Mr. Gord Froehlich reports

KANE BIOTECH PROVIDES BUSINESS AND PATENT UPDATE

Kane Biotech Inc. has provided an update to shareholders on the company's business objectives and plans.

The company continues to focus its resources on the companion animal oral care market at this time. The objective is to establish a portfolio of products and market test these products to build and strengthen the company's value proposition. Additional activities included in achieving this value proposition are pricing models, market messaging, promotional material, manufacturing SOPs and the development of new applications.

Kane has now completed the development, testing and introduction of a number of products. The company's StrixNB oral care portfolio consists of a liquid water additive, oral care spray, a single serving powder sachet and a bulk powder. In addition, Kane is developing and testing an oral care foam, a toothpaste and a chew. These products will allow the company to offer the market a complete and unique portfolio of products, with the potential for more products to come.

Kane's strategy remains to license its technology to industry leaders in both the animal and human health markets. Kane continues to work with potential strategic partners to advance this area of the business. While this strategy remains the company's priority and discussions continue it is taking longer than it had initially expected and Kane is no longer bound by an agreement to an exclusive option with a specific global health care company allowing the company to further engage other opportunities.

In the human health care market, DispersinB shampoo and DispersinB skin care cream have received approvals from Health Canada. The company's KBI hard surface disinfectant for anti-microbial claims in the ready-to-use and concentrate formulations has also received approval from Health Canada.

The company will be conducting a financing shortly to increase its working capital to bring these products to market and drive the company's business forward. The financing will be supported by insiders and details will be announced at a later date.

Kane has also recently received two additional patents from the U.S. Patent and Trademark Office.

The patent entitled "Biofilm removing anti-microbial compositions and uses thereof" was issued by the U.S. Patent and Trademark Office (U.S. patent No. 8,753,692). This patent claims the synergistic combination of sodium metaperiodate and chlorhexidine developed for anti-biofilm-anti-microbial hard surface disinfectant applications for the company's hard surface disinfectant technology.

The second patent entitled "Soluble beta-N-acetylglucosaminidase based anti-biofilm compositions and uses thereof" was issued by the U.S. Patent and Trademark Office (U.S. patent No. 8,821,862). The patent claims synergistic combinations of beta-N-acetylglucosaminidase enzyme with anti-microbials developed for wound care applications and medical device coating technology.

A third patent entitled "anti-microbial compositions and uses thereof" is under review and may be issued in the coming months by the U.S. Patent and Trademark Office. This patent covers the company's Protamine sulphate-Chlorhexidine technology for anti-biofilm-anti-microbial coating of medical devices to prevent hospital-acquired infections.

In other updates, Dr. Sri Madhyastha (chief scientific officer and vice-president of research) has left the company for personal reasons. The company wishes him all the best in his future endeavours. The company has also submitted its data package to the LRVHP (Low Risk Veterinary Health Products) for its companion animal shampoo for dermatology uses.

"Over the spring and summer our team at Kane Biotech has been working diligently to develop new products, obtain approvals, market testing these products, obtain third party endorsement and get customer feedback from the market," stated Gord Froehlich, the president and chief executive officer. "Innovation is needed more than ever as mankind combats the ongoing evolution of bacteria and their developing resistances to many antibiotic/anti-microbial approaches. Biofilms are a critical piece in achieving a solution to this problem and we are committed to unlocking this opportunity and creating value for our customers and shareholders as we look forward to the future."

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