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Agraflora Organics and Cabbay Holdings Corp. Sign Supply Agreement for High-CBD Cannabis Plants in 2019

Agraflora Organics International Inc.'s (formerly PUF Ventures Inc.) (the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF) joint venture, Propagation Services Canada, has executed its first propagation supply agreement with Alta-Sun Samson Holdings Corp., a wholly owned subsidiary of Cabbay Holdings Corp. The agreement calls for Propagation Services Canada to supply high-CBD (cannabidiol) cannabis plants for a five-acre outdoor grow operation near Edmonton, Alta.

"Having the ability to acquire high-quality propagation plants for our outdoor cannabis operation near Edmonton, Alta., is a significant advantage for our business," said Andrew Morin, head grower, Alta-Sun Samson Holdings Corp., and son of the former Chief of Enoch Cree Nation. "We can focus our efforts on the growing the highest-quality cannabis for our primary customers without the overhead of planting and propagating our own cannabis seedlings. The timeline for Agraflora's retrofit of their large-scale greenhouse works well with our application for a cultivation licence and we look forward to a long and mutually beneficial partnership with Agraflora and Propagation Services Canada."

"With the first phase of the retrofit of the 2.2-million-square-foot greenhouse complex scheduled for completion mid-2019, we are taking the necessary steps of establishing a customer base for our medical cannabis flower and propagating plants," said Derek lvany, president and chief executive officer, Agraflora Organics International. "Cabbay Holdings is Propagation Services Canada's first propagation customer and follows on the recently announced medical cannabis supply agreement with Namaste Technologies. Two thousand nineteen is shaping up to be a banner year for Agraflora and we will continue to expand the pipeline of premium customers for our high-quality cannabis products."

Cabbay Holdings Corp.'s 100-per-cent-owned subsidiary, Alta-Sun Samson Holdings Corp., has a lease on a five-acre site on Enoch Cree Nation land near Edmonton, Alta., and potential to increase the growing area to 160 acres in 2020, where it intends to develop an outdoor cannabis cultivation facility and will apply for a standard cultivation licence under the Cannabis Act in Canada.

Propagation Services Canada is a joint venture company in the process of retrofitting a large-scale greenhouse complex in Delta, B.C. The fully financed retrofit of the 2.2-million-square-foot complex is to be completed in three phases:

–­         Phase 1 includes the retrofit of 350,000 square feet, including 100,000 postproduction facilities, completion scheduled for the second quarter of 2019.

–­         Phase 2 includes an additional 1.45 million square feet to be completed by the fourth quarter of 2019.

–­         Phase 3 consists of 400,000 square feet scheduled for completion in the second quarter of 2020.

The Delta greenhouse complex includes advanced growing systems for greenhouse HVAC (heating, ventilation, air conditioning), watering and lighting. It includes it own natural gas cogeneration energy plant which provides cost-effective electricity for lighting and heating of the large-scale greenhouse. The result is a highly efficient operation and one the most cost-effective growing operations in the industry.

About Agraflora Organics International Inc.

Agraflora Organics International is a growth-oriented and diversified company focused on the international cannabis industry. It has ownership in several cannabis companies including AAA Heidelberg and Propagation Services Canada in Canada, and is actively pursuing other opportunities within the cannabis industry. Agraflora Organics has an option to purchase 100 per cent of AAA Heidelberg, a licensed producer under the Access to Cannabis for Medical Purposes Regulations.

ON BEHALF OF THE BOARD OF DIRECTORS

Derek Ivany

President & CEO

For additional information:

AgraFlora Organics International Inc.

E: ir@agraflora.com

T: (778) 945-0348

No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.