Lexaria Enters Loan Agreement Kelowna, BC /

Lexaria Enters Loan Agreement

Kelowna, BC / July 25, 2016 / Lexaria Bioscience Corp.

(OTCQB:LXRP) (CSE:LXX) (the Company ) is entering a loan agreement for the

principal amount of US$50,000.

The term of the agreement is 15 months, with an interest-free

holiday for the first 3 months: if the loan is repaid within 3 months no

interest will be due. For the final 12 months of the term, Lexaria will pay 8%

simple interest. This secured loan is not convertible.

The loan is provided by CAB Financial Services Ltd, which is a

private holding company wholly-owned by the CEO of the Company. The Company will

use the proceeds of this loan for general working capital purposes.

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.

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: that

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

that the Company s technology will prove to be beneficial to third parties or to

generate revenue for the Company. 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 engagement of consultants or participation in 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. There is no assurance that existing capital is sufficient for the

Company's needs. 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

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.