Xylitol Canada Inc. Issues Options

TORONTO, ONTARIO--(Marketwired - Aug. 12, 2016) - Xylitol Canada Inc. (TSX VENTURE:XYL) ("Xylitol" or the "Company") announces that it has approved a grant of incentive stock options (the "Options") to purchase 1,500,000 shares of the Company's common stock, to the directors and officers of the Company as part of their annual remuneration package. The Options shall be exercisable at a price of $0.05 CAD per share, expiring five (5) years from the date of grant.

The Options were granted pursuant to the Company's Stock Option Plan which was approved by shareholders on September 9, 2015.

About Xylitol Canada Inc.

Xylitol Canada operates two (2) business units that address the growing xylose and xylitol markets. Xylitol Canada's consumer packaged goods division is based in Denver Colorado and has grown from under $500,000 in revenue in 2010, to over $8,600,000 in 2014. Xylitol Canada operates a 50,000 square foot xylitol facility where it produces and packages a full catalog of natural sugar free products, most notably its natural sugar alternatives. Through this Denver based facility, the Company services major retail customers such as Loblaws, Whole Foods, Costco, Sprouts, and many others.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.

Neither TSX Venture Exchange Inc. 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.