Mr. Ryan Mitchell reports

SATELLOS BIOSCIENCE INC. ANNOUNCES FILING OF FINAL SHORT FORM PROSPECTUS FOR PROPOSED OFFERING OF COMMON SHARES

Satellos Bioscience Inc. has filed its final short form prospectus with the securities regulatory authorities in the provinces of British Columbia, Alberta and Ontario in connection with the company's previously announced public offering of common shares of the company (or prefinanced common share purchase warrants of the company in lieu of common shares).

The offering is being conducted on a commercially reasonable best effort agency basis at a price of 50 cents per common share (or 49.999 cents per prefinanced warrant), for minimum gross proceeds of $25-million and maximum gross proceeds of $55-million. Each prefinanced warrant issued in lieu of a common share at the election of any purchaser entitles the holder thereof to acquire one common share at a nominal exercise price of 0.001 cent, and the prefinanced warrants will not expire.

The offering will be conducted pursuant to the terms and conditions of an agency agreement that has been entered into between the company and Bloom Burton Securities Inc.

The completion of the offering may occur in one or more separate closings on one or more dates as the company and the agent may agree. It is expected that the initial closing will occur on or about May 15, 2023, or such other date as may be mutually agreed to by the company and the agent. There can be no assurance as to whether or when the offering may be completed, or as to the actual size of the offering. The TSX Venture Exchange has conditionally approved the listing of the common shares, the warrant shares and common shares underlying the compensation options (as defined below). Listing will be subject to the company fulfilling all of the TSX-V's listing requirements.

The company intends to use the net proceeds from the offering to advance its lead program for the discovery and development of a small molecule drug for the treatment of Duchenne muscular dystrophy and to advance its drug candidate by conducting the prescribed series of preclinical studies and CMC activities to support an investigational new drug or clinical trial application for submission to the U.S. Food and Drug Administration and Health Canada, as well as for working capital needs and other general corporate purposes.

The company will pay to the agent a cash fee equal to 7.0 per cent of the gross proceeds raised under the offering, and grant the agent compensation options equal to 7.0 per cent of the aggregate number of securities issued under the offering, provided, however, that the company will not be required to pay commission in connection with sales to certain president's list purchasers. Each compensation option shall entitle the agent to buy one common share at the same price per common share as under the offering. The compensation options shall be exercisable until that date which is 24 months following the initial closing date.

A copy of the prospectus, which contains important information relating to the offering, is available on the company's SEDAR profile.

In addition, the securities are anticipated to be offered by way of a private placement in certain jurisdictions outside of Canada pursuant to and in compliance with applicable securities laws.

About Satellos Bioscience Inc.

Satellos is a biotechnology company dedicated to developing life-changing medicines to treat degenerative muscle conditions. The company's scientific founder, Dr. Michael Rudnicki, is a thought leader who discovered and has shown how muscle stem cells regulate muscle repair and growth throughout life. He has shown how defects in a process known as stem cell polarity, which controls how muscle stem cells divide to create muscle progenitor cells, lead to a failure of muscle regeneration in Duchenne and potentially other muscle disorders. As a result of this continuing inability to produce sufficient numbers of new muscle cells, the muscles of people living with Duchenne are unable to keep up with and repair the continuous and accumulating damage their muscles experience. Accordingly, Satellos asserts that this continuing dysfunction in the normal process of stem cell polarity in response to muscle damage represents a previously unrecognized root cause of Duchenne. The goal of correcting polarity is to restore the body's innate ability to regenerate muscle in response to the continuing damage experienced by people living with Duchenne. The company's lead program is focused on developing an oral therapeutic drug (that is, a pill) intended to correct muscle stem cell polarity and restore the body's innate muscle repair and regeneration process. It believes its unique therapeutic approach represents a potential disease-modifying treatment for Duchenne and other dystrophies, offering new hope to patients. To expand its programs to other degenerative muscle conditions or disorders, Satellos has created a proprietary discovery platform, MyoReGenX, which it utilizes to identify disease situations where deficits in muscle stem cell polarity and regeneration occur and are amenable to therapeutic treatment.

We seek Safe Harbor.