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Chemesis International Inc. Enters into Definitive Licensing Agreement to Manufacture Proprietary Patent Pending Dragonglass Flake and Bake™ THC Sublingual flake

Corporate Updates

Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)

Chemesis International Inc. Enters into Definitive Licensing Agreement to Manufacture

Proprietary Patent Pending Dragonglass Flake and Bake™ THC Sublingual flake

Puerto Rico-based Natural Ventures Enters into Definitive Licensing and Manufacturing Agreement with Project

1493 to Produce Dragonglass Flake and Bake™ for Puerto Rican Cannabis Market

January 17, 2018

Vancouver, BC – Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or

“Chemesis”), announces its subsidiary Nat ural Ventures has entered into a licensing agreement to

produce Dragonglass Flake and Bake™ (“Dragonglass”) for Project 1493 LLC., a subsidiary of GSRX

Industries, Inc. Dragonglass will be available exclusively at Green Spirit RX dispensaries throughout

Puerto Rico.

GSRX Industries Inc. ( OTCQB: GSRX ), one of Puerto Rico’s largest operators of medicinal cannabis

dispensaries (under the brand name Green Spirit RX), has five medicinal cannabis dispensaries on the

island, located in San Juan -Puerto Nu evo, San Juan -Hato Ray, Carolina, Dorado and Fajardo. These

dispensaries are located in prime areas with large populations that are in close proximity to tourist

centers and hotels. In anticipation of growing demand for cannabis related products including edibles

like Dragonglass, Green Spirit RX also has five additional locations in Puerto Rico expected to be opened

in 2019. The company also holds pre -qualified licenses in Puerto Rico for transportation and at -home

patient delivery. Furthermore, Project 14 93 and Green Spirit RX will lead all marketing efforts in Puerto

Rico to ensure cannabis consumers are educated on Dragonglass and its benefits.1

Dragonglass is made using a multi -patent pending technology that allows consumers to consume

cannabis in a variety of different methods, flavors and colors. The dried activated THC powder or flake is

all natural, and contains zero calories, sugar, fat, alcohols and is 100% vegan. The powder or flake is

produced via a proprietary water -based cannabinoid infusion me thod, which allows users to expect

onset within 7 -15 minutes. Dragonglass will come in a variety of flavors that include mint, cinnamon,

lemon-lime and even Cayenne for cooking. Dragonglass can be administered sublingually, ingested,

micro dosed, and added to foods or drinks.2

“We are tremendously pleased with the agreement to bring Dragonglass to cannabis consumers in

Puerto Rico,” said CEO of Chemesis, Edgar Montero. “Chemesis believes the patent -pending proprietary

technology could revolutionize the indu stry in Puerto Rico with its fast onset and versatile methods of

consumption. Natural Ventures will continue to increase its capabilities to serve the increasing demand

1 Green Spirit

2 Dragonglass

Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)

of Puerto Rico’s cannabis industry.”

Under the agreement, Project 1493 will provide for mulas, equipment, technology, and training to

manufacture Dragonglass at Natural Ventures’ Puerto Rico facility. Under the agreement, Chemesis

International and Project 1493 LLC. have a 50/50 net profit split.

The Company has also drawn down CDN $500,000 from the previously announced CDN $25 million

equity facility from Alumina Partners Ltd., a New York based private equity firm. The Company will issue

384,615 common shares at a price of CDN $1.30 and also issue 384,615 common share purchase

warrants at an exercise price of CDN $2.45 (“Warrants”). Each Warrant is exercisable for one common

share for a period of five years.

On Behalf of The Board of Directors

Edgar Montero

CEO and Director

About Chemesis International Inc.

Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently

operating within California, Puerto Rico, and Colombia.

Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution

and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective

production and distribution of its products. In addition, Chemesis leverages exclusive brands and

partnerships and uses the highest quality extraction methods to provide consumers with quality

cannabis products.

Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently

delivering quality product to its consumers from seed to sale.

Investor Relations:

[email protected]

1 (604) 398-3378

Social Media:

Chemesis.facebook

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Chemesis.instagram

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Forward-Looking Information: This news release contains "forward -looking information" within the meaning of

applicable securities laws relating to statements regarding the Company's business, products and future of the

Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)

Company’s business, its product offerings and plans for sales and marketing, includi ng finalizing an acquisition in

Colombia. Although the Company believes that the expectations reflected in the forward -looking information are

reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to

place undue reliance on forward -looking information. Such forward -looking statements are subject to risks and

uncertainties that may cause actual results, performance and developments to differ materially from those

contemplated by these statements depe nding on, among other things, the risks that the Company's products and

plan will vary from those stated in this news release and the Company may not be able to carry out its business

plans as expected. Except as required by law, the Company expressly disc laims any obligation and does not intend

to update any forward -looking statements or forward -looking information in this news release. Although the

Company believes that the expectations reflected in the forward -looking information are reasonable, there ca n be

no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales

reported. The statements in this news release are made as of the date of this release.

The CSE has not reviewed, approved or disapproved the content of this press release