Lexaria Option and Warrant Exercise and Issuance Kelowna, BC /

Lexaria Option and Warrant Exercise and Issuance

Kelowna, BC / November 2, 2016 / Lexaria Bioscience Corp.

(OTCQB:LXRP) (CSE:LXX) (the Company or Lexaria ) announces existing warrant

and option exercises.

The Company has received payment from one person of US$12,500

to exercise 55,000 stock options at a price of US$0.2273 each. The Company has

received payment from one person of US $37,504.50 to exercise 165,000 warrants

at a price of US$0.2273 each, and the warrant holder is receiving 165,000

replacement warrants with an exercise price of US$0.2273 each and expiring May

14, 2017, under the recently announced early warrant exercise incentive

The Company has issued 500,000 warrants to consultant Adam

Mogil, each warrant valid to purchase one new common share at a price of US$0.31

with an expiration date of May 31, 2017.

The securities issued will be subject to a hold period for any

resales into the USA under Rule 144, of six months and one day. The warrant

issuance is subject to normal regulatory approvals.

No commissions or placement fees will be paid in the event that

any or all of the warrants are exercised. Use of proceeds from any warrants that

are exercised will be general corporate purposes.

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 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

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 new definitive agreement will be reached to

license the Company s technology to any third party in return for compensation.

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). Lexaria Energy Foods 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.