Dr. Madi Madiyalakan reports

QUEST PHARMATECH CLARIFIES AGREEMENT IN PRINCIPLE WITH OQP BIO INC.

Quest Pharmatech Inc., at the request of the TSX Venture Exchange, is providing additional information to clarify certain information contained in the company's news release dated June 2, 2023, announcing the entry into of a non-binding agreement in principle with OQP Bio Inc. of Korea for the potential monetization of bonds held by Quest in OQP Bio.

As previously disclosed, the agreement in principle is non-binding and subject to the execution of a definitive agreement among the parties, and a definitive agreement has not been signed to date. The terms and conditions contained in the agreement in principle are indicative and subject to change, and there can be no assurance that a definitive agreement will be signed on the indicative terms or at all. In addition, even if a definitive agreement is signed, the company will be subject to performance risk of all counterparties, and liquidity risk and price volatility for any marketable securities received. The agreement in principle contemplates that buyers for one-half of the company's OQP Bio bonds payable in cash will be arranged by OQP Bio. The company is not aware at this time of any third party purchasers that have been arranged or committed to purchase the company's OQP Bio bonds, and there is a risk that OQP Bio will not be successful in arranging for such purchasers. The agreement in principle also contemplates a merger between Canaria Bio Co. Ltd. (CAB) and Canaria Bio M Co. Ltd. (CABM), and the receipt by the company of shares of CAB in exchange for shares of CABM. The CABM shares would be received by the company upon the conversion of convertible debentures of CABM received from OQP Bio in exchange for the other one-half of the company's OQP Bio bonds. The proposed merger will be subject to a number of conditions, including regulatory and other approvals, and there can be no assurance that the proposed merger will be completed as proposed or at all. Further, there can be no assurance that any of the proposed monetization transactions contemplated by the agreement in principle will be completed as proposed or at all.

The company is continuing to work on the signing of a binding definitive agreement. If the company enters into a binding definitive agreement in respect of the transactions contemplated by the agreement in principle, a further press release will be issued at that time by the company providing full details.

About Quest Pharmatech Inc.

Quest Pharmatech is a publicly traded, Canadian-based biopharmaceutical company developing products to improve the quality of life. The company has a 42.5-per-cent ownership interest in OncoQuest Inc., which sold its immunotherapy technology assets to Korea-based Dual Industrial Co. Ltd. in April, 2020. Quest also has a 23-per-cent ownership interest in OncoVent, a Chinese joint venture developing antibody-based immunotherapeutic products for cancer for the Greater China territory. Quest is also developing proprietary MAb AR 9.6 targeting truncated MUC16 as theranostic agents for cancer. AR 9.6 was licensed from University of Nebraska and currently is in late preclinical stage.

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