KADI Botanical Inc. News May 25 2019

Hello KADI Botanical Inc. Shareholders

Great news!

We have received the first examiners report from the international patent examiner on our PCT patent application for the CEPE system, it is really great news, and we are really pleased to share with you.

All 47 of our patent claims have been classified as Novel, and all claims are being classified as Inventive Steps, and also as all being Industrially Applicable, over any known existing botanical extraction processes.

This is in fact a very unusual result, since to have claims rejected on the initial international examination is reasonably expected and a normal result.

Any claim in a patent application must meet all three of these classifications to be acceptable and to be included in the issued patent.

This result virtually guarantees a very strong patent will be granted, which is a highly valuable and sought after asset in the industry.

As a result of the examiners findings, our patent attorneys have recommended entering the National Phase immediately, under the accelerated PPH program (Patent Process super-Highway), which we have elected to do.

The PPH program is reserved for patent applications that are clearly new art and have no prior art to compete with, which can result in patent granting in less than a year. In many cases the normal patent process can take 5 or more years to complete. The early entry in the National Phase will result in immediate publication of our patent application. Once that occurs a link will be provided and any interested parties will be able to review our patent application showing exactly how our technology works.

We have also previously submitted independent patent applications to countries not included in the Patent Cooperation Treaty (in their local languages), where we believe there is significant value in protecting our technology; these countries include Taiwan, Jamaica, Lebanon, Pakistan, and particularly Uruguay.

Also check out the website at www.kadibotanical.com

Best Regards:

KADI Botanical Inc.

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