Filed by newsfilecorp.com Lexaria Closes Financing, Enhances Investor Relations Agreement Kelowna, BC /

Lexaria Closes Financing, Enhances Investor Relations

Kelowna, BC / August 11, 2016 / Lexaria Bioscience Corp.

(OTCQB:LXRP) (CSE:LXX) (the Company or Lexaria ) announces it has closed the

private placement equity financing announced July 5.

The financing was for 1,558,525 equity units priced at US$0.06;

each equity unit consisting of one common share of the Company and one

non-transferable share purchase warrant, each warrant entitling the holder to

purchase one additional common share of the Company for a period of two years

from the date of issuance, at a purchase price of US$0.14; in order to raise

gross proceeds of US$93,511.50 (the "Private Placement"). After the issuance of

these shares, the Company will have 48,021,811 shares issued and outstanding.

All funds raised of US$93,511.50 will be used to continue

deployment and marketing of hemp based food products, for investor relations,

and for G&A and general working capital.

The securities issued will be subject to a hold period in

Canada of four months and one day, or for any resales into the USA under Rule

144, six months and one day. The Private Placement is subject to normal

regulatory approvals. An insider of the Company subscribed for US$27,000.

Lexaria also announces it has enhanced the existing services of

Frontier Merchant Capital Group ( Frontier ) with a head office in Toronto,

Canada for a cost of US$35,931.50 for new services provided over the one-year

contract. Frontier will continue to assist the Company by increasing market

awareness utilizing a number of financial market communication initiatives. The

core of these will be facilitating in-person introduction for the Company with

institutional and retail brokers and investors in cities across Canada, the US,

and potentially Europe.

The securities referred to herein will not be or have not

been registered under the United States Securities Act of 1933, as amended, and

may not be offered or sold in the United States absent registration or an

applicable exemption from registration requirements.

Lexaria s unique patent pending technology allows for more

effective absorption of certain molecules such as vitamins and cannabinoids,

while simultaneously masking and at times even eliminating inherent strong

flavours and/or odors. Lexaria s technology is extremely cost effective to

implement and applicable to a wide spectrum of foods, capsules, and beverages.

Lexaria Bioscience Corp. is a food sciences company focused on

the delivery of active compounds that can behave as superfoods through its

proprietary infusion technologies. Lexaria s technology enables higher

bioavailability rates for CBD; THC; NSAIDs; Nicotine and other molecules than is

possible without lipophilic enhancement technology. This can allow for lower overall dosing requirements and/or higher effectiveness

in active molecule delivery. Lexaria hopes to reduce other common but less

healthy ingestion methods such as smoking as it embraces the benefits of public

health. www.lexariaenergy.com

FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements. Statements

which are not historical facts are forward-looking statements. The Company makes

forward-looking public statements concerning its expected future financial

position, results of operations, cash flows, financing plans, business strategy,

products and services, competitive positions, growth opportunities, plans and

objectives of management for future operations, including statements that

include words such as "anticipate," "if," "believe," "plan," "estimate,"

"expect," "intend," "may," "could," "should," "will," and other similar

expressions are forward-looking statements. Such forward-looking statements are

estimates reflecting the Company's best judgment based upon current information

and involve a number of risks and uncertainties, and there can be no assurance

that other factors will not affect the accuracy of such forward-looking

statements. Access to capital, or lack thereof, is a major risk and there is no

assurance that the Company will be able to raise required working capital.

Factors which could cause actual results to differ materially from those

estimated by the Company include, but are not limited to, government regulation,

managing and maintaining growth, the effect of adverse publicity, litigation,

competition, the patent application and approval process and other factors which

may be identified from time to time in the Company's public announcements and

filings. There is no assurance that the hemp oil sector or alternative health

businesses will provide any benefit to Lexaria, or that the Company will

experience any growth through participation in these sectors or as a result of

the license agreement. There is no assurance that existing capital is sufficient

for the Company's needs or that it will be able to raise additional capital.

There is no assurance that Lexaria will successfully complete any other

contemplated or existing technology license agreements, nor that Lexaria s

technology will deliver any improvement in taste or bioavailability with any

reliability nor across any product category. There is no assurance that any

planned corporate activity, business venture, or initiative will be pursued, or

if pursued, will be successful. There is no assurance that any hemp oil or

cannabinoid-based product will promote, assist, or maintain any beneficial human

health conditions whatsoever, nor that any patent application in the USA or any

other nation or under any treaty will result in the award of an actual patent;

nor that an award of any actual patent will protect against challenges from

unknown third parties. There is no assurance that any of Lexaria s postulated

uses, benefits, or advantages for the patent-pending technology will in fact be

realized in any manner or in any part. No statement herein has been evaluated by

the Food and Drug Administration (FDA). ViPovaTM products are not

intended to diagnose, treat, cure or prevent any disease.

The CSE has not reviewed and does not accept responsibility

for the adequacy or accuracy of this release.