Annual Financial Report

Immediate Release: Friday 24th April 2009

                               CLS Holdings plc                                

                        (the `Company' and the `Group')                        

               Annual Report and Accounts posted to Shareholders               

The Company announces that it is today posting to shareholders its Annual
Report & Accounts for the year ended 31 December 2008, together with the Notice
of Annual General Meeting and Form of Proxy. Copies of these documents will
shortly be available on the Company's website, www.clsholdings.com

Pursuant to Listing Rule 9.6.3, two copies of each of the above have been
forwarded 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

Tel No: (0)20 7066 1000

The Appendix to this announcement, which is supplement to our preliminary
statement of our financial results made on 25 March 2009 (the "Final Results
Announcement"), should be read together. It contains further information
required pursuant to DTR 6.3.5 (2) that is in addition to the information
communicated in the Final Results Announcement.

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Appendix

The principal risks and uncertainties facing the business are contained in the
Directors' Report on page 25 of the Annual Report & Accounts for the year ended
31 December 2008 ("Annual Report") and are repeated below.

Risks & Uncertainties

The Company considers there are a number of potential risks and uncertainties
which could have a material impact on the Group's performance and could cause
the actual results to differ materially from expected and historical results.
Management and mitigation of these risks is the responsibility of the Board.

Risk                                     Mitigation                        
                                                                           
Property investment risks                                                  
                                                                           
Underperformance of investment portfolio The senior management has detailed
impacting on financial performance due   knowledge of core markets and     
to: Cyclical downturn in property market experience gained through many    
                                         market cycles. This experience is 
Inappropriate buy/sell/hold decisions    supplemented by external advisors 
                                         and financial models used in the  
                                         capital allocation decision       
                                                                           
Changes in supply and/or tenant demand   The Group's average property      
affecting rents and vacancies            portfolio is diversified across   
                                         four countries. Average time      
                                         remaining on current leases is 8.1
                                         years and the Groups largest      
                                         tenant concentration is with the  
                                         Government sector which comprises 
                                         39.8 per cent. The largest single 
                                         non government tenant represents  
                                         3.1 per cent. of gross rent and is
                                         a major international bank.       
                                                                           
Poor asset management                    Property teams review the current 
                                         status of all properties weekly   
                                         and provide a written report to   
                                         senior management on KPIs         
                                         including vacancies, lease expiry 
                                         profiles and progress on rent     
                                         reviews which are actively managed
                                         to mitigate risk.                 
                                                                           
Funding risks                                                              
                                                                           
The risk that financing or refinancing   The Group has a dedicated Treasury
will not be obtained at an acceptable    department and relationships are  
price                                    maintained with approximately 20  
                                         banks across the countries in     
                                         which we operate thus reducing    
                                         credit risk and increasing        
                                         opportunities to obtain the best  
                                         deal. The Group's exposure to     
                                         changes in prevailing market rates
                                         is largely hedged on existing debt
                                         but there is an exposure on       
                                         re-financing of existing debt     
                                         although this is mitigated by the 
                                         lack of concentration in          
                                         maturities. For new property      
                                         acquisitions the current and      
                                         expected future cost of debt is   
                                         considered in the initial decision
                                         to buy.                           
                                                                           
Foreign currency exposure                Property investments are partially
                                         funded in matching currency. The  
                                         difference between the value of   
                                         the property and the amount of the
                                         financing is generally unhedged   
                                         but is monitored on an ongoing    
                                         basis.                            
                                                                           
Taxation risks                                                             
                                                                           
The risk that there will be increases in The Group monitors legislative    
tax rates or changes to the basis of     proposals and both retains and    
taxation including corporation tax, VAT  consults external advisors as     
and stamp duty land tax.                 required to understand and, if    
                                         possible, mitigate the effects of 
                                         any such change.                  
                                                                           
Going Concern                                                              
                                                                           
The risk that given the economic         The current economic conditions   
uncertainties the Group will not have    have created a number of          
adequate working capital to remain a     uncertainties as set out above.   
going concern for the next 12 months     The Group's business activities,  
                                         together with the factors likely  
                                         to affect its future development  
                                         and performance are set out in the
                                         Business Review on pages 7 to 10  
                                         of the Annual Report. The         
                                         financial position of the Group,  
                                         its liquidity position and        
                                         borrowing facilities are described
                                         on pages 11 to 18 and in Note 3.3 
                                         of the accounts in the Annual     
                                         Report.                           
                                                                           
                                         The Directors regularly           
                                         stress-test the business model to 
                                         ensure that the Group has adequate
                                         working capital and have reviewed 
                                         the current and projected         
                                         financial position of the Group,  
                                         taking into account the repayment 
                                         profile of the Group's loan       
                                         portfolio (as set out in Note 27  
                                         to the financial statements in the
                                         Annual Report), and making        
                                         reasonable assumptions about      
                                         future trading performance. After 
                                         making detailed enquiries, and    
                                         based upon current information    
                                         available to them, the Directors  
                                         have a reasonable expectation that
                                         the Company and the Group have    
                                         adequate resources to continue in 
                                         operational existence for the     
                                         foreseeable future.               
                                                                           
                                         Accordingly, they continue to     
                                         adopt the going concern basis in  
                                         preparing the annual report and   
                                         accounts.                         

Directors' responsibility statement

We confirm to the best of our knowledge:

• the financial statements, prepared in accordance with International Financial
Reporting Standards as adopted by the EU, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company and
the undertakings included in the consolidation as a whole; and

• the Chairman's Statement, Business Review and Financial Review, together with
the table of risks and uncertainties which are incorporated into the Directors
Report, includes a fair review of the development and performance of the
business and the position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties they face.

Enquiries:

Sten Mortstedt, Executive Chairman, CLS Holdings plc [phone]

Henry Klotz, Chief Executive Officer, CLS Holdings plc [phone]

Jonathan Gray, NCB Corporate Finance + 44 (0) 20 7071 5200

Adam Reynolds, Hansard Group [phone]

David Fuller,

Deputy Company Secretary

CLS Holdings plc

[phone]