FEDS FORESEE DOMESTIC CANNABIS SUPPLY

The opportunities for medicinal marijuana have been growing quickly
since June, according to the federal government. This was when it
released its report, Health Canada's Research Plan on Marijuana for
Medical Purposes.

Health Minister Allan Rock announced last week that 16 applicants have
been granted exemptions by Health Canada to possess marijuana for
medical purposes and that the review of another eight applications is
near completion.

He also said Health Canada has been working in conjunction with a
number of research agencies to develop studies to determine the
effectiveness and safety of marijuana for various symptoms. The
findings for these studies should be made available in January, 2000
at which time the work would commence.

Health Canada has announced that it wants to have a Canadian operation
in place within a year to provide a supply of research-grade cannabis.

This is the development that could spur activity locally according to
Brian Taylor of Grand Forks. The beginning of next year, he says, will
be the time for more news on the research front.

"The call for proposals (to produce medical-grade marijuana) will
likely be right after that," he says.

Taylor says his business, the Grand Forks Hemp Company, has been busy
getting prepared for future opportunities. As of last week, it is
also now associated with the Hemp Industries Association, the largest
North American hemp organization.

Taylor says he has also sent a business plan to Community Futures
Development Corporation for review, and hopes his company will
eventually be eligible for government grants.

Taylor says he also has a proposal in to use Canada Post as a means of
distributing small amounts of medical-grade marijuana if his company
is chosen to produce it. "They have a secured-mailing system," says
Taylor. Packages could only be released if the recipient signs at the
point of delivery.

Until such time as a licit, domestic supply is established, Health
Minister Rock says Canada will look to both the U.S. National
Institute of Drug Abuse and a private company in the U.K., GW
Pharmaceuticals, Ltd. to provide drug material for upcoming clinical
trials.

These sources will be acessed as soon as clinical trials are ready to
begin.