Mr. Yves Leduc reports

VELAN ANNOUNCES ELECTION OF DIRECTORS

Each director nominee listed in the management proxy circular dated May 24, 2018, was elected as a director of Velan Inc. during the annual meeting of the shareholders held on July 12, 2018, in Montreal, Que.

The details of the election are as set out in the attached table.

Director nominee            Outcome          Votes for        % for        Votes withheld       % withheld

Tom Velan                   Elected         80,968,557        98.79               988,322             1.21
William Sheffield           Elected         80,676,678        98.44             1,280,201             1.56
Cheryl Hooper               Elected         80,677,678        98.44             1,279,201             1.56
Jacques Latendresse         Elected         80,676,678        98.44             1,280,201             1.56
Robert Velan                Elected         80,968,057        98.79               988,822             1.21
Yves Leduc                  Elected         81,573,057        99.53               383,822             0.47
James A. Mannebach          Elected         80,998,978        98.83               957,901             1.17

Peter Velan did not stand for re-election.

The results of the final votes regarding all matters subject to a vote during the annual meeting will be made available under the corporation's profile on SEDAR.