• Contract Manufacturing Organization first in Europe to License DehydraTECH
• Lexaria will receive milestone fees and royalty payments from product sales

Lexaria Bioscience Corp. (Nasdaq:LEXX) (Nasdaq:LEXXW) (the "Company" or "Lexaria"), a global innovator in drug delivery platforms is pleased to announce the awarding of a European and United Kingdom ("UK") DehydraTECH license for medical cannabis applications from Lexaria Pharmaceutical Corp. to Valcon Medical A/S ("Valcon").

Valcon Medical is a European contract manufacturing organization ("CMO"), specialized in the manufacturing of medical cannabis extracts for the European Union ("EU") and the UK. Valcon is GMP certified and licensed under the Danish medical cannabis program to manufacture cannabis products that require physician-patient consultation.

Valcon products will span non-registered medical products through magistral programs, country-level market-authorized medical cannabis products through pilot programs, and country and/or EU Commission registered medical cannabis products. These products include bulk powders or solid oral dosage forms including, but not limited to, powder-filled capsules, compressed tablets, pills, oral melts, and topical creams and lotions with or without patch integration.

The non-exclusive license includes a combination of defined milestone fees payable to Lexaria upon completion of batch validation and marketing authorization application approvals for the first DehydraTECH-enabled products completed by Valcon for each of several product categories it shall pursue, together with defined royalties payable to Lexaria on revenues generated from Valcon's product sales.

"We are very excited to have licensed Lexaria's DehydraTECH technology for what we expect will be rapid growth across the European markets," said Pete Patterson, CEO of Valcon Medical A/S. "As Valcon continues to build out its manufacturing capabilities we are developing new IP and partnering with industry leaders. Lexaria has developed and patented an incredible technology which will benefit medical cannabis patients with enhanced bioavailability with a quicker effect onset. Backed by substantial clinical efficacy studies, Valcon will bridge the extensive work that Lexaria has done in the US, over to Europe."

Lexaria notes the potential for growth in utilization of DehydraTECH across these European markets given the advanced technical capabilities of Valcon, and their business focus on providing CMO services to a wide spectrum of companies active in the EU.

About Valcon Medical A/S

Founded in 2018, Valcon Medical is the most advanced medical cannabis manufacturer in its field in Europe and leads the cannabis industry in manufacturing capacity and production of the highest quality full spectrum extracts and API cannabinoid isolates. Valcon Medical is supported by a shareholder group comprised of some of the leading cannabis investment funds in the world, including Altitude Capital, Artemis Growth Partners, Enexis AB, Greenfield Global Opportunities, and Nimb Capital.

About Lexaria Bioscience Corp.

Lexaria Bioscience Corp.'s patented drug delivery technology, DehydraTECH™, improves the way active pharmaceutical ingredients (APIs) enter the bloodstream by promoting more effective oral delivery. Since 2016, DehydraTECH has repeatedly demonstrated the ability to increase bio-absorption with cannabinoids and nicotine by 5-10x and, in some instances with cannabinoids by as much as 27x compared to standard industry formulations, reduce time of onset from 1 - 2 hours to minutes, and mask unwanted tastes; and is also being evaluated for orally administered antiviral drugs, non-steroidal anti-inflammatory drugs (NSAIDs), PDE5 inhibitors and more. DehydraTECH has also evidenced an ability to deliver some drugs more effectively across the blood brain barrier. Lexaria operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 25 patents granted and over 50 patents pending worldwide. For more information, please visit www.lexariabioscience.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements. Statements as such term is defined under applicable securities laws. These statements may be identified by words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions. Such forward-looking statements in this press release include, but are not limited to, statements by the company relating the Company's ability to carry out research initiatives, receive regulatory approvals or grants or experience positive effects or results from any research or study. 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 the Company will actually achieve the plans, intentions, or expectations disclosed in these forward-looking statements. As such, you should not place undue reliance on these forward-looking statements. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation and regulatory approvals, managing and maintaining growth, the effect of adverse publicity, litigation, competition, scientific discovery, the patent application and approval process, potential adverse effects arising from the testing or use of products utilizing the DehydraTECH technology, the Company's ability to maintain existing collaborations and realize the benefits thereof, delays or cancellations of planned R&D that could occur related to pandemics or for other reasons, and other factors which may be identified from time to time in the Company's public announcements and periodic filings with the US Securities and Exchange Commission on EDGAR. 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-associated products are not intended to diagnose, treat, cure or prevent any disease. Any forward-looking statements contained in this release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise, except as otherwise required by law.

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