Supreme Provides Update on Okanagan Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 29, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Supreme Pharmaceuticals Inc. ("Supreme" or the "Company") (CNSX:SL) today announced that it has been advised by one of its partners, the operator of a producing medical marijuana facility in the South Okanagan, that Health Canada has rejected the current site of the facility for licensing under the Marijuana for Medical Purposes Regulation ("MMPR") as a result of its proximity to a small number of residential buildings. The Company, in consultation with its partner and advisors, remains of the view that the site meets the criteria set forth by Health Canada with respect to acceptable locations and zoning, and is investigating its options.

"Although this represents a short-term setback for Supreme in British Columbia, as acknowledged in our September news release the Company remains focused on the development of our flagship project in Kincardine, Ontario," stated Supreme CEO, David Stadnyk. "Construction of the Kincardine facility is progressing as expected and the Company anticipates a pre-license inspection by Health Canada in November 2014."

Supreme acquired an option to purchase the business associated with the South Okanagan Facility in April 2014, in consideration for $150,000 in cash and $100,000 in common shares of the Company at a deemed price of $0.05 per share. The option is exercisable until April, 2015.

This press release is not an offer of the Units, or the underlying Common Shares and Warrants, for sale in the United States. The Units may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from such registration. The Company has not registered and will not register the Common Shares and Warrants underlying the Units under the U.S. Securities Act of 1933, as amended. The Company does not intend to engage in a public offering of Units in the United States.

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 any state in which such offer, solicitation or sale would be unlawful.

FORWARD LOOKING INFORMATION

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to the pre-licensing inspection by Health Canada, as well as the Company's corporate strategy. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company's ability to carry out its business plan following the rejection of the required licenses for the South Okanagan facility by Health Canada. Although management of the Company believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the Company's ability to identify and complete additional suitable acquisitions to further the Company's growth as well as risks associated with the medical marijuana industry in general such as operational risks in development and production delays or changes in plans with respect to development projects or capital expenditures; the uncertainty of the capital markets; the uncertainty of receiving the required licenses, production, costs and expenses; health, safety and environmental risks; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of the potential market; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and related regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.