Ms. Katherine Murphy reports

PSYENCE GROUP ANNOUNCES CLOSING OF PRIVATE PLACEMENT & CONCLUSION OF LOAN AGREEMENT

Psyence Group Inc. has issued 1,056,441 common shares at a price of 12 cents per common share for gross proceeds of $126,773. In connection with this issuance, the company also issued 17,691 common shares a price of 12 cents per common share as payment of a finder's fee. This brings the total amount that the company has raised pursuant to the previously announced non-brokered private placement to $4.4-million.

Net proceeds from the private placement will be used to advance the company's recently announced phase IIb clinical trial in Australia using a natural psilocybin drug candidate in a palliative care setting, for drug development and for general working capital. The securities in the private placement will be subject to a hold period under applicable securities laws of four months and one day.

As part of Psyence's previously announced phase IIb clinical trial in palliative care in Australia, the company has successfully registered its research and development activities with the Australian federal government. Psyence could benefit from the Australian federal government's research and development tax incentive program, which could provide up to a 43.5-per-cent rebate on Psyence's research and development expenses in Australia. With this successful registration and an independent third party opinion and review of the R&D activities, Psyence has entered into a loan agreement through its Australian subsidiary, Psyence Australia Pty. Ltd. (the borrower), to borrow up to $1.1-million (Australian) by way of a secured loan from RH Capital Finance Co. LLC. The loan will be secured by way of a general security agreement and parent company guarantee against the assets of the borrower and the company. The loan will bear interest at 16 per cent per annum and be repayable the earlier of: (a) 21 business days after the notice of assessment (in respect of R&D refunds) is issued by the Australian Taxation Office to the borrower for the financial year ended June 30, 2023; (b) an event of default; and (c) Nov. 30, 2023. The company and the borrower intend to use the proceeds of the loan to finance the borrower's continuing phase IIb clinical trial, for drug development and for general working capital.

About Psyence Group Inc.

Psyence is a life science biotechnology company listed on the Canadian Securities Exchange and quoted on the OTCQB, with a focus on natural psychedelics. Psyence works with natural psilocybin products for the healing of psychological trauma and its mental health consequences in the context of palliative care. The company's name, Psyence, combines the words psychedelic and science to affirm the company's commitment to producing psychedelic medicines developed through evidence-based research.

Informed by nature and guided by science, the company built and operates one of the world's first federally licensed commercial psilocybin mushroom cultivation and production facilities in southern Africa. The company's team brings international experience in both business and science and includes experts in mycology, neurology, palliative care and drug development. The company works to develop advanced natural psilocybin products for clinical research and development.

The company's key divisions, Psyence Production, Psyence Therapeutics and Psyence Function, anchor an international collaboration, with operations in Canada, the United Kingdom, southern Africa and Australia and a presence in the United States.

We seek Safe Harbor.