Lexaria Bioscience Announces Issuance of U.S. Patent for Cannabinoid Infused Edibles Kelowna, BC

Lexaria Bioscience Announces Issuance of U.S. Patent for

Cannabinoid Infused Edibles

Kelowna, BC - October 26, 2016 - Lexaria Bioscience Corp.

(OTCQB:LXRP) (CSE:LXX) (the Company or Lexaria ) is pleased to announce the

U.S. Patent and Trademark Office ( USPTO ) has issued U.S. Patent No. 9,474,725,

Cannabinoid Infused Food and Beverage Compositions and Methods of Use Thereof,

pertaining to Lexaria s method of improving bioavailability and taste of certain

cannabinoid lipophilic active agents in food products.

This is Lexaria s first patent granted or awarded by the USPTO,

and protects the Company s intellectual property related to infusion of

cannabinoid compounds in edible products, which is the primary focus of the

This patent has been issued following the Notice of Allowance

the Company received from the USPTO announced on July 12, 2016, and includes a

set of claims that describe the Company s method of combining a fatty acid

compound with any non-psychoactive cannabinoid for improved bioavailability and

taste performance in both food and beverage formats. This patent issuance has a

priority date of June 10, 2014, a publish date of October 27, 2016, and protects

the Company s technology for twenty years.

This issued patent is only the first in a series of

applications by the Company: Lexaria also has two continuation applications

filed with the USPTO under this issued patent which seek allowance of the

Company s remaining patent claims originally filed thereunder that are still

under pursuit. These claims pertain to additional active agents such as

psychoactive cannabinoids (e.g., Tetrahydrocannabinol or THC), fat soluble

vitamins, non-steroidal anti-inflammatory drugs (NSAIDs) and nicotine.

We are extremely pleased to have received our first patent

protecting our proprietary technology, said Chris Bunka, CEO of Lexaria. I

expect our intellectual property portfolio to continue to expand.

The rapid issuance of this patent is a significant advancement

for our Company, added John Docherty, President of Lexaria. It increases our

confidence in obtaining issuance of further claim sets under our remaining

patents-pending, now that we understand the requirements for successful patent

issuance. It strengthens our ability to negotiate our pending and future

technology out-licensing agreements, now that our intellectual property is

Lexaria has seven other patent applications pending in the U.S.

and internationally and believes it is well positioned for allowance of these

additional patent claim sets. The Company has significantly expanded its

scientific database proving its technology since the original applications were

filed, and is preparing to submit this information to patent examiners. Current

patent-pending applications expand the breadth and variety of dosage formats and

carrier molecules the Company s technology can empower. The Company is in the

process of filing specific international patent applications within the next 60

As previously announced Lexaria has already completed two

definitive agreements and has also entered two Letters of Intent for

out-licensing of the Company s technology. This patent issuance strengthens the

Company s positioning in these deals, and accelerates the potential for

additional future technology out-licensing deals.

Lexaria Bioscience Corp. is a food

biosciences company with a proprietary technology for improved delivery of

bioactive compounds. The Company s lipophilic enhancement technology has been

shown to enhance the bioavailability of orally ingested cannabinoids,

while also masking taste. This technology promotes healthy ingestion methods,

lower overall dosing and higher effectiveness in active molecule delivery. The

Company s technology is patent-protected for cannabidiol (CBD) and all other

non-psychoactive cannabinoids, and patent-pending for Tetrahydrocannabinol

(THC), other psychoactive cannabinoids, non-steroidal anti-inflammatory drugs

(NSAIDs), nicotine and other molecules.

FOR FURTHER INFORMATION PLEASE CONTACT:

Lexaria Bioscience Corp.

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, including but not limited to: any

revenue or license fee payments that may be realized from license agreements,

the introduction of any product lines that are derived from license agreements,

that license arrangements may be entered into with other companies or partners,

that the Company s technology enables higher rates of absorption of certain

molecules such as vitamins and cannabinoids while simultaneously masking and at

times even eliminating inherent strong flavors and/or odors typical of those

molecules, or that the technology will function in a similar manner if tested

with THC, nicotine, or any of the other molecules named in our patent

applications. 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 any

license agreement, 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 granted patent.

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