Mr. Christopher Moreau reports

ALGERNON PHARMACEUTICALS ANNOUNCES PRIVATE PLACEMENT

Algernon Pharmaceuticals Inc. has arranged a non-brokered private placement for gross proceeds of $150,000 of units at an issue price of 7.5 cents per unit. Each unit will consist of one Class A common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at an exercise price of 20 cents per warrant share for a period of two years from the date of issuance, subject to acceleration of the expiry date as described below. The offering is expected to close on Dec. 20, 2023.

The warrants are subject to accelerated expiry in the event the volume-weighted average trading price of the common shares exceeds 40 cents for 20 consecutive trading days. The company may, within 10 business days of the occurrence of such event, deliver a notice to the holders of the warrants accelerating the expiry date of the warrants to a date that is not less than 30 days following the date of such notice and the issuance of a press release by the company announcing the acceleration notice. Any unexercised warrants shall automatically expire at the end of the accelerated exercise period.

The company may pay cash finders' fees and finders' warrants to eligible finders, up to 8 per cent of the proceeds raised and units issued for investors introduced to the company by the eligible finder.

The company will use the proceeds of the private placement for working capital purposes.

The securities issued and issuable, described in this news release, will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable Canadian securities legislation.

About Algernon Pharmaceuticals Inc.

Algernon Pharmaceuticals is a Canadian clinical-stage drug development company investigating multiple drugs for unmet global medical needs. Algernon Pharmaceuticals has active research programs for chronic cough and chronic kidney disease, and is the parent company of a private subsidiary called Algernon NeuroScience, which is advancing a psychedelic program investigating a proprietary form of DMT (dimethyltryptamine) for stroke and traumatic brain injury.

We seek Safe Harbor.