Mr. Michael Moore reports

ONCOLYTICS BIOTECH PRICES USD $8,000,000 MILLION PUBLIC OFFERING OF COMMON SHARES

Oncolytics Biotech Inc. has priced its underwritten public offering of 1,372,213 common shares. The shares are being sold at a public offering price of $5.83 (U.S.) per share. The gross offering proceeds to the company from this offering are expected to be approximately $8-million (U.S.), before deducting underwriting discounts and commissions and other estimated offering expenses. All of the shares are being offered by the company and purchased by the underwriter. The offering is expected to close on or about June 5, 2018, subject to the satisfaction of customary closing conditions.

Oncolytics's common stock has been approved for listing on the Nasdaq Capital Market and will begin trading thereon under the symbol ONCY at the opening of trading on Friday, June 1, 2018.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc., is acting as the sole bookrunning manager in connection with the offering.

Oncolytics has granted the underwriter a 30-day option to purchase an additional 205,832 shares to cover overallotments, if any.

The offering is subject to customary closing conditions, including Nasdaq and Toronto Stock Exchange approvals. The company intends to use the net proceeds of the offering for research and development activities and working capital purposes.

The offering is being made pursuant to a U.S. registration statement on Form F-10, declared effective by the U.S. Securities and Exchange Commission (SEC) on May 7, 2018, and the company's existing Canadian short form base shelf prospectus dated April 25, 2018. The prospectus supplements relating to the offering has been filed with the Alberta Securities Commission in Canada and with the SEC in the United States. No common shares will be offered or sold to Canadian purchasers. The offering documents will contain important detailed information about the securities being offered. Before you invest, you should read the offering documents and the other documents the company has filed with the SEC for more complete information about the company and the offering. Copies of the offering documents will be available free of charge by visiting the company's profile on SEDAR or the SEC's website. Alternatively, when available, copies of the prospectus supplement can also be obtained from Ladenburg Thalmann & Co., attention: prospectus department, 277 Park Ave., 26th floor, New York, N.Y., 10172, by calling 212-409-2000.

About Oncolytics Biotech Inc.

Oncolytics is a biotechnology company developing Reolysin, also known as pelareorep, an intravenously delivered immuno-oncolytic virus. Oncolytics is currently planning its first registration study in metastatic breast cancer as well as studies in combination with checkpoint inhibitors and targeted and IMiD therapies in solid and hematological malignancies.

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