Mr. Thomas Smeenk reports

HEMOSTEMIX ANNOUNCES PRIVATE PLACEMENT

Hemostemix Inc. has arranged a new private placement of $325,125, consisting of the sale of approximately 2.7 million units priced at 12 cents. Each unit shall consist 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 news release that the expiry date of the warrants will be accelerated to the 30th day after the date on which the company issues such news release.

Proceeds from the private placements are to commence the buildout of production of ACP-01, to pay current filing, regulatory and finder fees in connection with the offering, and for general working capital purposes.

Certain directors of the company may participate in the private placement, which would constitute 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. 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 company also announces that additional funds were not received in time to be included in a second tranche closing of the private placement announced on June 28, 2023.

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 and 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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