Mr. Christopher Moreau reports

ALGERNON CLOSES FIRST TRANCHE OF ITS RECENTLY ANNOUNCED PRIVATE PLACEMENT FINANCING

Algernon Health Inc. has closed the first tranche of its non-brokered private placement, previously announced on Nov. 6, 2025. Gross proceeds from the first tranche totalled $177,000 from the sale of 2,528,752 units at an issue price of seven cents per unit.

Certain insiders of the company participated in the first tranche of the offering in the amount of $37,000. The participation by insiders in the first tranche of 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 units 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 first tranche 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 first tranche of the offering and the company wished to complete the first tranche of the offering in an expeditious manner.

The company did not pay any cash finders' fees pertaining to the first tranche of the offering.

The company will use the proceeds of the first tranche of the offering toward advancing its Alzheimer's disease (AD) program, including the opening of its first U.S. AD clinic, for general and administrative expenses, and for working capital purposes.

The company expects additional tranches of the offering to close on or before Dec. 1, 2025.

The securities issued and issuable, described in this and the previous news release on Nov. 6, 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 Health Inc.

Algernon Health is a Canadian health care company focused on the provision of brain optimized PET scanning services through a planned network of new clinics in North America for the early-stage detection of Alzheimer's disease, as well as other forms of dementia, epilepsy, neuro-oncology and movement disorders. Algernon is also the parent company of a recently created private subsidiary called Algernon USA LLC, which will oversee all U.S. neuroimaging operations.

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