----

|   Title of Each Class |   |   Name of each exchange on which registered |
|---------------------------------|--------|-------------------------------------------------------|
|  None                      |   |  Not applicable                                  |

----

|  U.S.  GAAP |  ☐ |  International Financial Reporting Standards as issued  by the International Accounting Standards Board    ☒ |  Other   |  ☐ |
|------------------|---------------|-----------------------------------------------------------------------------------------------------------------------------------|--------------------|---------------|

----

| GENERAL |                                                                | - 1 -                                                                   |
|---------|----------------------------------------------------------------|-------------------------------------------------------------------------|
| PART I  |                                                           | - 2 -                                                                   |
|    | ITEM 1 - IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | - 2 -                                                                   |
|    | ITEM 2 - OFFER STATISTICS AND EXPECTED TIMETABLE               | - 2 -                                                                   |
|    | ITEM 3 - KEY INFORMATION                                       | - 2 -                                                                   |
|    |                                                                | A.                                                                      | Selected Financial Data | - 2 - |
|    |                                                           | B.                                                                      | Capitalization and Indebtedness | - 5 - |
|    |                                                           | C.                                                                      | Reasons for the Offer and Use of Proceeds | - 5 - |
|    |                                                           | D.                                                                      | Risk Factors | - 5 - |
|    | ITEM 4                                                         | INFORMATION ON THE COMPANY                                              | - 15 - |
|    |                                                           | A.                                                                      | History and Development of the Company | - 15 - |
|    |                                                           | B.                                                                      | Business Overview | - 16 - |
|    |                                                           | C.                                                                      | Organizational Structure | - 17 - |
|    |                                                           | D.                                                                      | Property, Plant and Equipment | - 17 - |
|    | ITEM 5                                                         | OPERATING AND FINANCIAL REVIEW AND PROSPECTS                            | - 18 - |
|    |                                                           | A.                                                                      | Operating Results | - 19 - |
|    |                                                           | B.                                                                      | Liquidity and Capital Resources | - 22 - |
|    |                                                           | C.                                                                      | Research and Development, Patents and Licences | - 26 - |
|    |                                                           | D.                                                                      | Trend Information | - 26 - |
|    |                                                           | E.                                                                      | Off-Balance Sheet Arrangements | - 26 - |
|    |                                                           | F.                                                                      | Tabular Disclosure of Contractual Obligations | - 26 - |
|    |                                                           | G.                                                                      | Safe Harbor | - 27 - |
|    | ITEM 6                                                         |  DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                        | - 27 - |
|    |                                                           | A.                                                                      | Directors and Senior Management | - 27 - |
|    |                                                           | B.                                                                      | Compensation | - 30 - |
|    |                                                           | C.                                                                      | Board Practices | - 34 - |
|    |                                                           | D.                                                                      | Employees | - 35 - |
|    |                                                           | E.                                                                      | Share Ownership | - 36 - |
|    | ITEM 7                                                         |  MAJOR SHAREHOLDER AND RELATED PARTY TRANSACTIONS                  | - 39 - |
|    |                                                           | A.                                                                      | Major Shareholders | - 39 - |
|    |                                                           | B.                                                                      | Related Party Transactions | - 40 - |
|    |                                                           | C.                                                                      | Interests of Experts and Counsel | - 41 - |
|    | ITEM 8                                                         | FINANCIAL INFORMATION                                                   | - 41 - |
|    |                                                           | A.                                                                      | Consolidated Statements and Other Financial Information | - 41 - |
|    |                                                           | B.                                                                      | Significant Changes | - 41 - |
|    | ITEM 9                                                         | THE OFFER AND LISTING                                                   | - 41 - |
|    |                                                           | A.                                                                      | Offer and Listing Details – Price History | - 42 - |
|    |                                                           | As at December 31, 2013, none of our securities were subject to escrow. | - 43 -  |
|    |                                                           | B.                                                                      | Plan of Distribution | - 43 - |
|    |                                                           | C.                                                                      | Markets | - 43 - |
|    |                                                           | D.                                                                      | Selling Shareholders | - 43 - |
|    |                                                           | E.                                                                      | Dilution | - 43 - |
|    |                                                           | F.                                                                      | Expenses of the Issue | - 43 - |
|    | ITEM 10                                                        | ADDITIONAL INFORMATION                                                  | - 44 - |
|    |                                                           | A.                                                                      | Share Capital | - 44 - |
|    |                                                           | B.                                                                      | Memorandum and Articles of Incorporation | - 44 - |
|    |                                                           | C.                                                                      | Material Contracts | - 44 - |
|    |                                                           | D.                                                                      | Exchange Controls | - 44 - |
|    |                                                           | E.                                                                      | Taxation | - 45 - |
|    |                                                           | F.                                                                      | Dividends and Paying Agents | - 51 - |
|    |                                                           | G.                                                                      | Statement by Experts | - 51 - |
|    |                                                           | H.                                                                      | Documents on Display | - 51 - |
|    |                                                           | I.                                                                      | Subsidiary Information | - 51 - |

----

|     | ITEM 11  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                   | - 51 -                                        |
|----------|----------|------------------------------------------------------------------------------|-----------------------------------------------|
|     |     | A.                                                                           | Transaction Risk and Currency Risk Management | - 51 - |
|     |     | B.                                                                           | Interest Rate Risk and Equity Price Risk      | - 52 - |
|     |     | C.                                                                           | Exchange Rate Sensitivity                     | - 52 - |
|     |     | D.                                                                           | Commodity Price Risk                          | - 52 - |
|     | ITEM 12  | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | - 52 -                                        |
| Part II  |          | - 52 -                                                                       |
|     | ITEM 13  | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              | - 52 -                                        |
|     | ITEM 14  | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | - 52 -                                        |
|     | ITEM 15  | CONTROLS AND PROCEDURES                                                      | - 52 -                                        |
|     | ITEM 16A | AUDIT COMMITTEE FINANCIAL EXPERTS                                            | - 53 -                                        |
|     | ITEM 16B | CODE OF ETHICS                                                               | - 54 -                                        |
|     | ITEM 16C | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                       | - 54 -                                        |
|     | ITEM 16D | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                   | - 55 -                                        |
|     | ITEM 16E | PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS        | - 55 -                                        |
|     | ITEM 16F | CHANGES TO REGISTRANT'S CERTIFYING ACCOUNTANT                                | - 55 -                                        |
|     | ITEM 16G | CORPORATE GOVERNANCE                                                         | - 55 -                                        |
|     | ITEM 16H | MINE SAFETY DISCLOSURE                                                       | - 55 -                                        |
| PART III |          | - 55 -                                                                       |
|     | ITEM 17  | FINANCIAL STATEMENTS                                                         | - 55 -                                        |
|     | ITEM 18  | FINANCIAL STATEMENTS                                                         | - 55 -                                        |
|     | ITEM 19  | EXHIBITS                                                                     | - 56 -                                        |

----

----

----

|  | (i) | Empower Healthcare Corporation ("EHC") is an Oregon based corporation that provides physician services to patients. EHC focuses on pain management services and is a pioneer in the recommendation of cannabis based products to its patients. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | The Hemp & Cannabis Company ("THCC") is an Oregon corporation. THCC owns and leases real estate that was used to cultivate cannabis with state licenses in both Oregon and Washington. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | SMAART Inc. is an Oregon corporation that provides administrative services to SMAART owned companies. |
|--|-------|-------------------------------------------------------------------------------------------------------|

|  | (iv) | The Hemp & Cannabis Company (Washington) owns a property in Washington state that previously was used to cultivate cannabis on behalf of clinic patients. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                 |   |   |   |   | Year Ended December 31, |   |
|--------------------------------------|--------|--------|--------|--------|-------------------------|--------|
|                                 |   | 2015   |   |   | 2014                    |   |   | 2013 |   |   | 2012 |   |   | 2011 |   |
|                                 |   |   |   |   | ($ thousands)           |   |
| Balance Sheet Data                   |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents            |   |   | 124    |   |                    |   | 334 |   |   |   | 617 |   |   |   | 2,394 |   |   |   | 8,094 |   |
| Total Assets                         |   |   | 163    |   |                    |   | 409 |   |   |   | 3,226 |   |   |   | 15,340 |   |   |   | 10,247 |   |
| Total Liabilities                    |   |   | 237    |   |                    |   | 223 |   |   |   | 3,803 |   |   |   | 10,330 |   |   |   | 1,421 |   |
| Total Shareholders' Equity (deficit) |   |   | (74    | )      |                    |   | 186 |   |   |   | (577 | ) |   |   | 5,010 |   |   |   | 8,826 |   |

|                                                                                            |   |   |       |   | Year ended December 31 |   |       |   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|------------|--------|------------------------|--------|------------|--------|--------|
|                                                                                            |   | 2014   |       |   | 2014                   |   |       | 2013   |   |   | 2012 |   |   | 2011 |   |
|                                                                                            |   | $      |       |   |                   | $      |       |   |   | $ |   |   |   | $ |   |   |   | $ |   |   |
| Operating Data                                                                                  |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues and other income                                                                       |   |   | -          |   |                   |   | -          |   |   |   | 17 |   |   |   | 1,889 |   |   |   | 1,323 |   |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                       |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration expenses                                                                            |   |   | -          |   |                   |   | -          |   |   |   | 677 |   |   |   | 1,026 |   |   |   | 5,018 |   |
| General and administrative expenses                                                             |   |   | 349        |   |                   |   | 602        |   |   |   | 2,813 |   |   |   | 5,304 |   |   |   | 5,031 |   |
| Gain on settlement of accounts payable and others payables                                      |   |   | (25        | )      |                   |   | (1,374     | )      |   |   | - |   |   |   | - |   |   |   | - |   |
| Impairment charge                                                                               |   |   | -          |   |                   |   | -          |   |   |   | 5,168 |   |   |   | 7,810 |   |   |   | 1,226 |   |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total expenses                                                                                  |   |   | 324        |   |                   |   | (772       | )      |   |   | 8,658 |   |   |   | 14,140 |   |   |   | 11,275 |   |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating profit (loss)                                                                         |   |   | 324        |   |                   |   | 772        |   |   |   | (8,641 | ) |   |   | (12,251 | ) |   |   | (9,952 | ) |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing income                                                                                |   |   | -          |   |                   |   | -          |   |   |   | 3,027 |   |   |   | 2,480 |   |   |   | 43 |   |
| Loss on foreign exchange                                                                        |   |   | (23        | )      |                   |   | (37        | )      |   |   | (30 | ) |   |   | (745 | ) |   |   | (109 | ) |
| Gain on revaluation of warrant liability                                                        |   |   | 78         |   |                   |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Issuance expenses                                                                               |   |   |       |   |                   |   |       |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit (loss) before income taxes                                                               |   |   | (269       | )      |                   |   | 735        |   |   |   | (5,644 | ) |   |   | (10,516 | ) |   |   | (10,018 | ) |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                                                    |   |   | -          |   |                   |   | -          |   |   |   | - |   |   |   | (41 | ) |   |   | (33 | ) |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net profit (loss) and comprehensive profit (loss)                                               |   |   | (269       | )      |                   |   | 735        |   |   |   | (5,644 | ) |   |   | (10,557 | ) |   |   | (10,051 | ) |
|                                                                                            |   |   |       |   |                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net loss per share attributable to equity holders of the parent               |   |   | 0.02       |   |                   |   | 0.06       |   |   |   | (0.47 | ) |   |   | (1.19 | ) |   |   | (1.51 | ) |
| Weighted average number of common shares used in computing basic and diluted net loss per share |   |   | 15,439,508 |   |                   |   | 12,158,302 |   |   |   | 12,052,073 |   |   |   | 2,954,241 |   |   |   | 2,151,407 |   |

----

|  | · | the cash flows, if any, generated by operations, investment activities and financing activities; and |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | the level of taxation, particularly corporate profits and withholding taxes. |
|--|--------|------------------------------------------------------------------------------|

----

----

----

----

----

----

----

|  Notes:(1.) Adira Energy Ltd. is a holding corporation and is the registered and beneficial owner of 100% of Adira Energy Holding Corp. Adira Energy Ltd.(2.) Adira Energy Holding Corp. is a holding corporation and is the registered and beneficial owner of Adira's foreign subsidiary, Adira Energy Israel Ltd.      During 2015, the other foreign subsidiaries will have liquidated.(3.) Adira Energy Israel Ltd. is currently inactive. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

----

|          | Year endedDecember 31,    |   |
|---------------|---------------------------|--------|
|          | 2014                      |   | 2013 |   |
|          | U.S. dollars in thousands |   |
|          |                      |   |   |   |
| Consulting    |                      | $      | - |   |   | $ | 7 |   |
| Operator fees |                      |   | - |   |   |   | 5 |   |
| Other Income  |                      |   | - |   |   |   | 5 |   |
|          |                      | $      | - |   |   | $ | 17 |   |

----

----

----

|  | · | Share-based payment transactions; |
|--|--------|-----------------------------------|

|  | · | Impairment of financial assets; and |
|--|--------|-------------------------------------|

|  | · | Warrant liability; |
|--|--------|--------------------|

----

----

| Name(1)                | Position                                                      |
|-----------------------------|--------------------------------------------------------------------|
| Dennis Bennie(2)(3)    | Director and Chairman                                         |
| Alan Friedman(2)       | Director and Executive Vice-President, Corporate Development  |
| Alan Rootenberg(2)(3)  | Director                                                      |
| Gadi Levin             | Chief Executive OfficerChief Financial Officer Secretary           |

| Notes:           |
|------------------|
|    (1) |  | Neither age nor date of birth of directors or senior managers is required to be reported in our home country (Canada) nor otherwise publicly disclosed.  |
| (2)              |   | Member of Audit Committee. |
| (3)              |   | "Independent" for purposes of National Instrument 52-110– Audit Committees ("NI 52-110"). |

----

| Name and Residence                   | Position                                            | Date First Elected/appointed | Principal Occupation During Last 5 Years                                                                                             |
|--------------------------------------|-----------------------------------------------------|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                 |                                                |                         |                                                                                                                                 |
| Gadi LevinLev Hasharon, Israel  | Chief Executive Officer and Chief Financial Officer | January 11, 2011        | VP and Chief Financial Officer for two Israeli investment houses in the fields of private equity, hedge funds and real estate.  |
| Alan FriedmanToronto, Canada         | President, Secretary and Director                   | April 4, 2008                | Founder, President and Chief Executive Officer of Rivonia Capital Inc., South African lawyer                                         |
|                                 |                                                |                         |                                                                                                                                 |
| Dennis BennieToronto, Canada         | Director                                            | April 4, 2008                | Founder, XDL Venture Capital Fund and XDL Capital Invest                                                                             |
|                                 |                                                |                         |                                                                                                                                 |

| Name and Residence             | Position                                            | Date First Elected | Principal Occupation During Last 5 Years                                                                                       |
|--------------------------------|-----------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                           |                                                |               |                                                                                                                           |
| Gadi LevinLev Hasharon, Israel | Chief Executive Officer and Chief Financial Officer | January 11, 2011   | VP and Chief Financial Officer for two Israeli investment houses in the fields of private equity, hedge funds and real estate. |

----

|  | (a) | was subject to an order that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or  |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | was subject to an order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer., other than in the case of Alan Rootenberg where in April 2008, he resigned as interim Chief Financial Officer of Talware Networx Inc., a TSXV listed company. 13 months later, in May 2009, the common shares of Talware Networx Inc. were the subject of a cease trade order and the company was delisted from the TSXV. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | is, as at the date hereof, or has been within the 10 years before the date hereof, a director or executive officer of any corporation (including Adira) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | as, within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (a) | any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Names and Principal  Position                                   |  Salary ($)                 |  Share-Based Awards ($)  |  Option-Based Awards ($)  |  Non-Equity Incentive Plan Compensation ($)  |  Pension Value ($)  |  All Other Compensation ($)  |  Total Compensation ($)  |
|----------------------------------------------------------------------------|---------------------------------------|------------------------------------|-------------------------------------|--------------------------------------------------------|-------------------------------|----------------------------------------|------------------------------------|
|  Annual incentive plans                                          |  Long-term incentive plans  |
|  Gadi Levin, Chief Financial Officer                             |  18                         |  1                       |  -                        |  -                                           |  -                  |  -                           |  -                       |  19  |
|  Alan Friedman, Executive Vice President, Corporate Development  |  19                         |  -                       |  -                        |  -                                           |  -                  |  -                           |  -                       |  19  |

----

----

----

----

----

|  Holder name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  No. of Shares  held  |  Percentage of holding  |  Percentage of holding on a fully diluted basis(1)  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|-----------------------------------|---------------------------------------------------------------|
|  % in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  % in voting          |  % in capital           |  % in voting                                        |
|  Dennis Bennie(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  2886,929             |  16.87%                 |  16.87%                                             |  20.50%  |  20.50%  |
|  Alan Friedman(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  330,273              |  1.93%                  |  1.93%                                              |  1.85%  |  1.85%  |
|  Gadi Levin(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  -                    |                    |  0.00%                                              |  0.35%  |  0.35%  |
|  Alan Rootenberg(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  303,333              |  1.77%                  |  1.77%                                              |  2.72%  |  2.72%  |
|  Notes:(1)  "Fully diluted basis" means with the exercise of all warrants and options.(2)  Mr. Dennis Bennie is an interested party in Adira by virtue of his share holdings and by virtue of him serving as the chairman of the Board. Mr. Bennie indirectly holds all of the shares through companies controlled by himself and through his spouse.(3)  Mr. Alan Friedman is an interested party in Adira by virtue of his share holdings and by virtue of him serving as a director and as Adira's chief business development officer.(4)  Mr. Levin is an interested party in Adira by virtue of him serving as an officer in Adira.(5)  Mr. Rootenberg is an interested party in Adira by virtue of his share holdings and by virtue of him serving as a director in Adira.  |

|  Name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  Position                                                            |  Allotment Date  |  Expiration Date  |  Exercise Price (US Dollar)(1)  |  Vesting Details  |  Total(2)  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|----------------------------|-----------------------------|-------------------------------------------|-----------------------------|----------------------|
|  Dennis Bennie                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  Chairman                                                            |  Aug. 22, 2012   |  Aug. 21, 2017    |  $2.176                         |  R(4)             |  101,333   |
|  Alan Rootenberg                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  Director                                                            |  Aug. 22, 2012   |  Aug. 21, 2017    |  $2.16                          |  R(4)             |  667       |
|  Alan Friedman                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  Executive Vice President,  Corporate Development and Director  |  Aug. 22, 2012   |  Aug. 21, 2017    |  $0.86                          |  R(4)             |  70,667    |
|  Gadi Levin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Chief Executive Officer and Chief Financial Officer                 |  May. 3, 2011    |  May. 2, 2016     |  $6.49                          |  L(3)             |  16,667    |
|  Aug. 22, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  Aug. 21, 2017                                                       |  $2.16           |  R(4)             |  60,667                         |
|  Notes(1)  The exercise prices of employee stock options in 2010 were set in US Dollars and as of 2011, in Canadian Dollars.  The tables show all amounts in US Dollars.(2)  Each stock option may be exercised to purchase one of our common shares at the exercise price.(3)  Type L stock options vest 12.5% every six months over four years with the initial amount vested on September 3, 2011;(4)  Type R stock options vest 33.33% every twelve months over two years with the initial vesting on August 22, 2012.  |

----

| Name            | Position                 | Allotment date | Expiration date | Exercise price | Total     |
|-----------------|--------------------------|----------------|-----------------|----------------|-----------|
| Dennis Bennie   | Co-Chairman of the Board | May 7, 2015    | May 6, 2018     | US$0.04        | 2,000,000 |
| Alan Rootenberg | Director                 | May 7, 2015    | May 6, 2018     | US$0.04        | 300,000   |

|   Plan Category                                                                                                                                                                                                                                                                                                                             |   Number of securities to be issued upon exercise of outstanding options, warrants and rights  |   Weighted-average exercise price of outstanding options, warrants and rights  |  Number of securities remaining available for future issuance under equity compensation plans(1) (excluding securities reflected in the second column)  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Equity compensation plans approved by securityholders                                                                                                                                                                                                                                                                                      |  5,091,334                                                                                     |  0.20                                                                          |  1,493,869                                                                                                                                              |
|  Equity compensation plans not approved by securityholders                                                                                                                                                                                                                                                                                  |  N/A                                                                                           |  N/A                                                                           |  N/A                                                                                                                                                    |
|  Total:                                                                                                                                                                                                                                                                                                                                     |  5,091,334                                                                                     |  0.20                                                                          |  1,493,869                                                                                                                                              |
|  Notes:(1)  The number of securities remaining available for future issuance under our 10% rolling stock option plan as at the end of our most recently completed financial year is calculated on the basis of 10% of our issued and outstanding common shares as at such date (being 10% of 17,112,022 – 271,333 = 1,493,869).  |

----

| Name                            | Number of Common Shares Owned(1)(2) | Percentage(3) |
|---------------------------------|-------------------------------------|---------------|
| Dennis Bennie                   | 2,886,929(4)                        | 16.87%        |
| Goodman Investment Counsel Inc. | 1,055,180(5)                        | 6.17%         |

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|  Notes: (1)  Under Rule 13d–3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares.  Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares).  In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided.  In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights.  As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person's actual ownership or voting power with respect to the number of common shares actually outstanding on the date hereof.(2)   Each of our common shares entitles the holder thereof to one vote.(3)   Based on 17,112,022 common shares of Adira issued and outstanding as of the date of this filing.(4)   Includes shares held by spouse.(5)   Includes shares held by Goodman Investment Counsel Inc. and associated companies that are controlled by Mr. Nathan Goodman. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Location      | Number of Shares | Percentage of Total Shares | Number of Registered Shareholders of Record |
|---------------|------------------|----------------------------|---------------------------------------------|
| United States | 107,622          | 0.63                       | 57                                          |
| Canada        | 16,265,784       | 95.0.5                     | 40                                          |
| Other         | 738,616          | 4.32                       | 21                                          |
| Total         | 17,112,022       | 100                        | 118                                         |

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|  | (a) | During the year ended December 31, 2015, we incurred $58 thousand in consulting fees and operating expenses to private companies which are controlled by some of our directors or officers (year ended December 31, 2013 - $233 thousand). These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Compensation of key management personnel: For the purpose of related party disclosure in accordance with IASB 24, directors, the CEO, CFO, COO and executive vice president are considered key management personnel. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         | Year endedDecember 31,    |   |   |   |
|------------------------------|---------------------------|--------|--------|--------|
|                         | 2015                      |   | 2014   |   | 2013 |   |
|                         | U.S. dollars in thousands |   |
|                         |                      |   |   |   |   |   |
| Short-term employee benefits |                      | $      | 38     |   |   | $ | 212 |   |   | $ | 1,133 |   |
| Share based compensation     |                      |   | 1      |   |   |   | 22 |   |   |   | 16 |   |
|                         |                      |   |   |   |   |   |   |   |   |   |   |   |
|                         |                      | $      | 39     |   |   | $ | 234 |   |   | $ | 1,149 |   |

|                     | Year endedDecember 31,    |   |   |   |
|--------------------------|---------------------------|--------|--------|--------|
|                     | 2015                      |   | 2014   |   | 2013 |   |
|                     | U.S. dollars in thousands |   |
|                     |                      |   |   |   |   |   |
| Share based compensation |                      | $      | 46     |   |   | $ | 38 |   |   | $ | 32 |   |

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|                            |   | High ($) |   |   | Low ($) |   |
|---------------------------------|--------|----------|--------|--------|---------|--------|
| Annual (fiscal year)            |   |     |   |   |    |   |
| 2015                            |   |     | 0.085  |   |    |   | 0.03 |   |
| 2014                            |   |     | 0.20   |   |    |   | 0.01 |   |
| 2013                            |   |     | 1.78   |   |    |   | 0.06 |   |
| 2012                            |   |     | 5.10   |   |    |   | 1.37 |   |
| 2011                            |   |     | 13.47  |   |    |   | 3.32 |   |
|                            |   |     |   |   |    |   |   |   |
|                            |   |     |   |   |    |   |   |   |
| Quarterly                       |   |     |   |   |    |   |   |   |
| Fiscal 2015                     |   |     |   |   |    |   |   |   |
| Fourth Quarter                  |   |     | 0.03   |   |    |   | 0.02 |   |
| Third Quarter                   |   |     | 0.04   |   |    |   | 0.02 |   |
| Second Quarter                  |   |     | 0.06   |   |    |   | 0.03 |   |
| First Quarter                   |   |     | 0.06   |   |    |   | 0.03 |   |
| Fiscal 2014                     |   |     |   |   |    |   |   |   |
| Fourth Quarter                  |   |     | 0.10   |   |    |   | 0.03 |   |
| Third Quarter                   |   |     | 0.19   |   |    |   | 0.02 |   |
| Second Quarter                  |   |     | 0.20   |   |    |   | 0.04 |   |
| First Quarter                   |   |     | 0.10   |   |    |   | 0.01 |   |
|                            |   |     |   |   |    |   |   |   |
| Monthly                         |   |     |   |   |    |   |   |   |
| April 1, 2016 to April 27, 2016 |   |     | 0.01   |   |    |   | 0.01 |   |
| March 2016                      |   |     | 0.01   |   |    |   | 0.01 |   |
| February 2016                   |   |     | 0.01   |   |    |   | 0.01 |   |
| January 2016                    |   |     | 0.02   |   |    |   | 0.01 |   |
| December 2015                   |   |     | 0.02   |   |    |   | 0.02 |   |
| November 2015                   |   |     | 0.02   |   |    |   | 0.02 |   |

|                 |   | High ($) |   |   | Low ($) |   |
|----------------------|--------|----------|--------|--------|---------|--------|
| Annual (fiscal year) |   |     |   |   |    |   |
| 2015                 |   |     | 0.04   |   |    |   | 0.04 |   |
| 2014                 |   |     | 0.20   |   |    |   | 0.03 |   |
| 2013                 |   |     | 1.73   |   |    |   | 0.05 |   |
| 2012                 |   |     | 5.10   |   |    |   | 1.35 |   |
| 2011                 |   |     | 13.50  |   |    |   | 3.00 |   |

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| Quarterly                       |   |   |   |   |   |   |   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fiscal 2015                     |   |   |   |   |   |   |   |   |
| Fourth Quarter                  |   |   | 0.05   |   |   |   | 0.04   |   |
| Third Quarter                   |   |   | 0.06   |   |   |   | 0.03   |   |
| Second Quarter                  |   |   | 0.08   |   |   |   | 0.04   |   |
| First Quarter                   |   |   | 0.09   |   |   |   | 0.04   |   |
| Fiscal 2014                     |   |   |   |   |   |   |   |   |
| Fourth Quarter                  |   |   | 0.11   |   |   |   | 0.05   |   |
| Third Quarter                   |   |   | 0.15   |   |   |   | 0.05   |   |
| Second Quarter                  |   |   | 0.20   |   |   |   | 0.05   |   |
| First Quarter                   |   |   | 0.10   |   |   |   | 0.03   |   |
|                            |   |   |   |   |   |   |   |   |
| Monthly                         |   |   |   |   |   |   |   |   |
| April 1, 2015 to April 27, 2016 |   |   | 0.04   |   |   |   | 0.04   |   |
| March 2016                      |   |   | 0.04   |   |   |   | 0.04   |   |
| February 2016                   |   |   | 0.04   |   |   |   | 0.04   |   |
| January 2016                    |   |   | 0.04   |   |   |   | 0.04   |   |
| December 2015                   |   |   | 0.04   |   |   |   | 0.04   |   |
| November 2015                   |   |   | 0.04   |   |   |   | 0.04   |   |

----

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|  | (a) | the acquisition of voting shares or other voting interests by any person in the ordinary course of that person's business as a trader or dealer in securities; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | the acquisition of control of our Company in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of this Act, if the acquisition is subject to approval under the Bank Act (Canada), the Cooperative Credit Associations Act (Canada), the Insurance Companies Act (Canada) or the Trust and Loan Companies Act (Canada); and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the acquisition of control of our Company by reason of an amalgamation, merger, consolidation or corporate reorganization following which the ultimate direct or indirect control of our Company, through the ownership of voting interests, remains unchanged. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | · | an individual who is a citizen or resident of the U.S.; |
|--|--------|---------------------------------------------------------|

|  | · | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the U.S., any state thereof or the District of Columbia; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | an estate whose income is subject to U.S. federal income taxation regardless of its source; or |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | a trust that (1) is subject to the primary supervision of a court within the U.S. and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 14 | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
|---------|------------------------------------------------------------------------------|

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|  | - | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; |
|--|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and |
|--|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that may have a material effect on the financial statements. |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                |   | Period Ended December 31 |   |
|---------------------|--------|--------------------------|--------|
|                |   | 2015                     |   |   | 2014 |   |
| Audit Fees:         |   | $                        | 25,000 |   |   | $ | 25,000 | (1)  |
| Audit Related Fees: |   |                     | -      |   |   |   | - |   |
| Tax Fees:           |   | $                        | 5,000  |   |   | $ | 23,000 | (2)  |
| Total:              |   | $                        | 30,000 |   |   | $ | 48,000 |   |

|  | (1) | of which $3,300 relates to Kost Forer Gabbay & Kasierer, our previous auditors |
|--|-----|------------------------------------------------------------------------------------|

|  | (2) | of which $11,500 relates to Kost Forer Gabbay & Kasierer our previous auditors |
|--|-----|------------------------------------------------------------------------------------|

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|  | · | Report of Independent Registered Public Accounting Firm dated April 28, 2016; |
|--|--------|-------------------------------------------------------------------------------|

|  | · | Consolidated statement of financial position for the fiscal years ended December 31, 2015 and 2014; |
|--|--------|-----------------------------------------------------------------------------------------------------|

|  | · | Consolidated statements of comprehensive income for the fiscal years ended December 31, 2015, 2014 and 2013; |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | · | Consolidated statements of changes in shareholder's equity for the fiscal years ended December 31, 2015, 2014 and 2013; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | · | Consolidated statements of cash flows for the fiscal years ended December 31, 2015, 2014 and 2013; and |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | Notes to consolidated financial statements |
|--|--------|--------------------------------------------|

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|  Exhibit Number  |  Description                                                                                                                               |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|  1.1             |  Articles of Conversion (1)                                                                                                                |
|  1.2             |  Articles of Continuance (1)                                                                                                               |
|  1.3             |  By-Laws (1)                                                                                                                               |
|  1.4             |  Certificate and Articles of Amendment (3)                                                                                                 |
|  1.5             |  Certificate and Articles of Amendment (5)                                                                                                 |
|  4.1             |  2009 Stock Option Plan (2)                                                                                                                |
|  4.2             |  Nominee Agreement with BRM Group Ltd (4)                                                                                                  |
|  8.1             |  List of Subsidiaries (5)                                                                                                                  |
|  12.1            |  Certificate of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (5)                                  |
|  12.2            |  Certificate of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (5)                                      |
|  13.1            |  Certificate of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (5)  |

| (1) | Incorporated by reference from our current report on Form 8-K filed with the SEC on December 2, 2008. |
|-----|-------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference from our Form 20-F shell company report filed with the SEC on September 4, 2009. |
|-----|------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference from our Form 20-F report filed with the SEC on January 22, 2010. |
|-----|---------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference from our Form 20-F report filed with the SEC on February 3, 2011. |
|-----|---------------------------------------------------------------------------------------------|

| (5) | Filed as an exhibit hereto. |
|-----|-----------------------------|

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| ADIRA ENERGY LTD.    |
|----------------------|
|                 |   |
|                 |   |
| Per:                 | /s/ Gadi Levin                                                                                       |
| Name:                | Gadi Levin |
| Title:               | Chief Executive Officer and Chief Financial Officer |
|                 |   |
|                 |   |
| Date: April 28, 2016 |

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