Mr. Andre Larente reports

DIAGNOS CLOSES PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

Diagnos Inc. has closed a private placement for $1.59-million of senior secured convertible debentures, initially announced on June 30, 2015. As of this date, the corporation has received subscription commitments for an additional $700,000. It expects to close this second tranche of the private placement on or about Aug. 7, 2015, for gross total proceeds of at least $2.29-million. Net proceeds from the private placement will be used to finance business development and product development of health care services, as well as for general corporate and working capital purposes.

The debentures bear interest at an annual rate of 10 per cent and will mature on July 29, 2019. Interest on the debentures is calculated from their date of issue and will be paid quarterly in arrears beginning Oct. 29, 2016. The first year of interest will be paid at the maturity date and will be compounded annually.

At the sole option of the holders of the debentures, the principal amount of the debentures may be converted at any time, in whole or in part, into common shares of the corporation at a price of 10 cents per common share. Any accrued interest on the principal, at time of conversion, will be immediately payable in cash.

As previously announced, the corporation retained the services of Bloom Burton & Co. Ltd. to act as its exclusive agent in connection with the private placement. Under the terms of an agency agreement entered into between Bloom Burton and the corporation, Bloom Burton and other brokers received a commission in cash of $48,300 and were issued 322,000 brokers warrants equal to the amount of commission paid divided by 15 cents. Each warrant is exercisable for one common share at a price of 15 cents per common share over a two-year period ending July 29, 2017. The warrants are non-transferable.

The corporation also entered into a finder's fee agreement with First Republic Capital Corp. under similar terms to the agency agreement. In accordance with the agreement, First Republic will receive a commission in cash of $14,000 and 93,333 warrants bearing the same terms, conditions and exercise price as the warrants issued to Bloom Burton and the other brokers. The warrants issued to First Republic also expire on July 29, 2017.

The debentures, the warrants and the underlying common shares are subject to a four-month hold period from the closing date ending on Nov. 30, 2015.

The private placement remains subject to the final approval of the TSX Venture Exchange.

All moneys quoted in this press release were stated and paid in lawful money of Canada.

We seek Safe Harbor.