Mr. Francois Roberge reports

LSL PHARMA GROUP PROVIDES UPDATE ON STERI-MED PHARMA MANUFACTURING OPERATIONS AND GRANTS COMPENSATION STOCK OPTIONS

LSL Pharma Group Inc. has provided an update regarding the remediation plan initiated by Steri-Med Pharma Inc., as previously announced in the corporation's news release dated April 30, 2026.

Steri-Med manufacturing operations

• Operational status. Following Health Canada's biennial inspection, completed in late 2025, Steri-Med temporarily paused its sterile filling operations during the first quarter of 2026 to prepare and submit the remediation plan requested by Health Canada. After Health Canada accepted the remediation plan, production resumed in early April, 2026, and manufacturing activities have continued without interruption since then.
• Remediation plan progress. As at the end of June, 2026, execution of the remediation plan had reached a completion rate of 72 per cent. The corporation expects to complete the substantial majority of the planned initiatives by the beginning of the fourth quarter of 2026, in accordance with the agreed implementation schedule.
• Compliance and growth benefits. Management believes these initiatives will further strengthen Steri-Med's quality systems, regulatory compliance and manufacturing platform. These enhancements are also expected to reinforce the company's position as a trusted North American manufacturer of sterile ophthalmic products that meet the rigorous standards of both Health Canada and the U.S. Food and Drug Administration.

Grant of compensation stock options

LSL Pharma announced today that it has granted an aggregate of 1,175,000 stock options to certain executives and employees, as part of their compensation. The options have an exercise price of 31.5 cents per share and are exercisable for a period of 10 years from the date of grant. Options granted to executives and employees vest over three years. The options were granted in accordance with the corporation's stock option plan.

All of the options (and any common shares issuable upon exercise or settlement thereof) will be subject to a four-month hold period pursuant to the policies of the TSX Venture Exchange and applicable securities law.

About LSL Pharma Group Inc.

LSL Pharma Group is a Canadian integrated pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceutical products, as well as pharmaceutical, cosmetic and natural health products in solid, semi-solid and liquid dosage forms. Leveraging its technical expertise, certified facilities and experienced team, LSL Pharma delivers high-quality solutions that meet the highest industry standards. The wholly owned subsidiaries of LSL Pharma include Steri-Med Pharma Inc., LSL Laboratory Inc., Virage Sante Inc., Dermolab Pharma Ltd., Du-Var Laboratory Inc. and LSL MedPlus Inc. (formerly Juno OTC Inc.).

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