Mr. Thomas Heineman reports

ONCOLYTICS BIOTECH(TM) AND SOLTI PRESENT FURTHER POSITIVE PELAREOREP TRANSLATIONAL DATA AT SITC

Oncolytics Biotech Inc. has presented a poster that provides further positive translational data from the previously completed Aware-1 breast cancer window-of-opportunity study, sponsored by SOLTI-Innovative Cancer Research, at the Society for Immunotherapy of Cancer (SITC) 38th annual meeting.

"Using the novel IMC technology to conduct further translational data analysis from the Aware-1 study in early-stage breast cancer patients has confirmed and expanded our understanding of pelareorep's mechanism of action in the tumour microenvironment," said Dr. Matt Coffey, president and chief executive officer of Oncolytics. "We look forward to incorporating these important translational learnings into our registrational program for HR-plus/HER2-minus metastatic breast cancer. These findings likely also have implications for other indications where we have seen signals of efficacy with atezolizumab/pelareorep combinations, including pancreatic cancer in the Goblet study focused on gastrointestinal cancers."

Thomas Heineman, MD, PhD, chief medical officer at Oncolytics, commented: "Previously published analyses from Aware-1 patient samples showed that in the first three days after dosing, pelareorep upregulated tumour PD-L1 expression in the tumours, induced the generation and expansion of T-cell clones and promoted the tumour infiltration of CD8-plus T-cells. It also led to an increase in the CelTIL score in most patients, which is a measure of tumour cellularity and immune infiltration that is associated with favourable clinical outcomes. The new IMC data presented today show an increase in cytotoxic T-cells and PD-L1 expression in tumours by three days following treatment and demonstrate pela's ability to induce an enhanced immune state within tumours. This supports pelareorep's ability to modify the tumor microenvironment and enhance the responsiveness of cancers to checkpoint inhibitor therapy."

Summary of data and findings for expanded translational analysis of the Aware-1 study

Samples: From the Aware-1 window-of-opportunity study of patients with early-stage HR-plus/HER2-minus breast cancer:

• Collected from cohort 2 patients who received pelareorep plus letrozole and atezolizumab (n equals 10);
• Tumour biopsies were collected on day 1 (pretreatment), day 3 (prior to atezolizumab) and day 21 (when tumours were surgically removed).

Evaluation process:

• Samples were evaluated using a biomarker panel of 37 conjugated antibodies that bind to tumor antigens and immune cells;
• The novel IMC technology was used to visualize cellular interactions down to the single-cell level.

Results: Visualization of the data shows that pelareorep treatment changed the number of PD-L1 tumour cells and the architecture of the tumour microenvironment:

• By day 3, an increase in PD-L1 positivity and cytotoxic T-cells could be seen at a higher rate of tumour infiltration relative to baseline.

About Oncolytics Biotech Inc.

Oncolytics is a clinical-stage biotechnology company developing pelareorep, an intravenously delivered immunotherapeutic agent. Pelareorep has demonstrated promising results in phase 2 studies in breast and pancreatic cancers. It acts by inducing anti-cancer immune responses and promotes an inflamed tumour phenotype -- turning cold tumours hot -- through innate and adaptive immune responses to treat a variety of cancers.

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