Mr. Ian Ihnatowycz reports

FIRST GENERATION CAPITAL INC. AMENDS PREVIOUSLY ISSUED CONVERTIBLE NOTE OF TRIMEL PHARMACEUTICALS CORPORATION

Effective July 30, 2014, Ian Ihnatowycz has entered into an amending agreement to the $25-million (U.S.) convertible note of Trimel Pharmaceuticals Corp. issued on July 16, 2014, to his private investment holding company First Generation Capital Inc.

Pursuant to the amending agreement, the maximum number of common shares issuable on conversion of the note has been reduced from 37,746,796 to 8,945,796. The remaining terms of the note are unchanged. If the maximum amount of the note that may be converted was converted in accordance with its terms, the offeror would hold a total of 47,602,093 common shares of the issuer, corresponding to a securityholding percentage of approximately 23.7 per cent (based on a total of 200,873,234 common shares outstanding following any such conversion, as advised by the issuer).

The note was acquired for investment purposes. Depending upon the circumstances, Mr. Ihnatowycz may, from time to time, acquire additional securities or related financial instruments of the issuer or dispose of all or a portion of the securities or related financial instruments of the issuer previously acquired.

Additional information is provided in the early warning report filed on SEDAR.