Mr. Thomas Smeenk reports

HEMOSTEMIX'S PRIVATE PLACEMENT USE OF PROCEEDS

Hemostemix Inc.'s gross proceeds from the non-brokered private placement are to commence the buildout of production of ACP-01 via a contract in the form of a production facility co-tenancy agreement negotiated by the issuer, pay current filing, regulatory and finder fees in connection with the offering, and for general working capital purposes.

As stated in the previous news release, the company is selling up to 10 million units priced at 12 cents each. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant, with each full warrant entitling the holder to acquire one common share at a price of 25 cents per common share for a period of 24 months from the closing of the offering, closing in tranches, subject to the accelerated expiry provision described below.

If during any 10 consecutive trading days occurring after four months and one day has elapsed following the closing date of the offering, the weighted average closing sales price of the common shares (or the closing bid, if no sales were reported on a trading day) as quoted on the TSX Venture Exchange is greater than or equal to 30 cents per common share, the company may provide notice in writing to the holders of the warrants by issuance of a press release that the expiry date of the warrants will be accelerated to the 30th day after the date on which the company issues such press release.

"This financing enables the company to complete a contract it has negotiated in the form a production facility co-tenancy agreement," stated Thomas Smeenk, chief executive officer. "This arrangement enables Hemostemix to maintain control of its formulation of ACP-01, and produce it at approximately one-12th the cost per treatment batch quoted by contract manufacturers," Mr. Smeenk said.

The existing shareholder exemption and investment dealer exemption

The offering is made available to existing shareholders of the company who, as of the close of business on May 31, 2023, hold common shares of the company (and who continue to hold such common shares as of the closing date), pursuant to the prospectus exemption set out in Alberta Securities Commission Rule 45-513 -- Prospectus Exemption for Distribution to Existing Security Holders and in similar instruments in other jurisdictions in Canada. The existing shareholder exemption limits a shareholder to a maximum investment of $15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the company receives subscriptions from investors relying on the existing shareholder exemption exceeding the maximum amount of the financing, the company intends to adjust the subscriptions received on a pro rata basis.

The company has also made the offering available to certain subscribers pursuant to the investment dealer exemption. In accordance with the requirements of the investment dealer exemption, the company confirms that there is no material fact or material change about the company that has not been generally disclosed.

The offering is subject to all necessary regulatory approvals including acceptance from the exchange. All securities issued in connection with the offering will be subject to a four-month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply.

About Hemostemix Inc.

Hemostemix is an autologous stem cell therapy company, founded in 2003. A winner of the World Economic Forum Technology Pioneer Award, the company has developed, patented and is scaling a patient's blood-based stem cell therapeutics platform that includes angiogenic cell precursors, neuronal cell precursor and cardiomyocyte cell precursors.

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