Mr. Kym Anthony reports

AVIVAGEN PROVIDES CORPORATE UPDATES

Avivagen Inc. has provided several corporate updates, relating to the allowances of patents, a waiver of an interest payment on its senior secured debentures and the continuation of the strategic review process.

Intellectual property (patents)

The Corporation has been provided notices of allowance for patents in Brazil, Canada and Malaysia, further strengthening Avivagen's ownership and use of its OxC-beta Livestock product until 2035 on an exclusive basis. The patents relate specifically to the Corporation owning oxidized carotenoids and components thereof for preventing necrotic enteritis.

Necrotic enteritis is a poultry disease caused by an overgrowth of Clostridium perfringens bacteria in the small intestine. The toxins produced by C. perfringens also damage the intestinal wall. In general, it occurs in broiler chickens of 2-6 weeks of age. In subclinical forms, it is characterized by impaired digestion affecting growth and overall performance. Clinical forms lead to severe problems and increased flock mortality in a very short time. Necrotic enteritis is a widespread problem in all poultry, particularly broilers, and is the cause of US$6 billion annual losses in global poultry production and the disease is on the rise (1).

One reason for the rise of necrotic enteritis is the voluntary or legally required reduction of antibiotics in animal production.

Avivagen's innovation that generated the patents that have now been allowed highlight the use of oxidized carotenoids and in particular fully oxidized beta-carotene ("OxBC") for preventing and/or reducing the risk of developing necrotic enteritis and ameliorating associated conditions, such as deleterious gastrointestinal conditions. The patent also relates to associated methods, uses, and kits.

Senior Secured Debentures (The "Debentures")

Today the Corporation had a regularly scheduled interest payment on its issued and outstanding senior secured debentures. Pursuant to the terms of the Debentures, more than 50% of the holders of the Debentures provided a waiver in writing on this specific interest payment until the earlier of the next regularly scheduled interest payment in January 2024 or a change of control in the Corporation, in the event one occurs.

(1) See EW Nutrition website.

Strategic Alternatives

Since this announcement, the Special Committee has worked diligently to evaluate a variety of options. The Company is continuing to engage with multiple parties to pursue a potential transaction but is currently unable to provide any further guidance on the nature or timing of the proposed transaction. There can be no assurances that a transaction will be completed or that any successful transaction will result from the strategic process.

About OxC-beta Technology and OxC-beta Livestock

Avivagen's OxC-beta technology is derived from Avivagen discoveries about beta-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC- beta Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Mexico, Philippines, Taiwan, New Zealand, Thailand, Australia and Malaysia.

Avivagen's OxC-beta Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.

We seek Safe Harbor.