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Pharmadrug Inc.

| May 27, 2020, 9:21 PM EDT

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Israeli Government in Discussions on Medical Cannabis Export Framework & Appointment of New Board Member

Toronto, Ontario--(Newsfile Corp. - November 19, 2019) - Pharmadrug Inc. (CSE: BUZZ) (OTC: LMLLF) (the "Company" or "Pharmadrug") would like to update investors on developments from Israel's Ministry of Health regarding the export law on medical cannabis passed in January of 2019 (the "Export Law"). It was revealed late last week that the Israeli Ministry of Health (the "Ministry") will soon be publishing its cannabis export guidelines, which will enable the commencement of exports to international markets, most notably Germany and other European Countries. In a statement to the Israeli High Court, the Ministry said, "For the Ministry of Health, any business that meets the standard for local production and marketing will be able market its products abroad." As a reminder (see press release dated September 19, 2019), Pharmadrug has signed a multi-year supply agreement with My Greenfields, a nursery and cultivation license holder in Israel. Under the terms of the agreement, My Greenfields will provide Pharmadrug with up to 2,000 kg of medical cannabis per annum for the German and European markets.

Daniel Cohen, Pharmadrug's CEO, commented, "We are pleased to see the Ministry committed to opening the corridor for medical cannabis exports in a timely manner. We remain confident that the new law will take effect sometime early in 2020. While the majority of Israel's cannabis production is done in greenhouses, My Greenfields has nearly completed one of the country's only indoor growing facilities and we are confident the product will yield a premium over Israeli greenhouse grown cannabis."

As well, the Company is pleased to announce the appointment of Nikolai Vassev to its board of directors, subject to regulatory approval. Mr. Vassev has strong pedigree in public markets and is a psychedelics industry pioneer. The Company believes Mr. Vassev will be instrumental is finding opportunities in whole plant-based products for Europe. Unfortunately, Alain Dobkin was required to resign from Pharmadrug's board due to a conflict of interest after accepting a senior position at an international investment bank in Israel. Mr. Cohen, continued, "We thank Alain for his contribution to our board and we look forward to having Nikolai's expertise to help us broaden our product offering in Europe."

About Pharmadrug Inc.

Pharmadrug is building a vertically integrated cannabis business focused on Europe and Israel. The Company (i) owns 80% of Pharmadrug Production GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU, (ii) owns a convertible note convertible into 54% of the outstanding equity of HolyCanna Ltd., a cultivation and nursery license holder in Israel, and (iii) has an agreement to acquire 57% of CannabiSendak Ltd., the builder of a network of dispensaries in Israel. Additionally, through significant extraction IP, the Company is dedicated to building a high margin, downstream business of end-user products.

For further information, please contact:

Daniel Cohen, CEO
dcohen@pharmadrug.co
(647) 202-1824

David Posner, Chairman
(647) 985-6727

Caution Regarding Forward-Looking Information:

THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results of Pharmadrug. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include reference to Pharmadrug's ability to import supply from My Greenfields and distribute additional cannabis once available and potential revenue therefrom, the timing of the receipt of the additional cannabis supply coinciding with any changes in the current supply shortages in the German market, Pharmadrug's ability to increase supply of cannabis and expand into additional European Union markets with new products, the roles of Canada and Israel as a major supplier of medical cannabis, and the ability of the Company to building a high-margin, downstream business of end-user products. There is no certainty that any of these events will occur. Although such statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances.

The Company's securities have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. Persons", as such term is defined in Regulation S under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press 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 the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.

Additionally, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein, such as, but not limited to dependence on obtaining regulatory approvals; the ability to locate additional supply of medical cannabis, owning interests in companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history, reliance on management, requirements for additional financing, competition, hindering market growth; regulatory and political change.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/49838

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