Mr. Thomas Smeenk reports

HEMOSTEMIX ANNOUNCES ENGAGEMENT OF OAK HILL ASSET MANAGEMENT INC.

Hemostemix Inc. has non-exclusively engaged Oak Hill Asset Management Inc. (OHAM), an exempt market dealer, to provide capital markets advice related to the company's capital markets strategy. Services include advice on the structure of equity or debt capital financing and the identification of potential future investors.

The company intends to raise approximately $6-million in low-dilution capital. Proceeds will be used to re-establish production of ACP-01 for sale as an exempt compassionate treatment and to complete its phase III CLTI clinical trial.

Pursuant to an engagement letter between the company and OHAM, the company has agreed to pay OHAM a cash fee of $12,000 plus $20,000 in common shares as a work fee. Additional fees would be paid on any financing raised by OHAM.

Proceeds from the offering will allow the company to lease ready-to-occupy cGMP (current good manufacturing practice) production capacity in Puerto Rico in 2024 and generate revenue by the end of 2025 through 30 to 40 exempt compassionate treatments per month, while scaling production and progressing its clinical trial. Sales of ACP for CLTI treatments will be through clinical trial sites (to patients who do not meet inclusion criteria), through limb salvage clinics and podiatrists. Tod ate, seven clinical trial sites have agreed to refer patients to Hemostemix for exempt compassionate treatments, and have agreed to process up to 226 of Hemostemix's referrals to them per month.

Puerto Rico's Act 60 legislation enables the company to obtain 50 per cent cash back on eligible expenses, including clinical trials. Additionally, ACT 60 provides the company with a 15-year 1-per-cent profit tax structure, and a 20-per-cent tax credit for offshore expenses.

The structure and price of the offering has yet to be determined and the company will issue a follow-up news release once details are available. The company is confident that it can be completed on a low-dilutive basis that appropriately values the significant, near-term revenue and cash flow streams.

"The 498 treatments of ACP, including the seven clinical studies published in peer-reviewed journals to date, demonstrate ACP is safe and effective in the treatment of peripheral arterial disease and three forms of heart disease," stated Thomas Smeenk, chief executive officer. "It is remarkable that the clinical trial sites will be able to refer and see up to 226 no-option referrals. Compared to no-option and amputation, an ACP injection under exemption to save the limb makes sense," Mr. Smeenk said.

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.