2017-07-06 09:43 ET - News Release

Mr. Jagdip Bal reports

UMBRAL ACMPR APPLICANT PHYEINMED PREPARES TO EXPAND TO OVER 420,000 SQUARE FEET

Umbral Energy Corp.'s late-stage applicant under the ACMPR (access to cannabis for medical purposes regulations), PhyeinMed Inc., has begun planning and preparations to build a 420,000-square-foot cannabis production facility consisting of two buildings on 13 acres of land in Falkland, B.C.

On May 26, 2017, Health Canada released a bulletin updating the application stages, increasing production based on vault size and providing applicants the opportunity to expand current application sites with less regulation. Health Canada sent requests to applicants to identify their readiness to start construction, increase production and to identify expansion plans. These two events have allowed the company to immediately begin expansion preparations.

The expansion plan includes two buildings and four phases of construction. The first phase is a building envelope of 130,000 square feet. The second phase is the second-level completion of equal square footage, bringing the total of the first building to 260,000 square feet. The second building, first floor phase 3 construction, is 80,000 square feet. The fourth and final phase of construction of the second level completes the 420,000-square-foot expansion plans. Once the entire project is completed and licensed, it has the potential to produce over 110,000 kilograms of cannabis per year or over $500-million annually.

The current facility is a 15,500-square-foot warehouse retrofit. With the recent events regarding changes allowed within the Health Canada application process, the company is constructing a second level of the current warehouse, increasing the grow capacity by an additional 5,000 square feet from the original application of 10,500 square feet. A state-of-the-art retrofit of the existing warehouse utilizing a hybrid hydroponic aeroponic grow method will increase annual production to 3,700 kilograms of dry cannabis or over $25-million annually. Oil extraction will commence upon issuance of a production/sale licence.

PhyeinMed is pleased with the recent regulation changes, updates and additional resources added to the application process and continues with construction plans of its current facility.

About Umbral Energy Corp.

Umbral Energy has a mineral exploration project in Quebec. In addition, the company has an interest in PhyeinMed, which has applied for a licence from Health Canada to legally grow and sell medical marijuana.

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