Mr. Guy Cook reports

LATTICE BIOLOGICS ANNOUNCES NEW PRIVATE PLACEMENT

Lattice Biologics Ltd. has arranged a new private placement of units of the company at a price of 20 cents per unit, for gross proceeds of up to $800,000 (U.S.). Each unit consists of one common share in the capital stock of the company and one-half of one non-transferable common share purchase warrant. Each whole warrant is exercisable into an additional common share at a price of 26.5 cents per common share for a period of 36 months from the date of closing the offering.

The proceeds from the offering will be used for general working capital, including increasing production of the company's recently launched 100-per-cent natural, minimally processed amniotic fluid supplement for the treatment of joint pain associated with osteoarthritis. The offering is subject to TSX Venture Exchange acceptance.

This is the latest development in the company's continuing forward momentum. The announcement follows on the heels of the company's recent elimination of $667,252 (U.S.) of outstanding debt (announced on Dec. 8, 2016). Additionally, this development supports the company's continuing research and development efforts, including advancement for its LatBioGel, a revolutionary product powered by the company's proprietary extracellular matrix (ECM) technology. LatBioGel's innovation lies in its ability to accurately recreate complex tumour microenvironments for more accurate chemotherapy analysis.

About Lattice Biologics

Lattice Biologics is an emerging precision medicine leader in the field of cellular therapies and tissue engineering, with an emphasis on bone, skin and cartilage regeneration. As a manufacturer of the highest-quality allografts, Lattice is focused on next-generation products to improve surgical outcomes.

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