Lexaria Signs Master Collaborative Research Agreement Kelowna, BC /

Lexaria Signs Master Collaborative Research Agreement

Kelowna, BC / February 8, 2017 / Lexaria Bioscience Corp.

(OTCQB:LXRP) (CSE:LXX) ( the Company or Lexaria ), through its wholly owned

Canadian subsidiary Lexaria Canpharm Corp., has signed and entered a master

collaborative research agreement with the National Research Council of

Canada (NRC) to investigate technical aspects and new opportunities

associated with bioavailability enhancement of lipophilic active ingredient

Lexaria believes that results from this scientific

collaboration could motivate license adoption of Lexaria s patented flavour

masking and nutrient delivery enhancement technology, including but not limited

to the vitamin, pain reliever and nicotine sectors. Lexaria s technology is

patented in the US, and patent pending in Canada and in 41 other countries

Under the agreement, Lexaria and the National Research Council

will both provide up to CDN$125,000 in funding for this research, a total

investment of up to $250,000. The master research agreement has an 18-month

term, during which a number of shorter-term studies will be undertaken. The

collaboration will investigate and define the chemical nature of the molecular

association that Lexaria`s patented technology is believed to effectuate between

lipophilic active agents and fatty acids as solubility and bioavailability

enhancing agents. Effective delivery of lipophilic active agents spans across

industry sectors such as, food, vitamins, pharmacy and more, which are

multi-billion dollar opportunities.

Prospective lipophilic active agents to be investigated under

the research agreement include cannabinoids (e.g., cananbidiol CBD and

tetrahydrocannabinol THC ), fat soluble vitamins, non-steroidal

anti-inflammatory drugs ( NSAIDs ) and nicotine, as described in Lexaria`s

issued and pending patent applications as well as potentially other high value

bioactives to be determined. The research agreement also provides for possible

licensing of any arising, non-competing Lexaria intellectual property to NRC or

its sub-licensees on terms to be defined in the future as applicable.

This co-funded research agreement with the National Research

Council of Canada is a major achievement for us, said John Docherty, President

of Lexaria Bioscience Corp. Having the privilege to work within their high

caliber facilities alongside their expert scientists will allow Lexaria to

further advance the characterization and commercial potential of its technology

in the fastest way possible for a company of our size. Furthermore, the fact

that they have a Level 2 dealer`s licensed facility in Canada in which some of

this work can be conducted is of particular importance, thereby allowing us to

advance research on controlled substances with ease.

The National Research Council s support in the development and

commercialization of our technology is highly validating for our Company , said

Chris Bunka, CEO of Lexaria Bioscience Corp. Positive findings from this joint

investigation will be of tremendous value to Lexaria in order to broaden the

scientific understanding of our intellectual property suite and support our

abilities to attract additional strategic licensees across the greater

therapeutic foods, dietary supplements and pharmaceutical sectors.

Lexaria intends to commercialize its technology for widespread

use by markets throughout the world, including over the counter pain remedy

sector, vitamins and food supplements, and even the nicotine industries and

more. To achieve that, this undertaking of fundamental research will enhance the

Company s ability to enter into these distinct market sectors.

Additional information will be released regarding completion of

the joint research initiatives to be conducted under this research agreement as

they are confirmed and available.

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. www.lexariabioscience.com

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. 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 the master collaborative research agreement

with the National Research Council of Canada 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 agreement. 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