Mr. Guy Cook reports

LATTICE BIOLOGICS CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT ANNOUNCED ON JANUARY 19, 2017

Lattice Biologics Ltd. has closed the first tranche of the non-brokered private placement of units of the company announced on Jan. 19, 2017. The company issued 459,880 units at a price of 20 cents per unit, representing aggregate gross proceeds of $70,000 (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 common shares, and any common shares issuable upon exercise of the warrants, will be subject to a hold period expiring on May 24, 2017.

Lattice Biologics has received conditional approval for the offering from the TSX Venture Exchange.

The net proceeds from the offering will be used for general working capital, including increasing production of Lattice's recently launched 100-per-cent natural, minimally processed amniotic fluid supplement for the treatment of joint pain associated with osteoarthritis. Additionally, the proceeds will be used to support the company's continuing research and development efforts, including advancement for high-throughput precision chemotherapy screening, which capitalizes on Lattice's proprietary extracellular matrix (ECM) technology.

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.

We seek Safe Harbor.