Dr. Fred Sancilio reports

LOBE SCIENCES IMPROVES BALANCE SHEET

Lobe Sciences Ltd. has arranged a proposed settlement of $137,130 (U.S.) ($191,884.32) in related party liabilities through the issuance of 3,837,686 common shares at a price of five cents per share. This transaction reflects a pro-active approach to strengthening Lobe's balance sheet and preserving cash for strategic growth initiatives. The accounts payable being settled represent amounts owed to Clearway Global LLC (the creditor).

The settlement shares will be subject to a statutory hold period of four months from the date of issuance under applicable Canadian securities laws and the policies of the Canadian Securities Exchange, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. Closing of the debt settlement remains subject to approval by the Canadian Securities Exchange.

The creditor is a related party to the company and the debt settlement constitutes a related party transaction, as such terms are defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101), by virtue of the creditor: (i) holding greater than 20 per cent of the issued and outstanding common shares of the company; and (ii) being beneficially owned and controlled by a director and officer of the company. The directors of the company have determined that the debt settlement will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in reliance on the exemptions set forth in sections 5.5(a) and 5.7(1)(a) of MI 61-101.

"By converting liabilities into equity, Lobe strengthens its balance sheet and aligns stakeholders with our long-term growth strategy," said Dr. Fred D. Sancilio, chief executive officer and chairman of Lobe Sciences. He continued, "This structure enhances operational flexibility, reflects our commitment to disciplined capital management and may improve stock liquidity, particularly given the concentration of shares held by insiders and strategic partners."

Management remains focused on delivering long-term growth and will continue to evaluate financing strategies that balance shareholder interests with operational needs.

About Lobe Sciences Ltd.

Lobe Sciences is a publicly traded pharmaceutical innovation platform focused on developing treatments for neurological, hematological and rare diseases. The company operates through a repeatable model that combines shared services, equity-driven teams and outsourced infrastructure to accelerate development across multiple therapeutic programs. Lobe generates intellectual property and packages it into focused subsidiaries, at present, the company operates through two subsidiaries:

• Cynaptec Pharmaceuticals Inc. (a private Delaware company currently owned 64 per cent by Lobe Sciences) is advancing conjugated psilocin (CP), a patented new chemical entity targeting chronic cluster headache, for which it plans to seek an orphan indication. Substance use disorder (SUD) and possibly additional CNS disorders, and other indications are under strategic review.
• Altemia Inc. is addressing sickle cell disease with two complementary assets: a medical food currently in early stage distribution, and S-100, a patent-pending therapeutic candidate designed to treat the underlying pathology of the disease.

We seek Safe Harbor.