An anonymous director reports

CARDIOL THERAPEUTICS ANNOUNCES CLOSING OF BOUGHT DEAL FINANCING AND FULL EXERCISE OF OVER-ALLOTMENT OPTION FOR GROSS PROCEEDS OF $14.85 MILLION

Cardiol Therapeutics Inc. has closed its previously announced private placement of units of the company, including the full exercise of the overallotment option. Canaccord Genuity Corp. acted as sole underwriter and sole bookrunner for the offering. Pursuant to the offering, the company issued an aggregate of 11,423,078 units at a price of $1.30 per unit for aggregate gross proceeds of $14.85 million, which includes the full exercise by the underwriter of the overallotment option.

Each unit consists of one Class A common share of the company and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one common share at an exercise price of $1.75 per warrant share at any time for a period of 24 months from the date of issuance of the warrants. In connection with the offering, the company paid the underwriter a cash commission equal to 6 per cent of the aggregate gross proceeds of the offering.

The company intends to use the net proceeds of the financing to advance its research and clinical development programs and for general and administrative expenses, working capital, and other expenses.

The offering was completed by way of a private placement pursuant to National Instrument 45-106 -- Prospectus Exemptions under Part 5A, as amended by CSA Coordinated Blanket Order 45-935 -- Exemptions from Certain Conditions of the Listed Issuer Financing Exemption to qualified investors in each of the provinces and territories of Canada (other than Quebec). The underwriter was entitled to offer the units for sale in certain jurisdictions outside of Canada and the United States, provided it is understood that no prospectus filing or comparable obligation, continuing reporting requirement, or requisite regulatory or governmental approval arises in such other jurisdictions. The units issued under the listed issuer financing exemption are not subject to resale restrictions in Canada pursuant to applicable Canadian securities laws.

About Cardiol Therapeutics Inc.

Cardiol Therapeutics is a late-stage life sciences company focused on advancing the development of anti-inflammatory and anti-fibrotic therapies for heart disease. The company's lead small-molecule drug candidate, CardiolRx, modulates inflammasome pathway activation, an intracellular process known to play an important role in the development and progression of inflammation and fibrosis associated with pericarditis, myocarditis and heart failure.

The Maveric program is evaluating CardiolRx for the treatment of recurrent pericarditis, an inflammatory disease of the pericardium associated with symptoms including debilitating chest pain, shortness of breath and fatigue, which can lead to physical limitations, reduced quality of life, emergency department visits and hospitalizations. The program comprises the completed phase II Maveric pilot study (NCT05494788) and the continuing pivotal phase III MAVERIC trial (NCT06708299). The U.S. FDA (Food and Drug Administration) has granted orphan drug designation to CardiolRx for the treatment of pericarditis, including recurrent pericarditis.

The Archer program is also studying CardiolRx, specifically in acute myocarditis-an important cause of acute and fulminant heart failure in young adults and a leading cause of sudden cardiac death in individuals under 35 years of age. The program comprises the completed phase II Archer study (NCT05180240), which evaluated the safety, tolerability and efficacy of CardiolRx in this patient population.

The company is also developing CRD-38, a novel, subcutaneously administered drug formulation intended for the treatment of inflammatory heart disease, including heart failure -- a leading cause of death and hospitalization in the developed world, with associated health care costs in the United States exceeding $30-billion (U.S.) per year.

We seek Safe Harbor.