Mr. Jeffrey Ciachurski reports

CAPTIVA VERDE PROVIDES CORPORATE UPDATE

Captiva Verde Industries Ltd. has provided the following corporate update.

The company issued yesterday its second quarter 2016 financial statements and management's discussion and analysis. To provide background and perspective, within the course of the past 10 months, Captiva Verde became a brand new entrant in the world of extremely large-scale USDA-certified organic vegetable production. Captiva Verde has spent in excess of $20-million developing, cultivating, harvesting or producing from a holding of 9,000 crop acres of organic farmland with abundant water resources.

With the sole exception of Captiva, a portfolio of 9,000 crop acres takes a large farming company at least three generations and 60 years to acquire and develop. This has taken Captiva Verde 12 months and certainly a very aggressive position to take within any segment of farming, especially organic produce. The purpose was to let the industry know the company has the capacity and land to provide quality product in large quantities. The company has made some strategic land plays like holding and producing from a large portfolio in central Arizona. This area constitutes the produce industries' shoulder season, being March to May and September to November, inclusive. The traditional winter season in Imperial Valley is November to March, and the summer in Salinas is April to October. Salinas has been faced with very serious mildew problems and enormous water issues in key Salinas subregions, something not faced in Arizona, making the landholdings a valuable asset.

A recent July, 2016, valuation by a Canadian brokerage firm valued organic produce crop land at $52,000 per crop acre based on a very recent actual sale. Of course, the company in question had a New York Stock Exchange listing, and Captiva Verde is well under that radar, but the metrics prove the thinking is correct. To further distort comparisons with other industries, there is no accounting policies that allow the company to amortize its sunk costs in excess capacity as deferred assets; therefore, the company writes off the excess crop capacity against its revenues, leaving large losses that do not place value on the land or balance sheet.

The company's main focus is increasing sales, reducing costs, dealing directly with certain parties and putting the past large start-up expenses to rest. The company is working on joint ventures, custom farming deals, acquisitions and all opportunities that can unlock value. Its $20-million of invested capital came from both shareholders and included $6-million from vendors which are currently supporting the excess capacity position of Captiva Verde. This commitment shows up in the company's financial statements as a current account payable even though all vendors are allowing the company to build over time. As the chief executive officer of Captiva Verde was the former CEO and founder of the very successful Western Wind Energy Corp. (which was sold with not more than $70-million in share equity raised yet sold for $420-million), the sale would not have happened if the buyer was looking at the balance sheet or the profit-and-loss statement. Western Wind was sold for its productive capacity and land position, and the buyer quickly took the company off its filing obligations to avoid publicly filing financial statements with major losses after an almost half-billion-dollar purchase. Captiva Verde will not grow only in value based on a P&L or FS statement, but will grow based on productive land capacity. Captiva Verde is not a Yieldco or an income fund but an aggressive growth player in organic farming.

Captiva Verde has completed another tranche of a private placement at 25 cents per share and continues to judiciously raise funds to expand the company.

We seek Safe Harbor.