Mr. David Regan reports

SONA NANOTECH CLOSES PRIVATE PLACEMENT FINANCING TO RAISE $750,000 IN GROSS PROCEEDS AND ANNOUNCES ADDITIONAL FINANCING

Sona Nanotech Inc. has closed its private placement, previously announced on Oct. 18, 2023, with the issuance of 3.75 million shares at 20 cents per share and 1,875,000 common share purchase warrants, exercisable to purchase an additional common share of Sona at a price of 30 cents per share until Nov. 24, 2025. Insiders subscribed for 175,000 common shares and 87,500 common share purchase warrants. As previously disclosed, Sona intends to use the net proceeds of the financing for further research and development of its Targeted Hyperthermia Therapy (THT), as well as for general working capital purposes.

Numus Capital Corp. (the agent), a registered exempt market dealer, acted as exclusive agent for the financing. In connection with the private placement, Sona paid the agent cash commissions of $53,650 and 268,125 non-transferable share purchase warrants (the broker warrants). Each broker warrant entitles the holder to acquire one share at an exercise price of 30 cents until Nov. 24, 2025. The agent is a related party to Sona, a director of Sona being indirectly a principal shareholder of the agent, as well such director of Sona also being a director and officer of the agent.

All securities issued pursuant to the financing will be subject to a hold period until March 25, 2024.

Sona is also pleased to announce that it plans to raise an additional $60,000 through a non-brokered private placement (the additional financing) of up to 300,000 units of Sona at 20 cents per unit. Each unit will consist of one common share of Sona and one-half of a common share purchase warrant. Each whole warrant will be exercisable to purchase one additional common share of Sona at a price of 30 cents per share for a period of 24 months from the closing date of the additional financing, which is expected to occur on Dec. 1, 2023.

The agent will also act as the exclusive agent for the additional financing. As compensation for its services, the agent will receive cash compensation equal to 7.5 per cent of the gross proceeds of the additional financing. The agent will also receive non-transferable common share purchase warrants, which will entitle the agent to acquire such number of common shares as is equal to 7.5 per cent of the number of units placed by the agent. The broker warrants will be exercisable at a price of 30 cents per share any time for a period of 24 months from the closing date.

Sona also intends to use the net proceeds of the additional financing for general working capital purposes.

Completion of the additional financing is subject to the satisfaction of certain conditions, and all securities issued pursuant to the additional financing will be subject to a hold period of four months and a day commencing from the closing date.

About Sona Nanotech Inc.

Sona Nanotech, a nanotechnology life sciences company, is developing Targeted Hyperthermia, a photothermal cancer therapy, which uses therapeutic heat to treat solid cancer tumours. The heat is delivered to tumours by infrared light that is absorbed by Sona's gold nanorods in the tumuor and re-emitted as heat. Therapeutic heat (41 degrees to 48 degrees) stimulates the immune system, shrinks tumours, inactivates cancer stem cells and increases tumour perfusion, thus enabling drugs to reach all tumour compartments more effectively. The size, shape and surface chemistry of the nanorods target the leaky vasculature of solid tumours and the selective thermal sensitivity of tumour tissue enables the therapy to deliver clean margins. Targeted Hyperthermia promises to be safe, effective, minimally invasive and competitive in cost, and a valuable adjunct to drug therapy and other cancer treatments. Sona's initial clinical target is colorectal cancer.

Sona has developed multiple proprietary methods for the manufacture of gold nanoparticles which it uses for the development of both cancer therapies and diagnostic testing platforms. Sona Nanotech's gold nanorod particles are cetyltrimethylammonium (CTAB) free, eliminating the toxicity risks associated with the use of other gold nanorod technologies in medical applications. It is expected that Sona's gold nanotechnologies may be adapted for use in applications, as a safe and effective delivery system for multiple medical treatments, subject to the approval of various regulatory boards, including Health Canada and the U.S. Food and Drug Administration.

We seek Safe Harbor.