Mr. Allen Davidoff reports

XORTX ANNOUNCES INCREASE TO PRIVATE PLACEMENT

Further to its press release of Jan. 7, XORTX Therapeutics Inc. has received significant interest in the non-brokered private placement. To respond to the interest received, the company has agreed to increase the private placement and to adjust the terms to the warrants comprising a portion of the units being offered.

Under the revised terms of the private placement, the company plans to raise between $2-million and $5-million through the issuance of between eight million and 20 million common share units of the company at a price of 25 cents per unit. Each unit will comprise one common share and one common share purchase warrant. Each warrant will entitle the holder, on exercise, to purchase one additional common share in the capital of the company, at a price of 40 cents per warrant until the close of business on the day which is 60 months from the closing date, provided, however, that, if, at any time following the expiry of the statutory four-month hold period, the closing price of the common shares on the Canadian Securities Exchange is greater than $1.20 for 10 or more consecutive trading days, the warrants will be accelerated upon notice and the warrants will expire on the 30th calendar day following the date of such notice. In addition, the warrants will also be subject to typical anti-dilution provisions and a ratchet provision that provides for an adjustment in the exercise price should the company issue or sell common shares or securities convertible into common shares at a price (or conversion price, as applicable) less than the exercise price such that the exercise price shall be amended to match such lower price.

The company may pay finder's fees on a portion of the private placement in accordance with applicable securities laws and the policies of the Canadian Securities Exchange. All securities issued under the private placement will be subject to a four-month-and-one-day hold period under applicable Canadian securities legislation.

The private placement is subject to approval of the CSE.

The proceeds from the sale of the units will be utilized by the company for preclinical trials, IND (investigative new drug) filing for XRx-008 for polycystic kidney disease (a phase 3 ready program), R&D (research and development), and for general corporate purposes.

About XORTX Therapeutics Inc.

XORTX Therapeutics is a biopharmaceutical company with three clinically advanced products in development -- XRx-008 for autosomal dominant polycystic kidney disease (ADPKD), XRx-101 for coronavirus/COVID-19 infection and XRx-221 is a clinical stage program for Type 2 diabetic nephropathy (T2DN). The company has strong intellectual property rights and established proof of concept through independent clinical studies. XORTX is working to advance its clinical development stage products that target xanthine oxidase to inhibit production of uric acid. At Xortx Therapeutics, the company is dedicated to developing medications to improve the quality of life and future of patients with kidney disease.

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