An anonymous director reports

CARDIOL THERAPEUTICS ANNOUNCES BOUGHT DEAL FINANCING FOR GROSS PROCEEDS OF $13.5 MILLION

Cardiol Therapeutics Inc. has entered into an agreement with a sole underwriter and sole bookrunner, pursuant to which the underwriter has agreed to purchase, for resale, 10,384,616 units of the company at a price of $1.30 per unit on a bought deal basis in a private placement offering for gross proceeds of $13.5-million. The company has also granted the underwriter the option to purchase up to an additional 10 per cent of the number of units sold in the offering, being up to 1,038,462 units, at the offering price to raise additional gross proceeds of up to $1.35-million, exercisable in whole or in part at any time up to 48 hours prior to the closing of the offering to cover overallotments, if any.

Each unit will consist of one Class A common share of the company and one-half of one common share purchase warrant. Each warrant shall entitle 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.

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 intended use of the net proceeds of the offering is further detailed in the offering document (as defined below).

The offering is scheduled to close on or about Jan. 23, 2026, or such other date as the company and the underwriter may agree upon, and is subject to the receipt of all necessary approvals (including the approval of the TSX) and the negotiation of an underwriting agreement between the company and the underwriter. Notwithstanding the foregoing, the closing of any units issued pursuant to the listed issuer financing exemption (as defined below) must occur no later than the 45th day following the date hereof. Upon closing of the offering, the company shall pay to the underwriter a cash commission equal to 6 per cent of the aggregate gross proceeds of the offering.

The offering will take place 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, or such other exemptions under NI 45-106, to qualified investors in each of the provinces and territories of Canada (other than Quebec). The underwriter will also be entitled to offer the units for sale in the United States pursuant to available exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and in certain other 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 will not be subject to resale restrictions in Canada pursuant to applicable Canadian securities laws.

There is an offering document with respect to the portion of the offering being conducted pursuant to the listed issuer financing exemption that can be accessed under the company's SEDAR+ profile or on the company's website. Prospective investors of units issued under the listed issuer financing exemption should read the offering document before making an investment decision.

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. 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.