Mr. Christopher Moreau reports

ALGERNON ANNOUNCES AMENDED TERMS FOR PRIVATE PLACEMENT AND CLOSING OF THE FIRST TRANCHE TOTALING $621,000

Algernon Pharmaceuticals Inc. has amended pricing and warrant terms for its non-brokered private placement for gross proceeds of $1-million of units of common shares or subscription receipts previously announced on May 27, 2025. The company is amending the issue price to six cents per common unit from seven cents per common unit and to 60 cents per subscription receipt from 70 cents per preferred unit. The company expects 25 per cent of the offering to be completed with common units and 75 per cent to be completed with subscription receipts. Each common unit will consist of one Class A common share in the capital of the company and one-half common share purchase warrant. Each full common warrant will entitle the holder to acquire one common share at an exercise price of 15 cents per common warrant share for a period of 12 months from the issuance date, after which, on the first anniversary of the issuance date, the common exercise price will increase to 25 cents per common warrant share for a period of 12 months from the first anniversary, and on the second anniversary of the issuance date, the common exercise price will increase to 50 cents per common warrant share for a period of 36 months from the second anniversary.

Each subscription receipt will be issued for 60 cents, and each subscription receipt will be deemed converted into one preferred unit if certain release conditions are met by the company within 120 days of the issuance of the subscription receipt or, if the release conditions are not met, 10 common units.

Each preferred unit will consist of one preferred share in the capital of the company and one-half preferred share purchase warrant. Each full preferred warrant will entitle the holder to acquire one preferred share at an exercise price of $1.50 per preferred warrant share for a period of 12 months from the issuance date, after which, on first the anniversary, the preferred exercise price will increase to $2.50 per preferred warrant share for a period of 12 months from the first anniversary, and, on the second anniversary, the preferred exercise price will increase to $5 per preferred warrant share for a period of 36 months from the second anniversary.

Additionally, the company has closed the first tranche of the offering for gross proceeds of $621,000 with the issuance of 1,035,000 subscription receipts.

The company paid cash finders' fees pertaining to the first tranche totalling $16,800 and will issue finders' warrants upon the conversion of the subscription receipts to eligible finders for investors introduced to the company by the eligible finder.

The company will use the proceeds of the private placement toward advancing its new AD program toward the opening of its first U.S. AD clinic in fourth quarter 2025, for general and administrative expenses, and for working capital purposes.

The company expects additional tranches of the offering to close on or before July 15, 2025.

The common warrants and preferred warrants are subject to an acceleration of their price if, prior to the first anniversary, the common shares trade on the Canadian Securities Exchange at a price of 20 cents or greater for a period of 20 consecutive trading days. Following 30 days written notice to the holders of common warrants, the common exercise price will increase to 25 cents per common warrant share until the date of the second anniversary, and, on the second anniversary, the common exercise price will increase to 50 cents per common warrant share for a period of 36 months from the second anniversary. Additionally, the preferred exercise price will increase to $2.50 per preferred warrant share until the date of the second anniversary, and, on the second anniversary, the preferred exercise price will increase to $5 per preferred warrant share for a period of 36 months from the second anniversary.

The company will expedite its annual meeting to seek shareholder approval for the preferred share issuance before the end of October, 2025. Assuming the company receives shareholder approval, the preferred shares are convertible into, without payment of any consideration and without further action on the part of the holder thereof, 10 common shares. The preferred shares will include a 10-per-cent annual dividend payable in common shares or preferred shares at the discretion of the company's board of directors. If shareholder approval is not obtained, the preferred shares will be adjusted to common shares on a one-for-10 basis.

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 on additional tranches of the offering.

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 health care company pioneering the establishment of Alzheimer's screening, imaging and treatment clinics in North America, while also advancing clinical-stage pharmaceuticals through the investigation of multiple drugs for unmet global medical needs.

Algernon Pharmaceuticals is also the parent company of a private subsidiary called Algernon NeuroScience, that is advancing a psychedelic program investigating a proprietary form of DMT for stroke and traumatic brain injury.

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