Delta 9 Cannabis Inc. announce it has entered into a non-binding letter of intent (LOI) with Westleaf Cannabis Inc. to create a strategic partnership for the joint development of a large-scale cannabis production facility located in Southern Alberta (the "Project"). Pursuant to the terms of the LOI, Delta 9 and Westleaf will each own a 50% equity interest in the Project. The Project includes the retrofit of an existing building intended to be equipped to produce approximately 4,000 kilograms of premium dried cannabis flower per annum, and an extraction lab for the production of cannabis oil and derivative products.

Delta 9 anticipates designating the Project as an expansion facility under its existing Access to Cannabis for Medical Purposes Regulations ("ACMPR") license. The Project is expected to be operational as early as the third quarter of 2018 and is intended to supply cannabis products to the Alberta medical and recreational markets. The completion of the Project remains subject to a number of conditions including, among other things: the execution of a definitive, binding agreement between Delta 9 and Westleaf; the parties obtaining the debt and equity financing required to complete the Project; and the completion of due diligence regarding the Project by Delta 9 and Westleaf.