Lexaria Bioscience Corp. LXRP:US | LXX:CSE Drug Delivery - PowerPoint PPT Presentation

Lexaria Bioscience Corp. LXRP:US | LXX:CSE Drug Delivery Platform Innovator Corporate Presentation November 2019 LexariaBioscience.com 1

Disclaimer This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, evaluation of medical marijuana projects, alternative health projects or products, and cannabidiol-fortified products or services for participation and/or financing, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions that are forward-looking statements. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements including, without limitation, foreign exchange and other financial markets; changes of the interest rates on borrowings; whether or not the Company will be successful in executing its business plan in whole or in part; hedging activities; changes in commodity prices; changes in the marketing or capital project expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which Lexaria Corp. operates. These and other risks and uncertainties are more fully described in our periodic reports and other disclosure documents filed by Lexaria Corp. from time to time with regulatory authorities available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov, and the reader is encouraged to review these documents. Planned dates stated herein are estimates only, based on best information available. Dates are not assured and are subject to revision without notice. The Company assumes no obligation, except as required by law, to update any forward-looking statement, whether as a result of new information, future events or otherwise. This presentation is not an offer to sell or a solicitation of an offer to buy securities of Lexaria Bioscience Corp. It is a short summary of certain information for introductory purposes only and is not to be relied upon for investment purposes. No statement within has been evaluated by the Food and Drug Administration, and no product or service is intended to diagnose, treat, cure or prevent any disease. 2 2

Lexaria Bioscience – Corporate Highlights ▪ Lexaria out-licenses its disruptive patented technology platform for fast, flavorless & more effective oral drug delivery as a healthier alternative to common consumer product formats such as smoking/vaping: ▪ Nicotine, Cannabinoids, NSAIDs, Fat-Soluble Vitamins, PDE5 Inhibitors ▪ Introducing Lexaria’s patented DehydraTECH ™ : ▪ DehydraTECH’s dehydration processing reaction changes how the body detects and absorbs drugs; ▪ Faster onset/offset and higher bioavailability in capsules, foods, liquids, mixable powders, etc.; ▪ Also tested in topical product formats with faster/higher bioabsorption rates; and ▪ 16 patents granted (>60 pending) covering method-of-use , composition-of-matter and medical treatment claims ▪ Partnered with Altria Group to disrupt the $990 billion global nicotine market ▪ Up to $12 million Altria-funded R&D partnership & license to develop oral nicotine consumer products ▪ 8 existing cannabinoid (THC, CBD) licensees utilizing DehydraTECH ▪ Also applicable to fat-soluble vitamins, NSAIDs (Ibuprofen, Aspirin) and PDE5 Inhibitors (Viagra, Cialis) Lexaria is initally focused on disrupting the $990B nicotine and $14B cannabis markets 3

DehydraTECH – Patented Technology Benefits Increases Masks unwanted Increases Simple and Improves brain taste bioavailability cost effective speed of onset absorption Competitive with Animal testing Easy to implement Eliminates the Effects are felt within less healthy confirms up to need for sugar- 10-20 min (vs. 60-120 methods like 19x improvement filled edibles. min). inhalation Patented technology changes how Active Pharmaceutical Ingredients (APIs) enter the body orally 4

How Does DehydraTECH ™ Work? Process: Results: 1) Combine API and Fatty Acid Oil Fatty acids are believed to block and shunt bound APIs away from bitter + taste receptors* Lipids enable gastric e.g.: ∆ 9 -THC LCFA: sunflower oil protection and rapid 2) Apply to food/carrier particles passage** Small intestine quickly absorbs LCFAs into lymphatics ∆ 9 -THC e.g.: sorbitol, gum Arabic, etc. (bypassing first 3) Perform dehydration procedure 11-OH-THC pass liver effect) and Colloidal Complex MCFAs via the 4) Render as powder or liquid nanoemulsion liver*** suitable for use in desired final form factor *Coupland & Hayes (2014). Pharm Res. Nov 31(11); 2921-2939 API = Active Pharmaceutical Ingredient **Soehngen et al., (1998). Arthritis & Rheumatism. Vol 31, No. 3. LCFA = Long Chain Fatty Acid; MCFA = Medium Chain Fatty Acid 5 ***Iqbal & Hussain (2009). Am J Physiol Endocrinol Metab. Jun;296(6);E1184-94.

Form Factor Flexibility 6 6

Nine Corporate Licensees and Counting… Company Substance Territory Term Category Estimated Operations Launch Altria Ventures Inc. Nicotine USA Indefinite Oral Products TBD Nukas’ CBD/Hemp USA 10-Year Beverages Q2/2020 1906-Brands Unamed CBD/Hemp USA 5-Year Beverages Q4/2019 Universal Hemp CBD/Hemp USA and Canada 5-Year Dry food ingredients Q1/2020 Nic’s Beverages CBD/Hemp USA 5-Year Beverages Q4/2019 Hill Street Beverage CBD/Hemp Global except Mexico 10-Year Beverages Q2/2000 Hill Street and Lexaria JV CBD/Hemp Global except Mexico 10-Year Multiple Q2/2020 Cannfections Cannabis Canada 7-Year Chocolates and Candies Q2/2020 Nuka’s 1906-Brands Cannabis OH, IL, MA, CO, MI 10-Yesr Candies, Chocolates, Q4/2019 Beverages Unamed Cannabis California 5 Year Beverages Q4/2019 Hill Street Beverages Cannabis Global except Mexico 10-Year Beverages Q1/2020 Hill Street and Lexaria Joint Cannabis Global 10-Year Multiple Q2/2020 Venture Except Mexico 7

Cannabinoids | THC | CBD Oral Delivery 8 8

Non-Flower Consumption Continues To Gain Market Share US FLOWER VS. NON-FLOWER CONSUMPTION CANADA: CANNABIS SOLD TO CLIENTS IN 2018 (kgs) 4406 4124 4310 4391 4455 3734 Colorado Oregon California Non- 34 38 41 46 46 flower 56 56 57 60 Market 66 share % 62 59 54 54 44 44 43 40 Apr May Jun Jul Aug Sept Flower Cannabis Oil 3734 4406 4124 4310 4391 4455 2014 2015 2016 2017 Q1 Q1 '17 Q1 '18 Jan '18 April '18 Dried Cannabis 2354 2310 2103 2151 2069 1755 2018 KEY INSIGHTS AND LEXARIA’S SOLUTION Key Insights Lexaria’s Solution 1. Trend away from cannabis smoking 1. DehydraTECH ™ improves alternate delivery methods 2. Trend to limit dosage in edibles 2. DehydraTECH ™ improves cannabinoid absorption 3. Trend towards beverages and edibles 3. DehydraTECH ™ spans foods, beverages, nutritional supplements and more Sources: colorado.gov, bdsanalytics.com and canada.ca 9 9

DehydraTECH TM for Cannabinoids - Faster and More Effective Delivery Methods of Cannabinoid Consumption CASE STUDY: TurboCBD ™ - Lexaria’s Oral CBD Product 1. Inhalation • High bioavailability (~32%), harmful to Lungs • 90mg DehydraTECH dose vs. Competitor 100mg dose • 2. Sub-lingual (under tongue) Competitor delivers virtually zero CBD at 30 minutes • • Medium bioavailability (~16%), foul taste Lexaria quicker “on” and quicker “off” 3. Oral – Gastrointestinal Tract Faster onset • Low bioavailability (~3-5%), sugar filled to D 90mg PTL101 - 100mg and offset; Plasma concentration (ng/mL) mask taste 60 higher peak concentration 50 40 DehydraTECH TM (Oral Technology) 30 Transforms the way cannabinoids enter the 20 bloodstream through the gastrointestinal tract 10 • Fast Acting 0 0 30 60 90 120 150 180 210 240 300 360 420 480 • Improved Taste Time (min) • Increased Bioavailability Pharmacokinetic comparison of the ingestion of DehydraTECH TM 90mg (solid black solid circles) and PhytoTech Therapeutics’ PTL101 -100mg gelatin matrix capsules (dashed grey open squares) [Atsmon et al., Clinical • Improved Brain Barrier Penetration Pharmacology in Drug Development 2018, 7(7) 751 – 758]. 10 10