Mr. Trent Northcutt reports

AURORA SPINE ANNOUNCES SETTLEMENT OF ARBITRATION, NEW PATENT LICENSE AGREEMENT FOR SI JOINT PRODUCT AND INCREASE IN FUNDING FROM INSIDER

Aurora Spine Corp. has entered into a new non-exclusive licence to U.S. patent No. 9,451,986, titled "Percutaneous sacroiliac joint implant and method for surgically inserting and securing the implant into the sacroiliac joint," in an agreement with SILIF Corp., of New York, N.Y. The new patent licence replaces a previous version that the company utilized in developing its market-leading SiLO TFX transfixing SI joint system.

The new licence is for a four-year term beginning Aug. 11, 2026, and resolves a long-standing disagreement between the parties over royalty payment calculations. The settlement of the dispute involves a cash payment of $283,000 from Aurora to SILIF, the return of 2.7 million shares to the company and extinguishment of the related note payable to Aurora from SILIF, and, more importantly, a simplified royalty calculation on future sales of SiLO TFX. The arbitration, initiated under the previous licence agreement, is being dismissed.

The company also announced that an insider of the company has agreed to increase the principal amount available under an existing loan with the company by $600,000 (U.S.). As a result of this increase, the total principal amount owing by the company to the insider is $2.2-million (U.S.). The company intends to use the loan proceeds for general corporate purposes.

The loan is evidenced by a promissory note bearing interest at 4.5 per cent per annum. The principal amount, together with interest thereon, is due on July 11, 2029. The company may prepay the principal amount and interest thereon, in whole or in part, at any time without penalty. The company's wholly owned subsidiary, Aurora Spine Inc., continues its guarantee and security for the obligations of the company under the note. Upon a change of control of the company, the maturity date will be accelerated, and the note will be due and payable in full, upon written request from the holder.

The loan constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and the policies of the TSX Venture Exchange but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101. The company was not in a position to file a material change report more than 21 days in advance of the completion of the loan.

The loan is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals.

About Aurora Spine Corp.

Aurora Spine is an innovative designer and manufacturer of minimally invasive spinal implants and interventional pain management technologies. Headquartered in Carlsbad, Calif., the company's mission is to improve spinal surgery outcomes through simplified, integrated and cost-effective solutions that advance patient care worldwide.

We seek Safe Harbor.