SugarBud Craft Growers Corp. provided an update regarding the completion of its 29,800 square foot vertical cannabis cultivation facility at Stavely, Alberta (the "Facility") and its retail strategy. SugarBud has completed the construction of the Facility's exterior and inner walls, including the installation of key electrical, plumbing and mechanical equipment (the "Base Building"), and occupancy of the Facility is expected in February, 2019. The Company anticipates that it will receive a cultivation license from Health Canada by the end of first quarter of 2019. Upon the receipt of a cultivation license, SugarBud will commence cultivation in its first two partially equipped grow rooms. The Company will then begin to equip the remaining six flowering rooms, capital permitting, until the entire Facility is in full production. SugarBud plans to have Phase 1 in full production by the end of 2019. Phase 1 of the Facility is comprised of 29,800 total square feet of floorplate, including eight 2,150 square foot cannabis flowering rooms totaling 17,500 square feet of floorplate. The ceilings of the flowering rooms are 28' tall, allowing for up to four layers of flowering canopy in each grow room. SugarBud estimates that under a full development scenario with four layers of flowering canopy, Phase 1 of the Facility will have up to 37,000 square feet of flowering canopy. At a metric of 50 grams per square foot of flowering canopy per crop, and five crops per year, this equates to up to an estimated 9,500,000 grams of dried cannabis flower production per year. SugarBud's vertical grow method with four layers of flowering canopy is anticipated to result in a 211% flowering canopy to flowering floor plate ratio. This high utilization of square footage maximizes revenue per square foot of floor plate and minimizes capital costs per square foot of flowering canopy. For reference, if SugarBud were to utilize a single layer of flowering canopy, it's flowering canopy to flowering floor plate ratio would reduce to 53%. Phase 2 of the Facility is estimated to be comprised of 12 additional flowering rooms totaling approximately 26,000 square feet of floorplate, up to 55,500 square feet of flowering canopy, and up to an estimated 14,000,000 grams of dried flower production per year (at the same 50 grams per square foot of flowering canopy per crop, and five crops per year).