Dr. Ryan Mitchell reports

SATELLOS BIOSCIENCE ENTERS INTO AN AGREEMENT WITH ICP SECURITIES INC. TO PROVIDE MARKET MAKING SERVICES

Satellos Bioscience Inc. has entered into an agreement with ICP Securities Inc., a dealer member in good standing with the Canadian Investment Regulatory Organization, to provide market making services for the securities of Satellos Bioscience in accordance with TSX Venture Exchange policies, subject to the receipt of approval by the TSX-V. The services agreement aims to assist in maintaining a reasonable market and improving the liquidity of Satellos securities. The company has agreed to pay a service fee of $7,500 per month for an initial term of four months. There are no performance factors contained in the agreement and ICP will not receive shares or options as compensation.

ICP, established in 2023, is based in Toronto and specializes in market making and liquidity provision, leveraging its own proprietary technology to deliver liquidity provision and execution services to a broad array of public issuer and institutional investors.

Satellos and ICP are unrelated and unaffiliated entities. ICP has informed Satellos that, except as set out herein, it does not currently own any securities of Satellos; however, ICP and its clients may acquire a direct interest in the securities of the company.

Satellos is also announcing that it has engaged Insight Capital Partners Inc., an affiliate and owner of ICP, to provide capital markets advisory services to the company. The company has granted Insight stock options to purchase up to 150,000 common shares of Satellos. Such stock options are exercisable at a price of 41 cents per share for a period of two years from the date of grant. The options vest monthly at the rate of 8,333 options per month for a period of 17 consecutive months and at the rate of 8,339 options for the 18th and final month from the grant date. Insight also holds vested options to purchase 126,000 common shares of Satellos pursuant to previous engagements between Insight and the company.

Satellos has also granted a director of Satellos, stock options to purchase up to 56,238 common shares of Satellos and has granted an officer, stock options to purchase up to 72,000 common shares of Satellos. Also in connection with Elizabeth Williams appointment as chief financial officer, Satellos has granted Ms. Williams stock options to purchase up to 1.1 million common shares of Satellos. Such stock options are exercisable at a price of 41 cents per share for a period of 10 years from the date of grant and vest over four years, with 25 per cent vesting on the anniversary of the date of grant and the remainder vesting in 36 equal monthly instalments.

About muscle stem cells and duchenne muscular dystrophy

Satellos scientific founder Dr. Michael Rudnicki discovered and has demonstrated how muscle stem cells employ a biological process known as "stem cell polarity" to regulate muscle repair and regeneration throughout life. Dr. Rudnicki has also shown how regulatory defects in stem cell polarity lead to a failure of muscle repair and regeneration in Duchenne muscular dystrophy (DMD), representing a previously unrecognized root cause of DMD. As a result of this continuing inability to produce sufficient numbers of new muscle cells, people with DMD are unable to repair the continuous and accumulating muscle tissue damage. Based on this research, Satellos is advancing a novel small molecule therapeutic designed to rescue the defect in stem cell polarity and provide a disease-modifying treatment for DMD and other muscular dystrophies.

About Satellos Bioscience Inc.

Satellos is a publicly traded biotechnology company dedicated to developing life-improving medicines to treat degenerative muscle diseases. Satellos has incorporated breakthrough research in muscle stem cell polarity into a proprietary discovery platform, called MyoReGenX, to identify degenerative muscle diseases where deficits in this process affect muscle regeneration and are amenable to therapeutic intervention. With this platform, Satellos is building a pipeline of novel therapeutics to correct muscle stem cell polarity and promote the body's innate muscle repair and regeneration process. The company's lead program is an oral, small-molecule drug candidate in development as a disease-modifying treatment for Duchenne muscular dystrophy. Satellos is headquartered in Toronto, Ont.

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