Bedrocan Cannabis Corp. Provides Construction Progress Update and Details of New Canadian Production Facility

52,000 square foot building expected to be world's most technologically-advanced medicinal cannabis production facility

TORONTO, Oct. 7, 2014 /CNW/ - Bedrocan Cannabis Corp. (TSXV: BED) ("Bedrocan" or the "Company") announced today that construction of Bedrocan's new 52,000 square foot production facility, located in the Greater Toronto Area, is advancing as planned and remains on schedule for a year-end inspection by Health Canada. Pending Health Canada's approval, Bedrocan will commence importation and cultivation of live plant material from the Company's Dutch partner Bedrocan BV.

Currently, Bedrocan supplies approximately 1,300 Canadian patients with a choice of five medicinal cannabis strains imported under exclusive license from Bedrocan BV. As initially planned, Bedrocan will transition from its current import strategy to sales of its domestic product once its new Canadian facility is fully operational.

The new facility is expected to be the most technologically-advanced medicinal cannabis growing operation in the world, capable of producing up to 4,000 kg of product annually. The facility will incorporate the proprietary design, software and standardized production techniques developed through 13 years of growing experience by Bedrocan BV. Production will also employ new technologies more advanced than those used at the Netherlands site, and Bedrocan anticipates delivering even higher growth yields than the industry-leading yields already achieved by Bedrocan BV.

World-leading standardization

Bedrocan's new facility will be the only one in the world designed specifically to standardize whole cannabis buds. It will deliver a final product with consistent cannabinoid content that meets the strictest requirements for pharmaceutical-grade cannabis. Along with guaranteed quality control, standardization is a critical requirement for any product used as medicine, to offer patients and physicians the greatest possible consistency and predictability of therapeutic effect in managing the symptoms of health conditions.

"Our objective from the very beginning was to build the world's most advanced production facility in order to provide Canadian patients with the highest quality, fully-standardized medicinal cannabis on a consistent basis," said Marc Wayne, President and CEO of Bedrocan. "When our new facility is operational in 2015, we believe our production, in terms of quality, standardization and yield, will be unmatched by any other producer in Canada or around the world. You simply cannot reach this level of quality in production without controlling every possible variable. This facility will allow us to do just that."

Additional details of the new facility:

• It will harvest and process a fresh crop every week, 52 weeks per year.
• Production rooms are designed to harvest up to seven crops in the same space each year, without the use of pesticides.
• Production rooms are designed and automated so that growers rarely, if ever, need to enter until crops are harvested. This virtually eliminates the possibility of exposure to bacteria, molds and other potential contaminants, and results in lower operating costs.
• It will include new climate control technologies, which are expected to further increase yields on a per square meter basis beyond what is currently achieved at the Bedrocan BV facility.
• It will include smart inventory control and storage systems which allow for demand-driven adjustments in growth and production in a timely way, ensuring continuous and uninterrupted supply.
• It will include a unique two-storey, level 9 security vault, allowing for strict operational and quality separation between bulk storage of dry product and storage of retail product packaged for the patient end-user.
• The upper retail level will feature multiple positive-pressure pharmaceutical clean rooms where the harvested product is packaged for delivery.

About Bedrocan

Bedrocan and Bedrocan BV are leaders in medicinal cannabis research and product innovation and have been producing and supplying government-regulated medicinal cannabis for 13 years. Bedrocan's strains of pharmaceutical-grade cannabis have been used by more than 20,000 patients in seven countries, including Canada. The company is committed to clinical research with ISO 9001-rated production processes and product development, on an international scale. Bedrocan is one of only two companies currently supplying pharmaceutical-grade medicinal cannabis in Canada. Bedrocan Cannabis Corp. trades on the TSX Venture Exchange under the symbol "BED". www.bedrocan.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Bedrocan Cannabis Corp.

Cam Battley, Bedrocan Cannabis Corp., [email protected], +1.905.864.5525, www.bedrocan.ca; Investor Relations: Jennifer Wood, TMX Equicom, [email protected], +1.416.815.0700, ext. 226