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A platform for TECH, MEDIA & GAMING , with a focus on the cannabis industry and emerging growth sectors. TECH , MEDIA & GAMING OCTOBER 2016 CONFIDENTIAL PROPRIETARY PROPERTY OF FIRST HARVEST CORP

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Page 1: A platform for TECH TECH, MEDIA MEDIA & GAMING with a ... · companies such as Activision, Sega, MiniClip and DropBox. Dr. Gregory Smith, MD, MPH is a board certified physician specializing

A platform for TECH, MEDIA & GAMING, with a focus on the cannabis industry and emerging growth sectors.

TECH ,MEDIA&GAMING

OCTOBER 2016CONFIDENTIAL PROPRIETARY PROPERTY OF FIRST HARVEST CORP

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SAFE HARBOR STATEMENTCerta in statements in th is presentat ion regarding strategic plans, expectat ions and object ives for future operat ions or results are “ forward-looking statements” as def ined by the Pr ivate Securi t ies L i t igat ion Reform Act of 1995. These statements may be ident i f ied by the use of forward-looking words such as “ant ic ipate,” “bel ieve,” “ forecast ,” “est imate” and “ intend,” among others. These forward-looking statements are based on F irst Harvest Corp. ’s current expectat ions and actual results could d i f fer mater ial ly . There are a number of factors that could cause actual events to d i f fer mater ial ly from those indicated by such forward-looking statements. These factors include, but are not l imited to , our need for addi t ional f inancing; uncerta int ies of government regulat ions and enforcement; and compet i t ion. The forward-looking statements in th is presentat ion are made as of the date of th is presentat ion, even i f subsequently made avai lable by the Company on i ts websi te or otherwise. F irst Harvest Corp. does not undertake an obl igat ion to update or rev ise any forward-looking statement , except as required by law. Investors should read the r isk factors set forth in the amended Annual Report on Form 10-K/A for the year ending March 31, 2016, as f i led with the Securi t ies and Exchange Commission ( the “SEC”) on August 31, 2016, and future per iodic reports f i led with the SEC on or af ter the date hereof . Al l o f the Company's forward-looking statements are expressly qual i f ied by al l such r isk factors and other caut ionary statements.

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FIRST HARVEST CORPTech, Media & Gaming Platform

Ecosystem spans mobile gaming, digital and social media, ecommerce sales and education

Platforms connect niche cannabis-related companies and main stream advertisers to pro-legalization supporters of medical and recreational cannabis

Mobile Gaming - game titled “Hemp Inc.” Digital Media - “Cannavoices” social media and digital content

”“ACCORDING TO THE RESULTS OF A JUNE 6, 2016 QUINNIPIAC POLL PUBLISHED IN POLITICO, 54% OF REGISTERED VOTERS FAVOR LEGALIZATION ACROSS THE US, AND 89% FAVOR THE USE OF

MEDICALLY PRESCRIBED CANNABIS

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MANAGEMENT TEAM

CHEIF EXECUTIVE OFFICER

Kevin is the Founder and CEO overseeing the strategic goals and management of First Harvest Corp. He is a recognized expert in the cannabis industry. Kevin is a third generation investment entrepreneur with 25 years of experience in the financial services industry, specializing in venture capital. He was an early round investor in pre-public investments in companies like Facebook, Groupon, Zynga and Twitter. Kevin also has experience serving as a principal and advisor to numerous private equity firms and high growth companies.

Additionally, Kevin is the Founding Partner and CEO of First Harvest Financial, LLC, which provides strategic consulting as well as investment to visionary entrepreneurs within the burgeoning medical cannabis industry. Previously, he served as the EVP of J.P. Turner Tampa Investment Group where he led early-round investments. Prior to this, Kevin was a founding broker involved primarily in investment banking activities for Gunn Allen Financial.

Danny is a director and CTO overseeing strategic development of First Harvest Corp. He is a veteran C-level Executive, including Activision (Nasdaq “ATVI”), with over 25 years experience in consumer products and entertainment software. With approximately $20 billion in gaming revenues attributed to his brands, Danny is considered one of the industry’s premiere leaders in branded consumer software for the mass market.

Previously, Danny served as EVP of Vivendi Universal Games where he created the Value/Casual Games division managing all console, PC and online product management and acquisitions. He has led the development of such noted brands as Cabela’s Big Game Hunter, Activision’s Call of Duty, and other popular games including Tony Hawk, Spiderman and Toy Story. He has also secured partnerships with major movie studios to include Marvel, Disney, DreamWorks and Pixar. Danny has assembled an experienced industry team from companies such as Activision, Sega, MiniClip and DropBox.

Dr. Gregory Smith, MD, MPH is a board certified physician specializing in Preventative Medicine. He earned his medical degree from Rush Medical School in Chicago, and a Masters of Public Health from Harvard University. He completed residency training at Walter Reed Army Medical Center. Since leaving the US Army with the rank of Major, Dr. Smith has been in primary care practice in California, Georgia and Florida for the past 25 years.

Dr. Smith has held several academic appointments and is an active contributor to some of the leading medical journals. He has made medical cannabis and CBD oil part of his research and practice since 2000. He has published the first-ever textbook directed toward training medical students and primary care doctors on the use of medical cannabis entitled, “Medical Cannabis: Basic Science and Clinical Applications - What Clinicians Need to Know and Why.” Dr. Smith is a recognized expert in the field of study of cannabis-related treatments.

DIRECTOR, TECHNOLOGY DIRECTOR, MEDICAL AFFAIRS

KEVIN GILLESPIE DANNY HAMMETT GREGORY L. SMITH, MD, MPH

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“”[Hemp Inc. is the trademarked game-name title]

HEMP INC.

HEMP INC. IS A MOBILE FIRST, BUSINESS STRATEGY, ROLE PLAYING GAME

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GAMING[1ST]

Hemp, Inc is a strategy-based game that mimics real life cannabis culture and serves as a platform for advertising and ecommerce sales.

Hemp, Inc. is establishing itself as a major brand within this emerging market, tapping into the explosive growth of the video gaming industry, combined with the inevitable legalization of cannabis.

For those new to the gaming space, the business model is simple. Hemp, Inc. uses gaming as a sales platform and has developed a unique marketing strategy that leverages powerful viral and social mechanisms to keep the cost of acquiring users low, with multiple revenue streams. Hemp Inc. is a fun, viral and addictive social game designed to position itself as a mobile gaming leader.

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GAMECONCEPTT

P

he gameplay objective is to set up and grow a legal cannabis business in a virtual world, using business strategy to create an

environment full of prosperity and growth. layers can start up a virtual cannabis business in a more risky, illegal state while raising money and support to get cannabis

legalized, or face the challenging competition found in legal states with bigger audiences.

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“ ”Mobile: (Android, iOS) targeting a mature audienceStrategy: resource building, management and profitsSocial: viral, raising medical and legalization awareness‘Freemium’ Model: revenues through in-app purchases, ad sponsors and merchandising

Establish grow operations and dispensariesHire staff to help grow, distribute and sell more productPurchase items ‘picks & shovels’ to improve operations and develop new cannabis strainsLegalize cannabis in every state, improving the local surroundingsEducate on the benefits and efficacy of cannabisCreate celebrity tie-ins & merchandising-product placement

LEGALIZE CANNABIS ACROSS THE US

GAMECONCEPT[cont.]

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TARGET AUDIENCEMobile short to medium gameplay

sessions (3-30 mins)

People with an interest in cannabis

Strategy business & goals, people

who want to build something

Action adventure & crime-drama

Enthusiasts medical and

recreational legalization

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GAMINGATTRIBUTES1 Large, Highly Engaged Audience

Daily Revenue Opportunity

What does success look like?

Top 50 Grossing Game in USA

Both industries are experiencing double-digit growth

2

Question

Answer

45% of Americans play mobile games

G A M I N G V S C A N N A B I S38% of Americans ‘admit' to Cannabis use

Gamers are 56% Male, 44% Female Cannabis users are 62% Male, 38% Female

Mobile gaming industry est. $37 Billion Cannabis industry est. $50 Billion

Average game player is 35 years old Average cannabis user is 37 years old

12% play mobile games regularly 8% smoke Cannabis regularly

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”“ ”

In 2016, mobile games will generate $36.9Bn or 37% of the global market

Source: ©Newzoo | Global Games Market Report Premium

newzoo.com/globalreportpremium/

©2016 Newzoo

2016 TOTAL

$99.6Bn+8.5%

YoY

5%

27%

27%

10%

2%

29%

TV/CONSOLE

MOBILE PHONETABLET

PC/MMO

CASUAL WEBGAMES

$5.2Bn-7.5% YoY

$26.7Bn+4.2% YoY

HANDHELD

$27.1Bn+23.7% YoY

$9.8Bn+6.4% YoY

$29.0Bn+4.5% YoY

$1.8BnYoY

PER SEGMENT WITH YEAR-ON-YEAR GROWTH RATES

24.1% -

2016 GLOBAL GAMES MARKET

THE GAMING MODEL

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Source: ©Newzoo | Global Games Market Report Premium

newzoo.com/globalreportpremium/

TV/ConsoleHandheldTabletSmartphone PC/MMOCasual Webgames

24% 27% 30% 32% 34%9%

10%10%

11%11%

3%2%

1%1%

1%30%

29%28%

27%26%

6%5%

5%4%

4%28%

27%26%

26%25%$91.8Bn

$99.6Bn$106.5Bn

$112.5Bn$118.6Bn

2015 2016 2017 2018 2019

MOBILE

$30.4Bn

MOBILE GAMING MARKET

+11.6%CAGR 2015-2019

MOBILE

$36.9Bn

MOBILE

$42.5Bn

MOBILE

$47.4Bn

MOBILE

$52.5Bn

©2016 Newzoo

-2019 GLOBAL GAMES MARKETFORECAST PER SEGMENT TOWARD 2019“ ”

46% OF MOBILE USERS PLAY GAMES ON A DAILY BASIS-Forrester Research

2015

THE GAMING MODEL[cont.]

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TOP 10 GROSSING MOBILE GAMES

DAILY REVENUES(as of OCTOBER 2016)

”“IN-GAME

PURCHASES & ADS ARE MONEY MAKERS

CLASH ROYALE

POKEMON GO

GAME OF WAR - FIRE AGE

MOBILE STRIKE

CANDY CRUSH SAGA

CLASH OF CLANS

CANDY CRUSH SODA SAGA

MADDEN NFL MOBILE

TOY BLAST

SLOTOMANIA $186,724

$213,516

$281,295

$337,727

$402,001

$478,159

$690,275

$1,226,442

$1,562,029

$1,969,094

THE GAMING MODEL[cont.]

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32.46

21.91

18.52

8.6

11.36

6.75

4.47

0 10 20 30 40

MEDIAN

MEDIAN

GAMES

EDUCATION

SOCIAL NETWORK

ENTERTAINMENT

HEALTH & FITNESS

MEDIAN APP STORE PAGE CONVERSION RATE (%)

TRAVEL

MUSIC

DOES CONVERSION VARY BY CATEGORY? (YES)

Mobile game apps are growing at explosive rates, eating up a large chunk of time people spend on public transportation, in lines and airports and virtually anywhere.

With so many choices available to provide immediate gratification to a mobile user, apps in “Games” category show the lowest conversion rate (Impression vs Download), but highest profitability.

”“WITHIN THE FIRST 90 DAY LAUNCH, HEMP INC. ACHIEVED A 27.2% CONVERSION RATE!

RANKED AS HIGH AS #18 STRATEGY GAME ON iOS App Store

THE GAMING MODEL[cont.]

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CELEBRITYENDORSEMENTSHemp Inc. has over 30 celebrities included in the game, including Tommy Chong, Cheech Marin, Jimi Hendrix, Melissa Etheridge and Willie Nelson.

Hemp Inc. also has organizations such as NORML and High Times in the game. Hemp Inc. makes a percentage of all click-through merchandising sales from the celebrities and ad-brands. The Company anticipates as many as 1 billion social media views from its celebrity endorsements.

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1. In-app micro-transactions where gamers are continually offered in-game characters, accessories and dead-drops for enhanced game play for a small payment, typically $0.99 - $9.99

2. Branding and ad-placement within the game

3. Celebrity affiliate agreements for revenue share via in-app ecommerce purchases

he Company believes marrying three of the fastest growing business sectors - cannabis, social media

and mobile gaming; along with its world-class development team led by a former C-level executive of Activision and in-game celebrities; its platforms can become the premiere advertising medium in the cannabis industry.

REVENUEMODELT

‘FREEMIUM’ DOWNLOAD WITH A THREE-PRONGED REVENUE MODEL

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CANNAVOICESCannavoices is a digital media platform focused on bridging the gap between brand conscious advertisers and the 89 million socially active supporters of the cannabis legalization movement.

”“THE CANNAVOICES ECOSYSTEM SPANS FROM EDUCATION, GAMING, ENTERTAINMENT AND

MERCHANDISING TO AN ADVERTISING PLATFORM

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DEMOGRAPHICSur primary target market is fun-seeking, socially active millennials (18-33) and generation Xers (34-50) located

in North America who own a smartphone, tablet or PC and use cannabis either recreationally or medically. They are regular consumers of games, apps, music, movies and online content and are comfortable with making purchases

online and through mobile applications.

NORTH AMERICA

(according to U.S Census Bureau 2010 & 2014 PEW Research Study)

52% in favor of legalization(32.7 Million)

68% in favor of legalization(56.4 Million)

Born 1982-2000

Total Population83 Million

Total Population63 Million

Born 1965-1981

Millennials Generation X

O

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”DEMOGRAPHICS[cont.]

hey are highly influenced by friends and congregate in groups, with media consumption and purchasing

decisions being heavily driven by peer referrals. They spend a large portion of their discretionary income on entertainment, however they have high expectations, making high production values a must. They need to be intensely entertained and engaged and actively seek

out media they can call their own.

T

Estimated income for US households based on survey responses and estimates using demographic data. Source: Acxiom

77% MALE

15%

10%

30%

20%

25%

23% FEMALE

Household Income:

Our Audience Is:

$30,000- $40,000

$41,000- $50,000

$51,000- $75,000

$76,000- $100,000

$100,000 +

DESKTOPTABLET MOBILE

MEDIA DEVICES

Average Time Spent On CannaVoices Platform Per Visit: 6+ Minutes

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”“

High School

Single In a Relationship Engaged

Owner

RenterMarried

College Grad School

US home ownership based on survey responses and publicly available data. Source: Acxiom

The highest level of education reached based on self-reported data from readers on Social Media

Self-reported data from readers who list a relationship status on Social Media

38%

50%61%

39%

25% 5% 20%

59% 3%

Relationship Status:Home Ownership:

Education Level:

DEMOGRAPHICS[cont.]

hey can become powerful brand advocates, and know they can get others to support a brand they

love, as well as cause damage to the ones they hate. Recognition, status and self-expression are important to them, and they enjoy both sharing and creating content using mobile apps such as Instagram and Vine.

T

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ADVERTISINGOPPORTUNITYrom a member or gamer perspective, the Platform eliminates the stigma of cannabis as an illicit drug and provides an affinity driven

ecosystem that attracts, engages and inspires members through mobile gaming, social and digital media, ecommerce and education while advancing the passionate cause members already support.

rom an advertiser perspective, the Platform provides a brand-safe environment to reach a large, self-identified, socially active,

web-savvy, niche audience with targeted advertisements uniquely matched to a user’s social engagement habits. Popular social media platform companies like Facebook™, LinkedIn™, Twitter™, YouTube™ and Google+™ do not provide advertisers the ability to tap into this segmented market due to restrictive protocols found within their terms of service.

BY LEVERAGING THE PLATFORM, ADVERTISERS NOW HAVE THE ABILITY TO GAIN CRUCIAL BEHAVIORAL ANALYTICS ACROSS SEVERAL MEDIA PLATFORMS IN ORDER TO DRAMATICALLY

INCREASE THEIR BRAND’S REACH, VIRAL MARKETING AND RESULTS“

F

F

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ADVERTISINGOPPORTUNITY [cont.]

T

W

he Company’s two platforms create cross-advertising opportunities. In addition to attracting new members and gamers, both platforms provide unique user

insights and highly actionable intelligence that can better align an advertiser’s products and solutions directly with a more inclined prospect.

hether to expand a user's knowledge, enjoy an entertaining mobile game, discover alternative therapies, purchase merchandise or just join the biggest

social movement since prohibition repeal, the Platform empowers users and advertisers alike to connect the voices that change the world.

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“LEGALIZATIONMAP

Cannabis prohibition has been in place for 80+ years, but the tides are clearly turning. Potential product applications range from recreational, to health & wellness, to therapeutic,

to pharmaceutical

Recreational cannabis legalized in four states (AK, CO, OR, WA), plus Washington D.C.

Medical Cannabis legalized in 25 states.

The recreational cannabis market is expected to increase 9x over the next 10 years, assuming federal legalization. The Cowen & Co. report estimates there are over 32 million yearly cannabis users in the U.S. (and close to 9 million daily users). With an approximately $6 billion in legal cannabis sales in 2016 (recreational and medical), the report anticipates the transitioning of the informal market and capitalizing on growing incidence, higher per caps, and premiumization should drive the 9x increase in 10 years. A 24% 10-year revenue CAGR, which the report states is hard to find in consumer staples, in particular with a $50+ billion end-point.

Cowen & Co., "The Cannabis Compendium: Cross-Sector Views on A Budding Industry," September 12, 2016

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PROJECTIONS

REV $2.1 MM

$0.6 MM

$0.3 MM $6.7 MM

$11.1MM

$35.1MM $83.1 MM

$26.2 MM

$16 MM

14.3 MM1.8 MM 5.9 MM

2016 2017 2018

EBIT

NET INC

USERSCompany Estimates: Detailed Projections Available Upon Request

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A platform for TECH,MEDIA& GAMING, with a focus on the cannabis industry

and emerging growth sectors.

Contact: Kevin Gillespie, [email protected]: (813) 731-1014

Ticker Stock Price

Market Cap

Users

Shares OutstandingPlatforms

Law firm

Auditor

HVST $5.50

23 MM

$125.5 MM

approx. 1 MMas of 10/5/16

*

*