The Leader In North American Made Xylitol Products

Company Announces 60% Revenue Growth for the Nine Months Ended Sept 30, 2014

Message: Xylitol Canada Financial Results for Three and Six Months Ended June 30, 2015

TORONTO, ONTARIO--(Aug. 28, 2015) - Xylitol Canada Inc. ("Xylitol Canada", or the "Company") (TSX VENTURE:XYL) today announces that it has released its financial and operating results for the three and six months ended June 30, 2015.

Highlights of the results include:

Three months ended June 30 2015 2014
Revenue $ 2,428,687 $ 1,967,028
Net Loss $ (680,036 ) $ (846,330 )
Loss per share $ (0.007 ) $ (0.010 )
Six months ended June 30 2015 2014
Revenue $ 4,346,394 $ 4,137,652
Net Loss $ (1,849,763 ) $ (1,423,152 )
Loss per share $ (0.020 ) $ (0.016 )

"We are pleased to have achieved a 23% growth rate in Q2 2015 compared to Q2 2014. Additionally, we are up 5% over the same period last year which we are very pleased with given the port strikes that impacted Q1 2015. Our repricing initiatives have just started to materialize and we look forward to those contributing to Q3 and Q4 of this year. On the plant side of the business, we are very excited about many recent developments. We recently released a project update and we plan on continuing those updates as material milestones are met. Market conditions continue to be favorable and our team continues to execute," commented Andrew Reid, CEO of Xylitol Canada.

The full text of the Company's interim consolidated financial statements and related management's discussion and analysis ("MD&A") can be found at:

About Xylitol Canada Inc.

Xylitol Canada operates 2 business units that address the growing xylose and xylitol markets. Xylitol Canada's consumer packaged goods division is based in Denver Colorado and has grown from under $500,000.00 in revenue in 2010 to over $8,600,000.00 in 2014. Xylitol Canada operates a 50,000 square foot xylitol facility where it produces and packages a full catalog of natural sugar free products, most notably its natural sugar alternatives. Through this Denver based facility, the Company services major retail customers such as Loblaws, Whole Foods, Costco, Sprouts, and many others.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.

Forward Looking Statements

This press release contains forward-looking statements. Often, but not always, forward-looking statements 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 statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xylitol Canada to be materially different from any future anticipated results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of Xylitol Canada to obtain necessary financing; the development of and demand for xylitol products; production of a commercial scale production facility; the economy generally; consumer interest in the services and products of Xylitol Canada; competition; and anticipated and unanticipated costs. While Xylitol Canada anticipates that subsequent events and developments may cause its views to change, Xylitol Canada specifically disclaim any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing Xylitol Canada's views as of any date subsequent to the date of this press release. Although the Xylitol Canada has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect Xylitol Canada. Additional factors are noted under "Risk Factors" Xylitol Canada's financial statements and related management's discussion and analysis.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Xylitol Canada Inc.
Andrew Reid, CEO
(416) 288-1019(416) 288-1019

Investor Relations:
Matt Willer
(303) 991-1999(303) 991-1999
[email protected]

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