Officers from the PSNI’s Organised Crime Branch searched an area of Woodhouse Road, Coalisland and four other premises in the Mid Ulster area on Friday.
Along with the drugs they also seized drug related paraphernalia for cutting, weighing and bagging the drugs.
Officers also seized a suspected stolen car and a large volume of criminal property linked to organised criminality, police said.
Two men aged 24 and 27 arrested over the haul have been charged with possession of criminal property and drugs offences.
They are due to appear at Omagh Magistrates’ Courr this morning, Saturday, March 30, for a first remand hearing.
The operation follows a number of other linked searches in the Mid Ulster area over the past six months where police seized a further £565,000 of Class A Controlled drugs.
Detective Inspector Keith Gawley of the OCB said: “These arrests and seizures are further evidence of our ongoing commitment to removing and disrupting the illegal supply of drugs in Northern Ireland.
“We know that drugs can ruin lives and line the pockets of organised criminals, and we are determined to disrupt these criminal gangs.
“We are committed to making Northern Ireland a hostile environment for those in our community who are involved in the drugs trade and anyone involved in the drugs trade, or anyone tempted to become involved should be under no illusion – we will seek to identify them, arrest them and place them before the courts.
“I would appeal to anyone who has any information to call us on the non-emergency number 101, quoting reference number 759 of 16/02/19.
“Alternatively, information can also be provided to the independent charity Crimestoppers on 0800 555 111, which is 100% anonymous and gives people the power to speak up and stop crime.”