Canex Energy Announced Letter of Intent FOR Proposed Acquisition of Cannabis Assets and Update ON Private Placement

CANEX ENERGY CORP.

#1305 - 1090 West Georgia Street

Vancouver, BC V6E 3V7

Tel: 604-685-9316 Fax: 604-683-1585

www.canexenergy.com

January 8, 2019

CANEX ENERGY ANNOUNCED LETTER OF INTENT FOR PROPOSED ACQUISITION OF

CANNABIS ASSETS AND UPDATE ON PRIVATE PLACEMENT

Vancouver B.C., Canex Energy Corp. ("Canex" or the "Company") (NEX Board: CSC.H) is pleased

to announce that it has entered into a non -binding letter of intent (the “LOI”) with Choom Holdings Inc.

(“Choom”) dated December 31, 2018 whereby Canex will purchase Island Green Cure Ltd. and

Medi-Can Health Solutions Inc., both wholly owned subsidiaries of Choom with applications

under the Access to Cannabis for Medical Purposes Regulations and the ir related leasehold

interests.

Canex will pay $100,000 in cash to Choom in addition to issuing 9.8% of the fully diluted, pro forma,

outstanding shares of Canex on closing.

The previously announced private placement on October 12, 2018 has been revised, and the Company

now intends (the "Private Placement") to sell between 5,000,000 to 10,000,000 units ("Units") of the

Company, for gross proceeds between $500,000 to $1,000,000, subject to approval of the NEX Board of

the TSX Venture Exchange (the " NEX"). Each Unit, which will comprise one common share and one -

half of one common share purchase warrant, will be priced at $0.1 0 per Unit. Each whole warrant will

entitle the holder to acquire an additional common share at a price of $0. 15 for a period of 24 months

from the closing date. All shares issued pursuant to the Private Placement will be subject to a hold period

expiring four months and a day following the date of issue. The C ompany may pay finder's fees in

connection with the Private Placement.

To facilitate the transaction between Canex and Choom, the Company wishes to announce the

appointment of Mr. Imre Kovacs as a special advisor to Canex for the evaluation of this transaction and

future trans actions in the c annabis space through 2019. Mr. Kovacs s uccessful ventures in clude

cultivation under Marihuana Medical Access Regulations licensing, value -added cannabis products

development and branding initiatives which led Mr. Kovacs to establish Canada’s first municipally -

licensed medical cannabis dispensary . In addition, Mr. Kovacs is a founding member of Cannabis Trade

Alliance of Canada and a fou nding me mber and director of Ontario Cannab is Consumer and Retail

Alliance, and has a solid business background in production, engineering and retail development.

ON BEHALF OF THE BOARD

Sherman Dahl,

President & CEO

Tel: 250-558-8340

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the

securities described herein in the United States. The securities described herein have not been registered

under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state

securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation

S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and

applicable state securities laws or an exemption from such registration requirements is available.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

This news release includes certain statements that constitute “forward -looking information” within the meaning of

applicable securities law, including without limitation, statements that address the Private Placement, requirements

for additional capital, o ther statements relating to the financial and business prospects of the Company, and other

matters. Forward-looking statements address future events and conditions and are necessarily based upon a number

of estimates and assumptions. These statements relat e to analyses and other information that are based on forecasts

of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that

express or involve discussions with respect to predictions, expectations, belief s, plans, projections, objectives,

assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or

“does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating

that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved),

and variations of such words, and similar expressions are not statements of historical fact and may be forward -

looking statements. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could

cause the actual results, performances or achievements of the Company to be materially different from future results,

performances or achievements express or implied by such statements. Such statements and information are based on

numerous assumptions regarding present and future business strategies and the environment in which the Company

will operate in the future. While such estimates and assumptions are con sidered reasonable by the management of

the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties

and risks.

In particular, there is no guarantee that the Private Placement will be completed as proposed or at all.

Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level

of activity, performance or results to differ materially from those reflected in the forward -looking statements,

including, without limitation: (i) that the Company may not be able to raise additional funds when necessary; (ii)

competition; (iii) the uncertainty of profitability based upon the Company’s history of losses; (iv) risks related to the

outcome of legal actions; (v) risks related to current global financial conditions; and (vi) other risks and uncertainties

related to the Company’s prospects, and business strategy. Accordingly , actual results may differ materially from

those currently anticipated in such statements.

Factors that could cause actual results to differ materially from those in forward looking statements include, but are

not limited to, continued availability of capital and financing and general economic, market or business conditions,

the loss of key directors, employees, advisors or consultants and fees charged by service providers. Investors are

cautioned that forward -looking statements are not guarantees of future performance or events and, accordingly are

cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such

statements. The forward -looking statements included in this news release are made as of the date hereof and the

Company disclaims any intention or obligation to update or revise any forwar d-looking statements, whether as a

result of new information, future events or otherwise, except as expressly required by applicable securities

legislation.