Mr. Francois Roberge reports

LSL PHARMA GROUP ANNOUNCES CLOSING OF SECOND AND FINAL TRANCHE OF PRIVATE PLACEMENT AND CLOSING OF UNITS FOR DEBT

LSL Pharma Group Inc. closed on July 12, 2024, the second and last tranche of a non-brokered private placement consisting of 2.4 million units at a price of 40 cents per unit for total gross proceeds of $960,000. Each unit consists of one Class A share of the corporation and one common share purchase warrant. Each warrant entitles the holder, subject to adjustments in certain cases, to purchase one common share at a price of 70 cents for a period of 24 months following the closing date.

The corporation was thus able to raise with both tranches a total of $2,450,800 in financing. The cash proceeds of the financing will be used to further expand production capacity at each of the LSL Laboratories, Steri-Med Pharma and Virage Sante plants and for general working capital purposes.

In connection with this second and final tranche of the financing, the corporation paid to finders (dealing at arm's length with the corporation) finders' fees for a total of $14,600 in cash and issued 36,500 finder warrants. Each finder warrant entitles the holder to purchase one common share at a price of 70 cents for a period of 18 months following the closing date.

Further to its press release of June 5, 2024, the corporation also announces that it has completed the settlement of $560,082.88 of the corporation's debts through the issuance of 1,400,206 units. The debts converted into units relate to promissory notes and non-convertible secured debentures. The corporation had elected to settle such debts through the issuance of units to preserve cash and strengthen the Corporation's balance sheet.

"This latest tranche of our private financing, including the conversion of debt into equity, further confirms investors' continued interest in LSL Pharma. This new financing will enable us to maintain and accelerate our organic growth initiatives for our three manufacturing sites and to fund the growth of our ophthalmic product portfolio," said Francois Roberge, president and chief executive officer of the corporation. "Finally, since the beginning of our 2024 fiscal year, we have successfully completed a series of financial transactions aimed at strengthening our financial position and reducing our debt. We intend to continue pursuing similar opportunities over the coming quarters," added Mr. Roberge.

Each issued unit, common share, warrant, warrant share, finder warrant and common share issued upon the exercise of the finder warrant will be subject to a four-month hold period under the applicable securities laws. The financing and the units for debt are subject to the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange.

About LSL Pharma Group Inc.

LSL Pharma is an integrated Canadian pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceuticals as well as natural health products in solid and liquid dosage forms.

We seek Safe Harbor.