Lexaria Bioscience and Hill Street Beverage Company Announce Definitive Agreement for Cannabis-Infused Beverages Kelowna, British Columbia and Toronto, Ontario

Lexaria Bioscience and Hill Street Beverage Company Announce

Definitive Agreement for

Cannabis-Infused Beverages

Kelowna, British Columbia and Toronto, Ontario July 31,

2018 Lexaria Bioscience Corp. (OTCQX: LXRP; CSE: LXX; the Company or

Lexaria ), a drug delivery platform innovator, and Hill Street Beverage Company

Inc., (TSXV:BEER; Hill Street ) jointly announced that they have signed a

Definitive Agreement to license Lexaria s DehydraTECHTM, on a

semi-exclusive basis, for a term of five (5) years, to produce a line of

cannabis-infused alcohol-free beverages for Canadian distribution, following

regulatory approval. The Definitive Agreement is the conclusion of the process

begun following the announcement of the non-binding letter of intent in April 2018. Terms of the Definitive

Agreement were not disclosed.

US$56,250 (CDN$ 73,497), representing a portion of the

compensation payable to Lexaria, shall be paid and satisfied in common shares in

the capital of Hill Street, at a purchase price of CDN$0.175, for an aggregate

of 419,982 common shares (the Compensation Shares ). The issuance of the

Compensation Shares is subject to regulatory approval, including without

limitation, the approval of the TSX Venture Exchange.

Lexaria s beverage formulation adaptations use patented

technology to act quickly, but without adding any taste or odour, thereby

delivering predictable experiences that dissipate more quickly than many other

cannabinoid edible products. Lexaria has already lab-tested Hill Street s

alcohol-free red and white wines to formulate cannabinoid-fortified wines, and

such tests show virtually zero cannabis taste or odour.

Hill Street CEO, Terry Donnelly, stated, Our goal is to

provide traditional beer and wine drinkers with great tasting products that use

cannabis to mimic the onset and duration of effect that has historically come

from alcohol, but without alcohol s toxicity and added calories. While the early

versions of our wines infused with Lexaria s process have shown great promise,

we are extremely excited about the progress Lexaria continues to make with their

infusion technologies. Lexaria has already demonstrated its importance to our

model as a key strategic partner in our business, and this agreement secures our

future together. As Hill Street s progress into producing the world s finest

alcohol-free and cannabis-infused beverages continues, Lexaria has demonstrated

that they will continue to innovate and improve on their process. This will help

to ensure Hill Street is always at the forefront of producing world-class wine,

beer and other adult format beverages.

Chris Bunka, CEO of Lexaria stated, Hill Street s

award-winning and great-tasting wines and beers need an odourless and tasteless

infusion process like our powerful DehydraTECHTM platform to ensure

they will remain that way after the inclusion of cannabis. Our proven ability to

render full spectrum cannabis and hemp oil into a water-soluble ingredient with

no impact on the taste and smell of complex beverages like wine enables Hill

Street to produce adult format beverages that will give consumers the

recreational experience of cannabis, while enjoying tastes and experiences

consistent with consuming traditional wine, beer and other adult format

About Lexaria Bioscience Corp. (OTCQX: LXRP) (CSE:

Lexaria Bioscience Corp. licenses disruptive patented delivery

technology that promotes healthier ingestion methods, lower overall dosing and

higher effectiveness of lipophilic active molecules. Lexaria has multiple

patents pending in over 40 countries around the world and has patents granted

in the USA and in Australia for utilization of its

DehydraTECHTM delivery technology. Lexaria s technology provides increases in

intestinal absorption rates; more rapid delivery to the bloodstream; and

important taste-masking benefits, for orally administered bioactive molecules

including cannabinoids, vitamins, non-steroidal anti-inflammatory drugs

(NSAIDs), nicotine and other molecules.

For regular updates, connect with Lexaria on Twitter https://twitter.com/lexariacorp

and on Facebook https://www.facebook.com/lexariabioscience/

FURTHER INFORMATION PLEASE CONTACT:

Lexaria Bioscience Corp.

Blanchard, Communications Manager

About Hill Street Beverage Company Inc. (TSXV:BEER)

Founded in 2008, Hill Street Beverage Company is the world's most

award-winning company exclusively focused on alcohol-free beer, wines, and adult

format beverages. Hill Street products include: Vin(Zero) wines, Vintense wines,

Hill Street Craft Brewed Lager, and Designated Draft beer. Hill Street s

award-winning products have won the Retail Council of Canada's Grand Prix, and

numerous medals and accolades including three Gold, two Silver, and two Bronze

Medals at the U.S. Open Beer Championships, and a prestigious Double Gold Medal

at the San Francisco International Wine Challenge. As a result of the Royal

Assent of Canada s Bill C-45, legislation to allow the sale of cannabis-infused

beverages is to occur by October 17, 2019. Hill Street is currently applying for

appropriate licenses to permit the production and sale of cannabis infused

beverages in Canada, with the view of having infused products available for sale

once the regulations permit.

For further information:

Chairman and CEO, Hill Street Beverage Company Inc.,

terry@hillstreetbevco.com, (416) 543-4904;

Gareth Tingling, Investor

gareth@sophiccapital.com, (647) 797-0219

Follow Hill Street on Twitter https://twitter.com/hillstreetbevco

and on Facebook http://facebook.com/hillstreetbevco

FORWARD-LOOKING STATEMENTS

includes forward-looking statements. Statements which are not historical facts

are forward-looking statements. Any references made by either company mentioned

in this press release regarding forward-looking public statements concerning

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," project , "intend," "may," "could," "should,"

"will," and other similar expressions are forward-looking statements, including

but not limited to: that any additional patent protection will be realized or

that patent achievements will deliver material results. Such forward-looking

statements are estimates reflecting either company s best judgment based upon