Lexaria Receives US$33,029.25 from Exercise of Options and Warrants Kelowna, BC /

Lexaria Receives US$33,029.25 from Exercise of

Options and Warrants

Kelowna, BC / January 10, 2017 / Lexaria Bioscience Corp.

(OTCQB:LXRP) (CSE:LXX) (the Company or Lexaria ) announces it has received

US$33,029.25 from the exercise of stock options and warrants previously

granted. The stock options were exercised at prices from US$0.10 to US$0.2273

for a total of 151,500 common shares being issued. The warrants were exercised

at prices of US$0.15 and US$0.14 for a total of 12,375 common shares being

issued. All options and warrants are being exercised by third parties who are

neither officers nor directors of the Company.

The Company has also issued 500,000 warrants to Correlation

Capital Inc, each warrant valid to purchase one restricted common share at a

price of US$0.44 for a period of one year.

No commissions or placement fees have been paid related to the

funds received from this warrant exercise. Proceeds raised are for general

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 improving 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:

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. 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. 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 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.