Mr. Thomas Smeenk reports

HEMOSTEMIX CLOSES $403,539 OF THE UNIT PRIVATE PLACEMENT

Hemostemix Inc. has closed the sale of 3,362,833 units at a subscription price of 12 cents per unit for gross proceeds of $403,539.96. In connection with the closing, the corporation will pay finder fees to one or more advisers, dealers or finders for their assistance in the private placement including: (a) a finder's fee payable in cash not to exceed 8 per cent of the aggregate gross proceeds, equal to $19,803.19; and (b) issuing 165,027 finder options exercisable for a period of 24 months from the closing date of the private placement, to acquire common shares at a price of 12 cents per common share.

As stated in the previous news release, the company is selling up to 10 million units priced at 12 cents each, closing in tranches. 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, 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.

Proceeds from the fully completed non-brokered private placement are to commence the buildout of production of ACP-01 through 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.

The participation of certain directors in the private placement 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-V. The company is relying upon the exemptions from the formal valuation and minority shareholder approval requirements pursuant to sections 5.5(b) and 5.7(1)(a), respectively, of MI 61-101 on the basis that the company is not listed on a specified stock exchange and, at the time the offering was agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction insofar as it involves an interested party (within the meaning of MI 61-101) in the offering, exceeds 25 per cent of the company's market capitalization calculated in accordance with MI 61-101.

The private placement is subject to all necessary regulatory approvals including acceptance from the exchange. All securities issued under the private placement 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.

We seek Safe Harbor.