Mr. Ian McDonald reports

BRIGHT MINDS ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT FULLY SUBSCRIBED BY MANAGEMENT

Further to the news release dated Dec. 6, 2023, Bright Minds Biosciences Inc. has closed a fully management-subscribed non-brokered private placement. The private placement consisted of 661,765 units of the company at a price of $1.36 per unit for aggregate gross proceeds of $900,000. The proceeds from the offering are intended to further the progress of Bright Minds' phase 2 clinical trial for BMB-101 in a pediatric epilepsy indication.

Each unit consists of one common share in the capital of Bright Minds and one share purchase warrant. Each warrant grants the holder the right to acquire one share at a price of $1.70 per warrant share for a period of 60 months from the date of issuance.

The offering was conducted under the listed issuer financing exemption as per Part 5A of National Instrument 45-106 (Prospectus Exemptions). As a result, the securities issued are not subject to a hold period under the prevailing Canadian securities laws.

Ian McDonald, the chief executive officer and a director of Bright Minds, subscribed for 100 per cent of the units in this offering. Mr. McDonald's participation was intended to assist the company with financing the phase 2 clinical trial for BMB-101 without incurring expenses related to a broad offering of securities, as the company's other resources are currently devoted to continuing research projects and general working capital needs.

"With the closing of this placement, we're closer to transforming pediatric epilepsy care with BMB-101, a testament to our commitment to deliver an innovative epilepsy treatment for children who have limited options," stated Mr. McDonald.

Mr. McDonald's participation in the offering constitutes a related-party transaction as defined in Multilateral Instrument 61-101 (Protection of Minority Securityholders in Special Transactions). The company is relying on the exemption from valuation requirement and minority approval pursuant to Subsection 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for Mr. McDonald's participation in the offering, as the value of the units subscribed for does not represent more than 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.

About Bright Minds Biosciences Inc.

Bright Minds is focused on developing novel transformative treatments for neuropsychiatric disorders, epilepsy and pain. Bright Minds has a portfolio of next-generation serotonin agonists designed to target neurocircuit abnormalities that are responsible for difficult to treat disorders such as treatment-resistant epilepsy, treatment-resistant depression, PTSD and pain. The company leverages its world-class scientific and drug development expertise to bring forward the next generation of safe and efficacious drugs. Bright Minds' drugs have been designed to potentially retain the powerful therapeutic aspects of psychedelic and other serotonergic compounds, while minimizing the side effects, thereby creating superior drugs to first-generation compounds, such as fenfluramine, psilocybin, LSD and ibogaine.

We seek Safe Harbor.