Lexaria Receives US$737,500 from Exercise of Warrants Kelowna, BC /

Lexaria Receives US$737,500 from Exercise of Warrants

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

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

US$737,500 from the early exercise warrant incentive program announced on

October 27, 2016. This total amount includes US$37,500 that was earlier

announced on November 2, 2016.

A total of 3,245,000 warrants were exercised at US$0.2273 and

the Company is issuing 3,245,000 common shares and 3,245,000 warrants with an

exercise price of US$0.2273 to buy one additional common share, expiring May 14,

2017. These total amounts have been adjusted to account for the December 2015

forward stock split, and include 165,000 warrants and 165,000 common shares

already reported on November 2, 2016.

Lexaria thanks its stakeholders for their continued strong

support as the Company builds its intellectual property portfolio and expands

its commercialization activities in technology out-licensing and product

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 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: 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.

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 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.