Lexaria Receives US$98,000 from Exercise of Options and Warrants Kelowna, BC /

Lexaria Receives US$98,000 from Exercise of Options and

Kelowna, BC / January 26, 2017 / Lexaria Bioscience Corp.

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

US$98,004.05 from the exercise of stock options and warrants previously

granted. The stock options were exercised at prices of US $0.14 and US$0.2273

for a total of 191,000 common shares being issued. The warrants were exercised

at prices of US$0.14, US$0.15 and US$0.2273 for a total of 407,500 common shares

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

are neither officers nor directors of the Company.

No commissions or placement fees have been paid related to the

funds received from this warrant exercise. Proceeds will be used 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

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 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

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 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.