Press Release

• New international agreement strengthens Aleafia Health’s global distribution network
• Initial purchase order for 1,000 kg of dried cannabis flower, with fulfilment of order underway
• Apipharm a leading European natural pharmaceutical company with distribution in nine countries

TORONTO, January 8, 2020 – Aleafia Health Inc. (TSX: AH, OTC: ALEAF) (“Aleafia Health” or the “Company”) has entered into a definitive three-year cannabis supply agreement (the “Supply Agreement”) with Apipharm Veletrgovina d.o.o. (“Apipharm”) a leading European pharmaceutical producer and distributor.

Apipharm specializes in the distribution of active pharmaceutical ingredients of plant origin including semi-synthetic cannabinoid isolates, along with the development of advanced pharmaceutical formulations.

Under the terms of the agreement, Aleafia Health will supply Apipharm with dried cannabis flower grown at its Niagara greenhouse facility. Apipharm has also submitted an initial purchase order to Aleafia Health, for 1,000 kg of premium dried flower. The initial purchase order is expected to ship as early as the end of Q1 2021, dependent on the timing of necessary import and export permits.

“It is our great pleasure that we have entered into a partnership agreement with Aleafia which will strengthen our market position in the development of advanced pharmaceutical formulations,” said Dr. Matevz Pompe, CEO of Apiharm.

“We are delighted to open a new international sales channel leveraging the well-established distribution network and expertise of Apipharm,” said Aleafia Health CEO Geoffrey Benic. “Building on our best results to date in the most recent quarter, we will continue to execute on near-term international sales opportunities, fully leveraging our world class Canadian cannabis production assets.”

Aleafia Health Contact:

Nicholas Bergamini, VP Investor Relations
1-833-879-2533
IR@AleafiaHealth.com
www.AleafiaHealth.com

Apipharm Contact:

Dr. Matevz Pompe, CEO
+386 51 618 182
matevz.pompe@apipharm.si
www.apipharm.si

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.