Dr. Frederick Sancilio reports

LOBE SCIENCES LTD. ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT AND PROVIDES CORPORATE UPDATE

Lobe Sciences Ltd. has closed its previously announced non-brokered private placement offering of 14,615,384 common shares in the capital of the company at a price of 6.5 cents per common share, for aggregate gross proceeds of approximately $950,000.

The company intends to use the proceeds of the private placement for working capital and general corporate purposes, and to advance its S-100 drug candidate for the treatment of sickle cell disease. A portion of the proceeds will be directed to its subsidiary, Applied Lipid Technologies Inc., to support development of the S-100 program toward human clinical trials. The company has procured the active pharmaceutical ingredient required for these studies, enabling the program to move forward.

All securities issued in connection with 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 under applicable securities laws of jurisdictions outside Canada.

About Lobe Sciences Ltd.

Lobe Sciences is a biopharmaceutical company advancing programs in diseases with unmet medical needs. The company is pursuing strategic development through its subsidiaries, including a majority interest in Cynaptec Pharmaceuticals Inc. and wholly owned subsidiary Applied Lipid Technologies Inc. (formerly Altemia Inc.).

About Cynaptec Pharmaceuticals Inc.

Cynaptec is a biopharmaceutical company dedicated to developing innovative therapies for neurological and psychiatric disorders. Cynaptec's initial development program is focused on the use of its proprietary L-130 (psilocin mucate) compound for treatment of the significant unmet medical needs of patients with Chronic Cluster Headache, with an additional preliminary proof-of-concept to assess potential utility for substance use disorders. Cynaptec is 64 per cent owned by Lobe.

About L-130 (psilocin mucate)

L-130 is a novel, patented, oral, stable analog of psilocin, the active metabolite of the pro-drug psilocybin, designed to enhance bioavailability and therapeutic efficacy, which has been identified as having therapeutic potential in a variety of neurological conditions. Whereas conventional psilocin is an unstable compound that has been challenging for the industry to develop as a stand-alone pharmaceutical, L-130's stability and bioavailability profile, and associated safety and efficacy signals, suggest the potential for prescription drug development in a variety of neurological and psychiatric indications.

We seek Safe Harbor.