Lifestyle Delivery Systems Inc. (CSE:LDS), (LDSYF) and ( Frankfurt : LD6, WKN: A14XHT) (“LDS” or the “Company”) announces that on January 16, 2018 , the Mojave Desert Air Quality Management District (“MDAQMD”) issued a permit to LDS Scientific, Inc., to operate under the Temporary Category M Type 7 Manufacturing with Volatile Solvents License. The Permit is valid through June 2018 , at which time the facility and its operations will be reviewed by MDAQMD. Upon a favorable review the permit can be renewed for one year. Brad Eckenweiler , CEO of LDS, stated, “There are benefits to being a first mover, however there are also challenges.” Just prior to the year-end, the Company was notified that the MDAQMD, an environmental agency of the State of California , would require a permit for operating under the CSPA Group Inc.’s Type 7 – Manufacturer 2 for Medical Cannabis Volatile Extraction License #00000001. LDS Scientific completed the application with requested calculation and usage projections and upon submission to the MDAQMD and were informed that the review time is normally six to eight weeks.

The Company explained our concerns with regards to the facilities employees having been out of work all December during the holidays hoping to be back at work in January and that any help on expediting the permit review process would be sincerely appreciated. The Mojave Desert Air Quality Management District staff went above and beyond our expectations and five business days after our submission issued the required permit. Unfortunately, that day the Company also received notification from the San Bernardino County Fire Department that they have decided to amend their previous facility approval to require additional fire sprinklers in the three extraction rooms. The additional sprinkler modifications and their integration into the alarm systems and atmosphere warning systems were completed Saturday afternoon and the confirmation of the completion was emailed to the San Bernardino County Fire Department inspector. During the time we were working on the MDAQMD permit the Company modified the extraction equipment to improve efficiencies and reduce maintenance time.

Those improvements were certified for safe operation. Mr. Eckenweiler continued his comments, “We are in a new industry where the governing bodies, enforcement agencies and legislators alike are feeling their way through numerous health, safety, commercial, financial and accountability issues. These uncertainties will likely continue to produce challenges for everyone in this industry and LDS will continue to meet those challenges as it develops a corporate foundation not for the short term but for the future.”  The Company is in production and will have details for its shareholders at the Company’s Annual General Shareholders Meeting. The Company will provide audio highlights of the AGM on the website.