Mr. Vaughn Embro-Pantalony reports

MICROBIX CLOSES PRIVATE PLACEMENT

Microbix Biosystems Inc. has closed a private placement financing resulting in the issuance of 3,134,025 units at a price of 39 cents per unit for gross proceeds of $1,222,269. Each unit consists of one common share of Microbix and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at an exercise price of 55 cents for five years.

Insiders of the company participated in the financing by purchasing an aggregate of 1,964,615 units. The financing was non-brokered. A total of 34,910 finders' warrants were issued. Each finder's warrant entitles the holder to purchase one unit at a price of 47 cents for a period of five years. The net proceeds of this financing will be used for general working capital purposes across the company's businesses. The securities issued in the private placement are subject to a hold period of four months and one day from the date of issue. The private placement remains subject to the final approval of the Toronto Stock Exchange.

Vaughn Embro-Pantalony, president and chief executive officer of Microbix, commented on this private placement: "We are working to rapidly advance several growth-oriented projects at our company. We believe the proceeds of this private placement will help ensure that there are no funding-related delays to our targeted timelines. Also, I am very pleased with the significant level of insider participation in this financing, which is a strong vote of confidence in our company's performance and future direction."

We seek Safe Harbor.