Mr. Christopher Moreau reports

ALGERNON PHARMACEUTICALS ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Algernon Pharmaceuticals Inc. has closed its non-brokered private placement, previously announced on Dec. 12, 2023, and updated on Dec. 27, 2023, for gross proceeds of $280,000 of units at an issue price of 7.5 cents per unit.

Certain insiders of the company participated in the offering in the amount of $173,505. The participation by insiders in the offering constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the common shares purchased by insiders nor the consideration for the units paid by such insiders exceeded 25 per cent of the company's market capitalization. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, which the company deems reasonable in the circumstances as the details of the participation by insiders of the company were not settled until shortly prior to closing the offering and the company wished to complete the offering in an expeditious manner.

The company paid cash finders' fees totalling $9,000 and issued 120,000 finder warrants to eligible finders for investors introduced to the company by the eligible finders.

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

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 Algernon NeuroScience Inc., which is advancing a psychedelic program investigating a proprietary form of DMT (dimethyltryptamine) for stroke and traumatic brain injury.

We seek Safe Harbor.