Mr. Francois Roberge reports

LSL PHARMA GROUP SECURES $6.44 MILLION AS THE FIRST CLOSING OF CONCURRENT NON-BROKERED PRIVATE PLACEMENTS

LSL Pharma Group Inc. closed on March 18, 2024, non-brokered private placements for $6.44-million, representing the first closing of the $8-million combined financings announced on March 7, 2024.

Pursuant to the financing, the corporation has issued 16,086,893 units at a price of 40 cents per unit for aggregate gross proceeds of $6,434,758. Each unit consists of one Class A share of the corporation and one common share purchase warrant. Each warrant entitles the holder, subject to adjustments in certain cases, to purchase one common share at a price of 70 cents for a period of 36 months following the closing of the financing. Each issued unit, common share, warrant and warrant share will be subject to a four-month hold period under the applicable securities laws. There were no finders' fees paid in connection with this private placement.

The financing includes $2,685,426 in cash proceeds, out of maxi mum gross proceeds of $3.5-million, and the conversion of $3,749,332 of the corporation's debts in units, out of a maximum of units for debts of $4.5-million. The cash proceeds of the financing will be used to further expand production capacity at each of the LSL Laboratories and Steri-Med Pharma plants and for general working capital purposes.

"LSL Pharma has been experiencing significant growth since the beginning of 2024. This financing will strengthen our balance sheet and provide additional financial flexibility to capitalize on our increased production capacity and commercial expansion into the U.S.," said Francois Roberge, president and chief executive officer of the corporation. "The potential for developing first-to-market ophthalmic generic products for the Canadian and U.S. markets has never been greater as we accelerate our development and regulatory initiatives to leverage and maximize our U.S. partnership with Fera Pharmaceuticals," added Mr. Roberge.

Insiders of the corporation participating into the financing are acquiring a total of 875,000 units for a subscription price of $350,000. The participation of insiders in the financing constitutes a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The corporation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in respect of such insiders participation because neither the fair market value of the financing nor the fair market value of the consideration for the units paid by the insiders exceeds 25 per cent of the corporation's market capitalization.

About LSL Pharma Group Inc.

LSL Pharma Group is an integrated Canadian pharmaceutical company specializing in the development, manufacturing and distribution of natural health products and dietary supplements in solid dosage forms, as well as high-quality sterile ophthalmic pharmaceuticals.

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