CLS Holdings Regulatory News (CLI)

19 AUGUST 2010

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

CLS Holdings plc

("CLS" or the "Company")

Proposed purchase of 1 in every 74 Ordinary Shares of 25p each

 in the Company ("Ordinary Shares") at 625 pence per share

by way of a tender offer (the "Tender Offer") and

Notice of General Meeting

Today the Board of CLS announced in its Half Yearly Financial Report that the Company intends to purchase 1 in every 74 Ordinary Shares by way of a tender offer at 625p per share.

CLS has today posted a circular to shareholders in relation to the Tender Offer on the terms set out above. If the maximum number of 638,195 Ordinary Shares under the Tender Offer is acquired, this will result in approximately £4 million being paid by the Company to participating shareholders.

The Tender Offer is open to all eligible shareholders on the Company's register at 5.00pm on 7 September 2010, who may participate by tendering all or a proportion of their holdings of Ordinary Shares at the above price. No Ordinary Shares will be purchased in relation to the Tender Offer unless the relevant resolution to be proposed at the general meeting of the Company to be held on 8 September 2010 (the 'GM') is passed. The Tender Offer will be void if less than 0.1 per cent. of the issued ordinary share capital of the Company (excluding treasury shares) in aggregate is tendered. The Ordinary Shares purchased under the Tender Offer will be cancelled.

Copies of the Tender Offer circular, tender form and form of proxy will be submitted to the UK Listing Authority, and will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

+44 (0)20 7066 1000

Full details of the Tender Offer are contained in circular which will shortly be available on the CLS website along with the form of proxy at www.clsholdings.com, in the Investor Relations section under Financial Reports. Copies of the documents may also be obtained from the Company Secretary.

Enquiries:

CLS Holdings plc

David Fuller

+44 (0)20 7582 7766

Kinmont Limited

Jonathan Gray

+44 (0)20 7087 9100

Kinmont Limited is advising CLS in relation to the Tender Offer and no one else and will not be responsible to anyone other than CLS for providing the protections afforded to the customers of Kinmont Limited nor for providing any advice in relation to the Tender Offer.

This announcement, which has been issued by the Company and is the sole responsibility of the Company, has been approved only for the purposes of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom by Kinmont Limited, 5 Clifford Street, London W1S 2LG, a firm which is authorised and regulated in the United Kingdom by the Financial Services Authority.