Aleafia Health Secures Niagara Facility Cultivation Licence

TORONTO, March 16, 2020 – Aleafia Health Inc.’s (TSX: ALEF, OTC: ALEAF) (“Aleafia Health” or the “Company”) wholly owned subsidiary, Aleafia Farms Inc., has secured a Health Canada Cultivation Licence (the “Licence”) for the Company’s Niagara Production Facility (the “Niagara Facility”), located in Grimsby, Ont.

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“This is an important and long-awaited breakthrough for Aleafia Health. We can now fully leverage our supply chain across three completed, licensed production facilities,” said Aleafia Health CEO Geoffrey Benic. “The Niagara Facility provides both near term, stable inventory for our health and wellness sales channels, and the inputs needed for the 2020 outdoor cultivation season.”

The Facility features a highly advanced, automated, moving container bench system, which allows for a perpetual, year-round harvest. Capital investments made in automated cultivation and quality assurance systems will assist in reducing both costs and execution risk. It will be used as a staging ground for the Company’s planned 2020 outdoor cultivation at its Port Perry Facility. Starter plants will be grown on-site and transported to Port Perry at the beginning of the outdoor cultivation season, significantly reducing planting-to-harvest lead times.

The Niagara Facility’s perpetual harvest offsets seasonal fluctuations in inventory inherent in outdoor cultivation and will ensure, consistent, standardized input material for medical and adult-use sales channels. The Licence, granted on March 13, 2020 after markets closed, expires on March 13, 2023 and authorizes cannabis cultivation, propagation, harvesting and sales in Building 1.

Building 1 includes 50,000 sq. ft. of greenhouse area and 20,000 sq. ft. for post-cultivation operations, including drying, storage and shipping and will also be used to support outdoor cultivation. The Company expects to submit a Licence amendment application to Health Canada in the next 30 days to authorize production in the remaining 90,000 sq. ft. of greenhouse area.

For Investor & Media Relations:

Nicholas Bergamini, VP Investor Relations

1-833-TSX-ALEF (879-2533)

IR@AleafiaHealth.com

LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.

Aleafia Health owns three significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.

Innovation, the heart of Aleafia Health’s competitive advantage, has led to the Company maintaining a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value; the TSX Venture Exchange named Aleafia the 2019 top performing company prior to its graduation to the TSX.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.