Mr. Evan Levine reports

PSYBIO ANNOUNCES APPOINTMENT OF IAN WISENBERG TO BOARD OF DIRECTORS

Psybio Therapeutics Corp. has added life sciences veteran Ian Wisenberg to the company's board of directors and as an independent member of the company's audit committee.

Mr. Wisenberg's career spans over three decades in biotechnology international business with an emphasis in finance, capital formation, corporate and business development. Mr. Wisenberg has been an integral leader charting innovation and growth across several Bridgewest Group biotech companies. As chief executive officer and board director of BioCina Pty. Ltd., an Australian-based biologics contract development and manufacturing organization (CDMO), he leads a highly accomplished team, recognized for its strong history as a multiproduct biologics development and manufacturing.

Prior to taking the helm at BioCina, Mr. Wisenberg was founder and chief business officer of BioArdis, a preclinical biopharmaceutical development company, chief financial officer at BioDuro, a CDMO which was acquired by Advent International in 2019, and, previous to these roles, ran a very successful global life sciences consulting practice, BioGlobal Consulting Group, which had an extensive client list of biotech and pharma companies in the United States and abroad. Mr. Wisenberg is from Cape Town, South Africa, and attended the University of Cape Town.

In connection with the appointment of Mr. Wisenberg to the board, he was issued the option to purchase 500,000 subordinate voting shares at an exercise price of five cents, being the closing price of the shares on Jan. 9, 2023, which are exercisable until Jan. 9, 2028, subject to certain vesting conditions, pursuant to the company's stock option plan which was approved by shareholders on Aug. 11, 2022.

The company also announces that the board has approved the repricing and expiry date extension of 8,945,800 options previously granted pursuant to the plan to certain employees, directors and consultants of the company to mirror the pricing and expiry date of the grant to Mr. Wisenberg. All of the amended options are subject to approval of the TSX Venture Exchange and the amended options issued to insiders are subject to disinterested shareholder approval at the company's next shareholder meeting expected to be held in Q4 2023. Additional information regarding the amended options will be available in the management information circular prepared in connection with the special meeting. Prior to the amended options receiving TSX-V approval and disinterested shareholder approval, as applicable, the amended options are not eligible for exercise.

To retain valued team members in the context of a significant drop in the trading price of the company's shares on the TSX-V over the last 24 months due to macro issues in the broader capital markets, certain of the outstanding options no longer offer an adequate incentive to certain employees, directors and consultants of the company, as currently priced at 35 cents. Recognizing that option grants are a critical element of the company's compensation policy, the board is of the view that it is in the best interest of the company to reprice the outstanding options granted to certain employees, directors and consultants, to ensure the exercise price of the options is more in line with the current market price of the shares.

The company wishes to clarify that further to its press releases dated Jan. 5, 2023, that the company announces its intention to apply to the TSX-V to extend its previously announced non-brokered private placement offering of units of the company consisting of up to 40 million units at a price of five cents per unit for aggregate gross proceeds of up to $2-million. Each unit comprises one share and one subordinate voting share purchase warrant exercisable at 10 cents per share for a period of 24 months following the closing date of the offering. The expiry date of the warrants may be accelerated by the company at any time and upon 30 days of notice, if the closing price of the shares on the TSX-V is greater than 20 cents for any 10 non-consecutive trading days following the date that is four months and one day after the date of issuance and prior to the expiry date of the warrants. The offering was initially announced in the company's Dec. 1, 2022, press release and the closing of the first tranche of the offering was announced on Jan. 5, 2023. The first tranche of the offering was closed on Jan. 5, 2023. Pursuant to the first tranche, 12,665,612 units were issued to purchasers at a price of five cents per unit for aggregate gross proceeds of $633,281. Following the completion of the first tranche, 27,334,388 units remain available under the offering for aggregate gross proceeds of up to $1,366,719. The company intends to use the proceeds of the offering for cGMP (current good manufacturing practice) manufacturing, clinical trials, and general corporate and working capital purposes.

About Psybio Therapeutics Corp.

Psybio Therapeutics is an intellectual-property-driven biotechnology company developing novel psycho-targeted therapeutics to being designed to improve mental health and neurological conditions. The team has extensive experience in drug discovery based on synthetic biology and metabolic engineering, as well as clinical and regulatory expertise progressing drugs through human studies and regulatory protocols. Research and development is currently continuing for naturally occurring psychoactive tryptamines originally discovered in different varieties of hallucinogenic mushrooms, other tryptamines and phenethylamines, and combinations thereof. The company utilizes a bio-medicinal chemistry approach to therapeutic development, in which psychoactive compounds can be utilized as a template upon which to develop precursors and analogs, both naturally and non-naturally occurring.

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