Dr. Wayne Danter reports

CRITICAL OUTCOME TECHNOLOGIES AWARDS STOCK OPTIONS

Critical Outcome Technologies Inc. awarded stock options to buy 1,801,099 shares to directors, officers and employees under the company's stock option plan on Oct. 22, 2014. The options awarded to directors were made as a retainer for their service on the board and its committees for the ensuing year. The options were awarded to officers and employees by the board on a discretionary basis for their meritorious efforts during the past year. The options have a five-year life with 25 per cent of vesting occurring at the end of each quarter from the date of grant as applicable. The exercise price is 29 cents and represents the closing price of the company's common shares on Oct. 21, 2014, the last trading day reported on the TSX Venture Exchange prior to the grant meeting date.

"Our history of compensating the board of directors with stock options for their service demonstrates the directors' belief and commitment to the company's future," said company chairman, John Drake. "In keeping with this philosophy, the board eliminated the practice of paying cash meeting fees, effective with the recent board meeting, and increased the notional cash value of retainer compensation paid by issuing options, thus reflecting management's belief in our key value-building initiatives such as COTI-2, our p53-dependent lead oncology program."