Mr. Don Cilla reports

APPILI THERAPEUTICS ANNOUNCES CLOSING OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Appili Therapeutics Inc. has closed the first tranche of its previously announced non-brokered private placement for aggregate gross proceeds of $177,500.

The private placement consisted of the issuance and sale of 7.1 million units of the company at a price of 2.5 cents per unit. Each unit issued pursuant to the private placement consists of one Class A common share of the company and one-half of one common share purchase warrant of the company. Subject to receipt of shareholder approval, each warrant will entitle the holder to acquire one common share at a price of five cents per common share for 36 months from the closing date of the private placement.

Pursuant to the requirements of the Toronto Stock Exchange, the warrants will not be exercisable until such time as the company obtains requisite shareholder approval (which for certainty will exclude the votes of holders of warrants), such approval to be sought no later than the next annual general meeting of the company's shareholders. If the warrants do not receive shareholder approval, the warrants will not be exercisable.

The company intends to use the net proceeds from the private placement primarily for working capital purposes and to finance the development of certain product candidates of the company.

In connection with the first tranche closing, the company has also paid certain finders an aggregate of $14,200 and issued an aggregate of 568,000 broker warrants to purchase common shares.

Subject to receipt of shareholder approval, each broker warrant will entitle the holder to acquire one common share at a price of not less than 2.834 cents per common share for 24 months from the closing date. Pursuant to the requirements of the TSX, the broker warrants will not be exercisable until such time as the company obtains requisite shareholder approval (which for certainty will exclude the votes of holders of broker warrants), such approval to be sought no later than the next annual general meeting of the company's shareholders. If the broker warrants do not receive shareholder approval, the broker warrants will not be exercisable.

The company plans to close a secondary tranche of the private placement in December, 2025.

All securities issued pursuant to the private placement will be subject to a statutory hold period of four months and one day from the date of issuance.

About Appili Therapeutics Inc.

Appili Therapeutics is a biopharmaceutical company that is purposefully built, portfolio driven, and people focused to fulfill its mission of solving life-threatening infections. By systematically identifying urgent infections with unmet needs, Appili's goal is to strategically develop a pipeline of novel therapies to prevent deaths and improve lives. The company is currently advancing a diverse range of anti-infectives, including a Food and Drug Administration-approved ready-made suspension of metronidazole for the treatment of antimicrobial resistant infections, a vaccine candidate to prevent tularemia, a serious biological weapon threat and a topical antiparasitic for the treatment of cutaneous leishmaniasis, a disfiguring disease. Led by a proven management team, Appili is at the centre of the global fight against infection.

We seek Safe Harbor.