServicesProvidersacceptresponsibilityfortheadequacyoraccuracyofthisrelease.

CompletionoftheArrangementissubjecttoanumberofconditions,includingbutnotlimitedto,TSXVandTSXacceptanceandifapplicable,disinterestedshareholderapproval.Whereapplicable,theArrangementcannotcloseuntiltherequiredshareholderapprovalisobtained.TherecanbenoassurancethattheArrangementwillbecompletedasproposedoratall.

Investorsarecautionedthat,exceptasdisclosedinthemanagementinformationcirculartobepreparedinconnectionwiththeArrangement,anyinformationreleasedorreceivedwithrespecttotheArrangementmaynotbeaccurateorcompleteandshouldnotbereliedupon.TradinginthesecuritiesofNewstrikeandCanniMedshouldbeconsideredhighlyspeculative.

TheTSXVentureExchangehasinnowaypasseduponthemeritsoftheproposedtransactionandhasneitherapprovednordisapprovedthecontentsofthisnewsrelease.

Formoreinformationpleasecontact:

CanniMedTherapeuticsInc.

MediaContactDaraWillisdhw@cannimed.com416-836-9272

InvestorRelationsinvest@cannimed.com

UpCannabis

MediaContactPMRendonpm@newstrike.ca416-301-2391

InvestorRelationsIR@newstrike.ca