Mr. Trevor Burns reports

CARDIOL THERAPEUTICS ANNOUNCES EXERCISE AND CLOSING OF OVER-ALLOTMENT OPTION

Further to Cardiol Therapeutics Inc.'s successfully completed public offering of an aggregate of 8,437,500 Class A common shares of the company at a price to the public of $1.60 (U.S.) per common share for gross proceeds of $13.5-million (U.S.), Canaccord Genuity has purchased an additional 1,265,625 common shares at the offering price pursuant to its exercise in full of the overallotment option for additional gross proceeds to the company of $2,025,000 (U.S.) before deducting the underwriting commissions.

After giving effect to the full exercise of the overallotment option, Cardiol sold 9,703,125 common shares under the offering, for aggregate gross proceeds of $15,525,000 (U.S.).

The company intends to use the net proceeds from the offering to support the clinical development of CardiolRx for the treatment of ecurrent pericarditis and for general and administrative expenses, working capital, and other expenses.

Canaccord Genuity acted as the sole bookrunner in connection with the offering.

The offering was made pursuant to a U.S. registration statement on Form F-10, declared effective by the U.S. Securities and Exchange Commission on July 16, 2024, and the company's existing Canadian short form base shelf prospectus dated July 12, 2024. A preliminary prospectus supplement relating to the offering was filed with the securities commissions in all of the provinces and territories of Canada, except Quebec, and with the SEC in the United States, and a final prospectus supplement relating to the offering was filed with the securities commissions in all of the provinces and territories of Canada, except Quebec, and with the SEC in the United States. The supplement and accompanying base prospectus contain important detailed information about the offering.

The supplement and accompanying base prospectus can be found on SEDAR+ and on EDGAR. Copies of the supplement and accompanying base prospectus may also be obtained from Canaccord Genuity LLC, 1 Post Office Square, Suite 3000, Boston, Mass., 02109, attention: syndicate department; or by e-mail at prospectus@cgf.com.

About Cardiol Therapeutics Inc.

Cardiol Therapeutics is a clinical-stage life sciences company focused on the research and clinical development of anti-inflammatory and anti-fibrotic therapies for the treatment of heart disease.

We seek Safe Harbor.