Mr. Frank Gleeson reports

SATELLOS REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS AND HIGHLIGHTS COMPANY PROGRESS

Satellos Bioscience Inc. has released financial results and corporate highlights for the first quarter ended March 31, 2026.

"The first quarter of 2026 was a productive time for Satellos. We raised $57-million, providing runway to meet all planned milestones through the end of 2027, uplisted to Nasdaq, and advanced the phase 2 Trailhead and Basecamp studies," said Frank Gleeson, MBA, chief executive officer of Satellos. "We are excited by the progress we are making with Basecamp enrolment and dosing across 11 active clinical sites to date. We expect the additional sites intended to complete Basecamp to be activated in Q2. We remain on track to complete Basecamp enrolment in Q3 2026, supported by the active and planned sites currently having identified more than 100 per cent of potential participants for screening and potential enrolment in the coming months."

SAT-3247 clinical progress

SAT-3247 is an orally administered small-molecule therapy designed to enhance muscle regeneration by addressing deficits in muscle stem cell polarity in Duchenne and potentially other muscle diseases.

Basecamp (CL-201): phase 2 pediatric study

The Basecamp study is evaluating SAT-3247 in 51 ambulatory boys with DMD (Duchenne muscular dystrophy) aged seven, eight or nine years old. Primary end points include safety, tolerability and dynamometry. Secondary end points will assess SAT-3247's impact on muscle quality, function and regeneration.

The Basecamp trial is actively enrolling at 11 clinical centres. The company anticipates activating additional clinical sites throughout Q2 2026.

Trailhead (LT-001): phase 2 adult study

Trailhead is a 12-month, open-label phase 2 study evaluating long-term safety, efficacy and sustained functional benefit of SAT-3247 in adults with DMD:

• After submitting Trailhead to the FDA (U.S. Food and Drug Administration) in early Q2 2026 and following the statutory review period, Satellos began to engage with its planned clinical sites in the United States to identify participants with DMD aged 16 to 25 years old.
• Four participants from the company's phase 1b study (CL-101) enrolled in Trailhead and restarted on SAT-3247 at various times in Q4 2025; they are expected to complete six months on drug at various times during Q2 2026.
• Satellos plans to enroll up to 30 individuals living with DMD aged greater than or equal to 16 to 25 years old in the United States and Australia.
• The company intends to provide updates from the Trailhead study throughout 2026.

Financial results

Satellos had cash and cash equivalents and short-term investments of $69.9-million as of March 31, 2026, compared with $27.7-million on Dec. 31, 2025. The increase primarily reflects proceeds from an equity offering completed in February, 2026, partially offset by cash used to finance continuing operations.

For the quarter ended March 31, 2026, Satellos reported a net loss of $9.8-million (53-cent loss per share), compared with a net loss of $6.1-million (44-cent loss per share) for the quarter ended March 31, 2025. The increase in net loss was primarily a result of increased research and development (R&D) expenses related to clinical activities associated with SAT-3247. General and administrative (G&A) expenses also increased as compared with the prior period due to additional personnel and professional fees to support advancing operations and the Nasdaq Stock Market listing.

R&D expenses increased to $7.3-million for the quarter ended March 31, 2026, compared with $4.5-million for the quarter ended March 31, 2025. The increase in R&D expenses was primarily the result of costs associated with the Trailhead and Basecamp studies.

G&A expenses increased to $2.7-million for the quarter ended March 31, 2026, as compared with $1.9-million for the quarter ended March 31, 2025. The increase in G&A expenses was primarily the result of increased head count, professional fees associated with public company reporting obligations and costs associated with the Nasdaq listing.

Satellos's financial statements for the quarter ended March 31, 2026, and the related management discussion and analysis (MD&A) will be available on the company's website and on SEDAR+.

About SAT-3247

SAT-3247 is a proprietary, oral, small-molecule drug candidate being developed by Satellos as a novel approach to regenerating skeletal muscle lost in Duchenne muscular dystrophy (DMD) and other degenerative muscle diseases or injury conditions. Satellos is advancing SAT-3247 as a potential treatment for DMD that is independent of dystrophin and applicable regardless of exon mutation status, with continuing phase 2 clinical studies, including Trailhead, an open-label study in adult participants, and Basecamp, a global, randomized, placebo-controlled study in pediatric participants.

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 therapy designed to address deficits in muscle repair and regeneration. SAT-3247 is being evaluated as a potential disease-modifying treatment, initially for DMD, in two phase 2 clinical trials: Basecamp in pediatrics and Trailhead in adults. SAT-3247 targets AAK1, a key protein that Satellos has identified as capable of helping restore the body's natural muscle repair and regeneration biology, a fundamental stem-cell-driven process that is disrupted in DMD and other degenerative conditions. By inhibiting AAK-1, SAT-3247 treatment aims to re-establish a biochemical signal needed to support muscle regeneration in a dystrophin-independent manner -- with potential broad applicability as either a stand-alone or adjunctive therapy. Satellos has identified additional muscle diseases and injury conditions where restoring muscle repair and regeneration may have therapeutic benefit and plans to pursue these opportunities in future clinical development.

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