Mr. Christopher Moreau reports

ALGERNON ANNOUNCES CLOSING OF THE PRIVATE PLACEMENT FINANCING

Algernon Pharmaceuticals Inc. has closed a second tranche of its non-brokered private placement, previously announced on May 27, 2025, and with updated terms and the closing of the first tranche announced on June 30, 2025. Gross proceeds from the first and the second tranche totalled $761,000 from the sale of subscription receipts.

Certain insiders of the company participated in the offering in the amount of $90,000. 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 did not pay any cash finders' fees pertaining to the second tranche of the offering.

The company will use the proceeds of the second tranche of the offering toward advancing its new Alzheimer's disease initiative for the opening of its first U.S. neuroimaging clinic planned to open in Q4 (fourth quarter) 2025, for general and administrative expenses, and for working capital purposes.

The company is also announcing that the offering is now closed.

The securities issued and issuable, described in this and the previous news releases on May 27, 2025, and June 30, 2025, 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 medical 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, which is advancing a psychedelic program investigating a proprietary form of DMT for stroke and traumatic brain injury.

We seek Safe Harbor.