Mr. Chris Seto reports

SPECTRAL MEDICAL INC. ANNOUNCES FILING OF BASE SHELF PROSPECTUS

Spectral Medical Inc. has filed a preliminary short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec.

The base shelf prospectus, when made final, will allow Spectral to qualify the distribution by way of a prospectus of up to $100-million of common shares, debt securities, subscription receipts, warrants and units, or any combination thereof, from time to time, during the 25-month period that the final short form base shelf prospectus is effective. The specific terms of any offering under the base shelf prospectus will be established in a prospectus supplement, which will be filed with the applicable securities regulators in connection with any such offering.

"Given the upcoming milestones and catalysts which may be impactful to the company, combined with our ongoing commitment to have maximum flexibility and optimize our balance sheet, we have filed a base shelf prospectus," said Chris Seto, chief executive officer of Spectral Medical. "Our stakeholders should not assume that this filing is a sign that we would be imminently raising capital."

A copy of the preliminary short form base shelf prospectus can be found under the company's profile on SEDAR+.

About Spectral Medical Inc.

Spectral is a phase 3 company seeking U.S. Food and Drug Administration approval for its unique product for the treatment of patients with septic shock, Toraymyxin (PMX). PMX is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream and is guided by the company's FDA cleared endotoxin activity assay, the clinically available test for endotoxin in blood.

PMX is approved for therapeutic use in Japan and Europe, and has been used safely and effectively over 360,000 times to date. In March, 2009, Spectral obtained the exclusive development and commercial rights in the United States for PMX, and, in November, 2010, signed an exclusive distribution agreement for this product in Canada. In July, 2022, the U.S. FDA granted breakthrough device designation for PMX for the treatment of endotoxic septic shock. Approximately 330,000 patients are diagnosed with septic shock in North America each year.

The Tigris trial is a confirmatory study of PMX in addition to standard care versus standard care alone and is designed as a 2 to 1 randomized trial of 150 patients using Bayesian statistics. Endotoxic septic shock is a malignant form of sepsis.

The trial methods are detailed in "Bayesian methods: a potential path forward for sepsis trials."

Spectral is listed on the Toronto Stock Exchange under the symbol EDT.

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