Mr. Frank Gleeson reports

SATELLOS ANNOUNCES SHARE CONSOLIDATION IN CONNECTION WITH PROPOSED NASDAQ LISTING

Satellos Bioscience Inc. has completed a consolidation of its outstanding common shares on the basis of one postconsolidation common share for every 12 preconsolidation common shares. The company believes that the consolidation should permit it to qualify for a potential listing on Nasdaq Stock Market.

The consolidation ratio approved by the board of directors is within the previously disclosed range of ratios for a share consolidation authorized by the shareholders of the company at the annual and special meeting of shareholders held on June 18, 2025. The consolidation will take effect at market open on the Toronto Stock Exchange on or about Jan. 30, 2026. The number of common shares currently outstanding is 185,507,153. The number of common shares expected to be outstanding following the consolidation will be approximately 15,458,929.

The consolidation is intended to increase the quoted market per share price of the company's common shares to meet Nasdaq's requirement that the common shares trade at $3 (U.S.) or higher as of the listing date. The company has applied to list the common shares on Nasdaq under the symbol MSLE. Final approval of the listing of the company's common shares on Nasdaq remains subject to the satisfaction of all applicable listing requirements and the approval of Nasdaq.

"Effecting the share consolidation marks an important step forward to meeting the listing requirements for trading on the Nasdaq market," said Frank Gleeson, co-founder and chief executive officer of Satellos. "We believe a Nasdaq listing will position us well to improve market visibility, enhance liquidity and broaden investor access."

Each shareholder's percentage ownership interest in the company and proportional voting power will remain substantially unchanged following the consolidation, subject to minor adjustments resulting from the treatment of fractional shares. Outstanding stock options and prefinanced warrants will be adjusted in accordance with their respective terms to reflect the consolidation, including proportionate adjustments to the number of securities issuable upon exercise thereunder and the applicable exercise prices.

No fractional common shares will be issued as a result of the consolidation. All fractions of shares will be rounded down to the nearest whole number. No cash consideration will be paid in respect of fractional shares.

The company's new Cusip number will be 80401L803, and the new ISIN will be CA80401L8033. The company's name and trading symbol on the Toronto Stock Exchange will remain unchanged.

A letter of transmittal was mailed to registered shareholders providing instructions to surrender the certificates evidencing their common shares to Satellos's transfer agent, Computershare Investor Services Inc., for replacement certificates representing the number of common shares to which they are entitled as a result of the consolidation. A copy of the letter of transmittal is available on the SEDAR+ profile of Satellos.

Non-registered shareholders who hold common shares through a bank, broker or other nominee should note that these intermediaries may have their own procedures for processing the consolidation, which may differ from those described above for registered shareholders. Non-registered shareholders who have questions should contact their bank, broker or other nominee for more information.

About Satellos Bioscience Inc.

Satellos is a clinical-stage drug development company focused on restoring natural muscle repair and regeneration in degenerative muscle diseases. Through its research, Satellos has developed SAT-3247, a first-of-its-kind, orally administered small-molecule drug designed to address deficits in muscle repair and regeneration. SAT-3247 targets AAK1, a key protein that Satellos has identified as capable of replacing the signal normally provided by dystrophin in muscle stem cells to effect repair and regeneration. By restoring this missing dystrophin signal in DMD, SAT-3247 enables muscle stem cells to divide properly and more efficiently, promoting natural muscle repair and regeneration. SAT-3247 is currently in clinical development as a potential disease-modifying treatment initially for DMD. Satellos also is leveraging its proprietary discovery platform MyoReGenX to identify additional muscle diseases or injury conditions where restoring muscle repair and regeneration may have therapeutic benefit and represent future clinical development opportunities.

We seek Safe Harbor.