Mr. David Elsley reports

CARDIOL THERAPEUTICS ANNOUNCES WARRANT EXERCISE FOR OVER USD $7 MILLION IN PROCEEDS

Cardiol Therapeutics Inc. has received proceeds of over $7-million (U.S.) from the exercise of outstanding common share purchase warrants. The capital raised will extend Cardiol's cash runway into H1 2028, finance operations through top-line data readout from the pivotal phase III Maveric trial of CardiolRx in recurrent pericarditis, and provide the company with additional flexibility and working capital as it moves beyond that significant milestone.

"These warrant exercises reflect our shareholders' confidence in Cardiol's clinical progress, strategic direction, and long-term potential as we approach a potentially transformative milestone for the company," said David Elsley, president and chief executive officer of Cardiol Therapeutics. "We are grateful for their continued support, which further strengthens our financial position and strategic flexibility."

"Our pivotal phase III Maveric trial builds on positive phase II results demonstrating marked reductions in pain, inflammation and recurrence, and represents an important step toward delivering a differentiated treatment for patients living with recurrent pericarditis. The proceeds from the exercise of these warrants will support regulatory preparations for a potential new drug application, subject to favourable Maveric results and regulatory input, as well as the advancement of our broader pipeline of novel treatments for inflammatory heart disease, including heart failure."

Pursuant to the terms of the common share purchase warrants issued in private placement of units on Oct. 17, 2025, and Oct. 20, 2025, the company confirms that, as of market close on Sept. 15, 2026, it is entitled to exercise its acceleration right. Of the 5,712,500 warrants originally issued, 425,000 remained unexercised at that date, representing additional potential gross proceeds of $573,750 (U.S.).

This news release constitutes notice of acceleration to warrantholders of the exercise of the acceleration right. Accordingly, the warrants will expire at 4 p.m. Eastern Time on Oct. 16, 2026, being the 30th day following delivery of the acceleration notice. Any warrants remaining unexercised after the early expiry date will be automatically cancelled for no consideration.

About Cardiol Therapeutics Inc.

Cardiol Therapeutics is a late-stage life sciences company focused on advancing the development of anti-inflammatory and anti-fibrotic therapies for heart disease. The company's lead small-molecule drug candidate, CardiolRx, modulates inflammasome pathway activation, an intracellular innate immune system response known to play an important role in the development and progression of inflammation and fibrosis associated with pericarditis, myocarditis, and heart failure.

The Maveric program is evaluating CardiolRx for the treatment of recurrent pericarditis, an inflammatory disease of the pericardium associated with symptoms including debilitating chest pain, shortness of breath and fatigue, which can lead to physical limitations, reduced quality of life, emergency department visits and hospitalizations. The program comprises the completed phase II Maveric-Pilot study (NCT05494788) and the continuing pivotal phase III Maveric trial (NCT06708299). The U.S. Food and Drug Administration has granted orphan drug designation to CardiolRx for the treatment of pericarditis, including recurrent pericarditis.

The Archer program also studied CardiolRx, specifically in acute myocarditis -- an important cause of acute and fulminant heart failure in young adults and a leading cause of sudden cardiac death in individuals under 35 years of age. The program comprises the completed phase II Archer study (NCT05180240), which evaluated the safety, tolerability and efficacy of CardiolRx in this patient population.

The company is also developing CRD-38, a novel, subcutaneously administered drug formulation intended for the treatment of inflammatory heart disease, including heart failure -- a leading cause of death and hospitalization in the developed world, with associated health care costs in the United States exceeding $30-billion (U.S.) per year.

We seek Safe Harbor.