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GelStat Corporation Acquires Mastix Medica, LLC for Restricted Common Stock

Gelstat Gets Entry Into Explosive Medical Marijuana and Industrial Hemp Business

PALM CITY, FL--(Marketwired - July 08, 2014) - GelStat Corporation (PINKSHEETS: GSAC), a company engaged in the research, development, marketing, licensing and branding of innovative Over-the-Counter (OTC) consumer healthcare products, is pleased to announce it has closed the acquisition of Mastix Medica, LLC on July 7, 2014. GelStat acquired 100% of the membership equity in Mastix Medica, LLC in exchange for 27,500,000 restricted shares in GelStat's common stock. In conjunction with the closing of this acquisition, GelStat launches a new corporate website which can be viewed at www.Gelstat.com

Mastix Medica, specializes in the manufacturing of functional gum and tableted products in a variety of dosage forms for a diverse customer base, and for domestic and international markets. These products include cannabidiol-infused ("CBD") tableted chewing gums, chewable tablets, lozenges, mints and confections for a wide variety of customers including national brand leaders, small niche marketers, the U.S. Military, export customers and many more. Product capabilities include the manufacture of dietary supplements, functional chewing gum infused with CBD's from industrial hemp, functional foods and medicated confectionaries and candy. At full capacity we project Mastix's 28,000 square foot facility could add $15 to $20 million to GelStat's annual revenue depending on product mix.

Larry Gershman, Gelstat's CEO, said, "The acquisition of Mastix Medica adds another dimension to GelStat that complements our present experience in product innovation and marketing. The vertical integration also enhances our gross margins on our recently introduced dietary supplement Chews 2 Lose Appetite Suppressant Gum. More importantly, the acquisition brings to GelStat a key asset and foothold in the explosive growth high-CBD/low-THC medical marijuana and hemp infused products market. Mastix Medica has recently filed for a provisional patent that allows for the infusion of hemp oil based substrates into gum powder that is yielding higher concentrations of the active ingredients as the gum is never boiled but produced at room temperature.

Robert ("Bob") Estey said, "I am delighted to become part of the GelStat team and continue Mastix's mission of providing unique, high quality products to the market. The combination of their leading scientific advisors and marketing team with our proprietary manufacturing processes makes us a vertically integrated one-stop shop for product innovation from concept through manufacturing, clinical validation and marketing. Furthermore, Larry Gershman's deep knowledge of the CBD market and vast industry connections have already opened up significant opportunities on a global scale potentially."

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ABOUT MASTIX MEDICA

Mastix Medica was founded in 2009 to develop niche healthcare products in underutilized, emerging dosage forms like tableted chewing gum, chewable tablets and lozenges. Using an in-house product development team, Mastix Medica develops custom tablet formulations that incorporate dietary supplements for companies competing in a variety of markets, including energy, immune support, weight loss, pain relief and dental health.

Mastix Medica is one of very few companies in the world that has the ability to make tableted chewing gum products at room temperature versus the traditional boiling process which can degrade the active ingredients and reduce their efficacy. It has also developed a proprietary direct compression tableting process that is excellent for delivering supplements and active ingredients making it unique to the entire industry.

Mastix Medica has formulated a chewing gum product infused with hemp oil which is rich in cannabidiol (CBD). We are also able to make a lozenge or a chewable tablet with hemp and/or marijuana extracted oil. We believe Mastix is the only chewing gum manufacturer that can incorporate an ingredient like hemp/marijuana oil into a piece of chewing gum since our proprietary manufacturing process is very specialized to accommodate a unique active ingredient like hemp oil.

  • Mastix Medica has a unique proprietary process for incorporating hemp oil into chewing gum, lozenges and chewable tablets.
  • We manufacture the only chewing gum with hemp oil on the market; we believe more hemp oil gum and lozenge products are coming in the near future because hemp oil provides the medicinal benefits without the hallucinogenic effects of marijuana.
  • Mastix Medica will only use hemp oil that has very low THC; the hemp oil we use is rich in cannabidiol (CBD). We will, however, license our patent pending technology to those companies wanting to infuse high-THC marijuana oil into their gum products in states and countries wherein the manufacturing and distribution of marijuana has been legalized.

For more information on Mastix Medica visit: http://mastixmedica.com

ABOUT GELSTAT CORPORATION

GelStat Corporation is a publicly-traded company trading under the symbol ("GSAC") that is engaged in research, development, marketing and branding of innovative over-the-counter (OTC) consumer healthcare products addressing very large markets. The Company's initial products include GelStat Migraine, GelStat Sleep, Chews 2 Lose and All Natural Speed. The Company also has a suite of additional healthcare products in various stages of development that address large consumer markets.

Decision Resources, one of the world's leading research and advisory firms for pharmaceutical and healthcare issues, expects the market for migraine therapies to grow from $3.3 billion in 2011 to $5.8 billion in 2021 in the United States, France, Germany, Italy, Spain, the United Kingdom and Japan.

The total over-the-counter market for sleep aids alone reached $604 million in 2008, an increase of 9 percent over 2007, according to Packaged Facts, a division of Rockville, Md.-based Market Research Group.

According to Marketdata Enterprises, Inc., a leading independent market research publisher of "off-the-shelf" studies about service industries since 1979, an estimated 75 million dieters spent $2.7 billion in 2010 on diet pills and meal replacements.

According an article published by Companies and Markets.com, the US energy drinks market is estimated to have increased by 60% over the past four years, hitting an estimated value of $12.5 billion in 2012. The industry is expected to continue this growth path, by rising to a valuation of $21.5 billion by 2017.

For more information, visit www.gelstat.com.

Safe Harbor Statement

This press release contains forward-looking statements including the projected revenue that Mastix may produce, the forecasted size of the migrane market and the forecasted value of the energy drink market. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the ability of Mastix to obtain future customers, regulatory and other legal changes which may affect the forecasts, and the demand for hemp based products as well as the ability to sell hemp products.

Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

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FOR ADDITIONAL INFORMATION CONTACT:

Gerald Kieft
CFO
GelStat Corporation
772-283-0020

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