LOCAL RESOURCES NATIONAL EXPERTS

pinchin.com | 1.855.PINCHIN Calgary Office 11505 35th Street SE., Suite 111

ELEMENT GP INC. PROJECT OVERVIEW

PROJECT BACKGROUNDELEMENT GP Inc. (ACMPR LP applicant 10-MM1020) has applied to Health Canada to build a state-of-the-art microclimate controlled, vertical grow, cannabis cultivation and extraction facility with automated fertigation, aeroponics, waste water re-use and its own combined heat and power plant. This new 55,000 sq. ft. facility will be built in Clearwater County has an effective grow space of 120,000 sq. ft. and will produce over 30,000 kg of dry cannabis per year, which is converted into approximately 4,300 kg of high quality pure cannabinoid compounds (extracts). The facility will be located on a property that has no abandoned oil wells or pipelines, but is very close to natural gas infrastructure which ELEMENT will utilized to produce low cost electricity. The facility is also situated on low grade land that was not suitable for conventional agriculture but well suited for indoor vertical farming. Foundation construction is expected to commence in Q3/Q4 2018 with facility completion by July 2019.

REGULATORY FRAMEWORKThe project falls within Clearwater County and ELEMENT is seeking a land use bylaw rezoning and subdivision request. The land use rezoning sought is a change from Agricultural District “A” to Light industrial “Li”. In order to consider the application for re-zoning the County requested:

• a geotechnical study;• a traffic impact study;• a water supply study;

• a utility servicing study;• a stormwater management plan; and• an environmental assessment;

In addition to the requirements of the County, ELEMENT has planned their project to be in accordance with:

• The Wildlife Act• The Species at Risk Act• The Migratory Birds Convention Act• The Public Lands Act

• The Water Act• The Environmental Enhancement and Protection Act• The Weed Act

ENVIRONMENTAL ASSESSMENTPinchin performed an environmental assessment of the project area. Wildlife, soils, vegetation, topography, historical resources and water features including wetlands were all assessed. No sensitive wildlife or vegetation features were observed, and there is ample similar habitat in the area so habitat loss is not a significant concern. The only issue discovered was the presence of wetlands. ELEMENT is committed to minimizing environmental impact and in response to the delineation of wetlands on the site they moved their proposed building location to avoid impact to wetlands.

LOCAL RESOURCES NATIONAL EXPERTS

pinchin.com | 1.855.PINCHIN Calgary Office 11505 35th Street SE., Suite 111

ELEMENT GP INC. AMENDED SITING

LAND OVERVIEW GPS FIELD DATA

DATA CONSOLIDATION PROPOSED SITE PLAN