Lexaria Bioscience Arranges Private Placement Financing to Fund New Laboratory Kelowna, British Columbia

Lexaria Bioscience Arranges Private Placement Financing to

Kelowna, British Columbia October 16, 2018 Lexaria

Bioscience Corp. (OTCQX: LXRP) (CSE: LXX) (the Company or Lexaria ), a drug

delivery platform innovator, announces it has arranged a non-brokered private

placement for gross proceeds of approximately US$1 million.

The financing is comprised of Units priced at US$1.60 each.

Each Unit shall consist of one common share of the Company (a Share ) and one

Share purchase warrant (each Share purchase warrant, a Warrant ). Each Warrant

shall entitle the holder to acquire one common share at a price of US$2.25 per

Share for a period of 24 months following the closing of the financing.

The net proceeds of the financing will be used to fund

construction and development of the Company s new Canadian-based laboratory; to

accelerate Lexaria-developed R and for general corporate purposes.

Lexaria has received building permits to begin renovations

required for a new, larger head office located in Kelowna, Canada. This includes

the construction of a new laboratory that, after submission to Health Canada for

an R&D license and subsequent expected approval in 2019, will become

Lexaria s new headquarters for global R&D across all molecule classes

including restricted substances and non-restricted substances that are still

The Lexaria laboratory will contain certain equipment allowing

for more advanced processes and greatly reduced R&D throughput times

compared to Lexaria s current facilities. This will assist the Company in

maintaining and increasing its leadership position related to intellectual

The financing is subject to certain conditions including, but

not limited to, the receipt of all necessary approvals, including the approval

of the Canadian Securities Exchange and the applicable securities regulatory

authorities. All securities issued will be subject to applicable hold periods in

accordance with Canadian securities laws and will be restricted securities as

defined under the securities law of the United States.

This press release shall not constitute an offer to sell or the

solicitation of an offer to buy nor shall there be any sale of the securities in

any State in which such offer, solicitation or sale would be unlawful. The

securities being offered have not been, nor will they be, 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

the registration requirements of the United States Securities Act of

1933, as amended, and applicable state securities laws.

Lexaria Bioscience Corp. has developed

and out-licenses its disruptive delivery technology that promotes healthier

ingestion methods, lower overall dosing and higher effectiveness of lipophilic

active molecules. Lexaria has eight patents granted in the USA and in Australia

and has filed over 50 patent applications worldwide across ten patent families.

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. www.lexariabioscience.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, including

but not limited to: that any additional stock warrants or stock options will be

exercised. 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. 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 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; or that results from any studies will be favorable or in any way

support future business activities of any kind. Scientific R&D is often

unpredictable and unanticipated results could emerge from any study and have a

material impact as can any results that cannot be reproduced in subsequent

testing. There is no assurance that any planned corporate activity, scientific

study, R&D, business venture, or initiative will be pursued, or if pursued,

will be successful. There is no assurance that any of Lexaria s postulated uses,

benefits, or advantages for the patented and 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). TurboCBDTM,

DehydraTECHTM technology and 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.