Mr. Glen Akselrod reports

LED MEDICAL DIAGNOSTICS ANNOUNCES CLOSING OF SENIOR SECURED DEBENTURES

On Dec. 22, 2016, LED Medical Diagnostics Inc. completed its previously announced financing of $800,000 through the issuance of: (i) 12-per-cent senior secured debentures of the company in the aggregate amount of $150,000, maturing after 24 months, and (ii) 12-per-cent senior secured debentures of LED Dental Inc., a wholly owned direct subsidiary of the company, in the aggregate amount of $650,000, maturing after 24 months. The debentures were issued to Bloom Burton Healthcare Lending Trust II as part of a non-brokered private placement. The LED Medical debentures were issued as units consisting of: (i) LED Medical debentures in the aggregate principal amount of $150,000, and (ii) a total of 320,000 common shares of the company. The subscription price for the units was $150,000.

The company issued an additional 1.38 million common shares of the company to Bloom Burton Healthcare Lending Trust II as a loan bonus in accordance with Policy 5.1 of the TSX Venture Exchange in connection with the issuance of the LED Dental debentures.

The proceeds will be used by LED for working capital and general corporate purposes.

All securities, other than the LED Dental debentures, issued in connection with the transaction are subject to a hold period expiring four months and one day after the closing date. The LED Dental debentures are subject to a hold period expiring four months and one day after the later of: (i) the closing date, and (ii) the date that LED Dental becomes a reporting issuer under Canadian Securities laws in any province or territory of Canada.

About LED Medical Diagnostics

LED Medical Diagnostics provides dentists and oral health specialists with advanced diagnostic imaging products and software, in addition to the award-winning VELscope Vx tissue fluorescence visualization technology.