KRT9

- Engaged CRO for first-in-human SAT-3247 Phase 1 clinical study - Initiated GLP toxicity studies and GMP manufacturing of SAT-3247 - Continues to be on track to initiate first-in-human clinical trials mid-2024 - Cash balance of $39.6 million as at December 31, 2023 TORONTO--(BUSINESS WIRE)-- Satellos Bioscience Inc. (TSX: MSCL, OTCQB: MSCLF) (“Satellos” or the “Company”), a regenerative medicine company aimed at developing therapeutics that change the way degenerative muscle diseases are treated, announced today its financial results and operational highlights for the year ended December 31, 2023. All references to currency in this press release are in Canadian dollars unless otherwise noted. “2023 has been a pivotal year in transitioning Satellos from a discovery-stage company to a preclinical company, positioning Satellos to further transition into a clinical-stage company during 2024 as we work to advance our lead drug candidate, SAT-3247, into first-in-human studies,” said Frank Gleeson, Co-founder and CEO, Satellos. “We’ve generated and publicly presented exciting preclinical data showing the broad potential of SAT-3247 to regenerate muscle tissue and disclosed its molecular drug target as AAK1. We look forward to initiating our clinical development program with a Phase 1 study of SAT-3247 mid-year.” PROGRAM AND BUSINESS UPDATE: Highlights for the year ended December 31, 2023, along with recent developments include: Advanced SAT-3247 During Q1, 2024, the Company engaged a contract research organization (“CRO”) to design and implement its planned Phase 1 clinical trial for SAT-3247, initiated requisite GLP toxicology studies in two species with SAT-3247, made kilogram quantities of SAT-3247 under GLP conditions at the contract manufacturing organization it selected as its manufacturing partner, and initiated GMP manufacturing for SAT-3247. The Company continues to be on track to initiate and conduct a Phase 1 clinical trial in 2024 with SAT-3247. Subsequent to the year end, on March 4, 2024, Satellos announced positive preclinical data presented at the Muscular Dystrophy Association Clinical and Scientific Conference. The preclinical data presented show the broad potential of SAT-3247 to improve skeletal muscle function as has been demonstrated in three mouse models of muscle degeneration: mdx model of Duchenne muscular dystrophy (DMD), FLExDUX4 model of facioscapulohumeral muscular dystrophy (FSHD), and a muscle injury model in wildtype mice. In all instances, treatment with SAT-3247 over a three-to-four-week period resulted in a statistically significant improvement in muscle force versus animals receiving placebo. On November 14, 2023, the Company disclosed for the first time that the molecular drug target for the Duchenne program is AAK1 (formerly K9), a protein kinase in the Notch pathway, which the Company discovered can be modulated to enable muscle regeneration. Satellos also announced that SAT-3247 would be nominated as its lead development candidate with SAT-3153 becoming the backup development candidate. The Company based this change on preclinical data it generated demonstrating that, compared to SAT-3153, SAT-3247 exhibits improved oral bioavailability, target specificity, and tissue distribution. In addition, SAT-3247 exhibits a similar capacity to SAT-3153 to effect muscle regeneration and functional benefit in the mdx mouse model of Duchenne. These properties of SAT-3247 are viewed by the Company as important enhancements for clinical development of a novel therapeutic drug. On August 1, 2023, Satellos announced that the U.S. Food and Drug Administration (FDA) had granted Orphan Drug Designation and Rare Pediatric Disease Designation to SAT-3153 for the potential treatment of DMD. Subsequent to year-end, Satellos submitted similar applications to the FDA for Orphan Drug and Rare Pediatric Disease Designations for SAT-3247. Progressed Capital Markets Strategy As reported, during May 2023, Satellos closed an equity offering led by healthcare specific institutional investors of common shares and pre-funded warrants for gross proceeds of $55 million. Investors purchased a total of 110,000,000 securities consisting of 70,297,220 common shares and 39,702,780 pre-funded warrants. Subsequent to the year end, on February 15, 2024, trading of the Company’s common shares graduated from the TSX Venture Exchange to the Toronto Stock Exchange. Throughout 2023 and to date in 2024, Satellos has increased investor exposure through invitations to attend and present at numerous bank sponsored conferences and through being named as Life Sciences Ontario ‘Company of the Year’ and recognized as a Top 50 TSX Venture Company. Expanded Leadership Team Following the $55 million financing in May 2023, Satellos expanded its leadership team to fulfill key positions including: Elizabeth Williams, CPA, CA, as Chief Financial Officer (CFO) of the Company. Ms. Williams has nearly 20 years of experience in biotech, working with publicly listed entities in both Canada and the United States. Michael Cross, PhD, MBA, as Chief Business Officer. Dr. Cross has more than 25 years of biotech and life science experience including financing and licensing transactions, operations, clinical development, and corporate strategy. Courtney Wells as Senior Vice President of Clinical Development Operations. Ms. Wells has more than 20 years of experience in clinical development including orphan and neuromuscular diseases. Among other achievements, Ms. Wells led the clinical trial programs resulting in regulatory approvals of the corticosteroid Emflaza® (deflazacort) for the treatment of DMD and the first-ever gene therapy for the treatment of spinal muscular atrophy, Zolgensma®. In addition to these appointments, Dr. Phil Lambert was appointed Chief Scientific Officer and Dr. Michael Rudnicki as Chief Discovery Officer. Financial Results Satellos had cash and cash equivalents and short-term investments of $39.6 million as of December 31, 2023, compared with $1.9 million at December 31, 2022. The increase in cash and cash equivalents and short-term investments is due to proceeds of the $55 million equity offering completed during 2023. Management estimates that based on current estimates cash on hand should provide runway through 2025 and advance SAT-3247 through pre-clinical work, IND submission, and subsequent Phase 1 studies. For the year ended December 31, 2023, Satellos reported a net loss of $15.9 million ($0.18 loss per share), compared to a net loss $11.3 million ($0.32 loss per share) for the year ended December 31, 2022. The increase in net loss for the year ended December 31, 2023, compared with the year ended December 31, 2022, was primarily a result of higher R&D and G&A expenses in the current year period. Research and development expenses increased to $8.8 million for the year ended December 31, 2023, compared to $3.7 million for the year ended December 31, 2022. The increase in R&D expenses was the result of higher salary and management fees related to new hires to advance our research programs, increased preclinical pre-IND-enabling expenses and chemistry, manufacturing, and controls expenses for work ongoing in the current year as SAT-3247 advanced from the discovery stage to the pre-clinical stage of development. These increases were offset by lower discovery expenditures as the Company selected its lead candidate in 2023 and has advanced into the pre-clinical stage of development. Non-cash stock-based compensation increased in the current year due to more grants in the current year period associated with new hires and increased headcount. General and administrative expenses increased to $6.6 million for the year ended December 31, 2023, as compared to $4.7 million for the year ended December 31, 2022. The increase in general and administrative expenses in the current year period is primarily the result of increased salary and management fees related to increased headcount, salary adjustments, and variable compensation in the year, higher professional fees associated with increased legal fees, consultant fees, and investor relations expenses. Non-cash stock-based compensation increased due to new grants issued in the current fiscal year offset by higher fair value of options granted in the prior periods. Satellos’ audited financial statements for the year ended December 31, 2023, and the related management’s discussion and analysis (MD&A) will be available on SEDAR+ at . About Satellos Bioscience Inc. Satellos is a publicly traded biotechnology company dedicated to developing life-improving medicines to treat degenerative muscle diseases. Satellos has incorporated breakthrough research in muscle stem cell polarity into a proprietary discovery platform, called MyoReGenXTM, to identify degenerative muscle diseases where deficits in this process affect muscle regeneration and are amenable to therapeutic intervention. With this platform, Satellos is building a pipeline of novel therapeutics to correct muscle stem cell polarity and promote the body’s innate muscle repair and regeneration process. The Company’s lead program is an oral, small molecule drug candidate in development as a potential disease-modifying treatment for Duchenne muscular dystrophy. Satellos is headquartered in Toronto, Ontario. For more information, visit . Notice on Forward-Looking Statements This press release includes forward-looking information or forward-looking statements within the meaning of applicable securities laws regarding Satellos and its business, which may include, but are not limited to, statements regarding the anticipated benefits to patients from a small molecule treatment for Duchenne; the advancement of our lead drug candidate into clinical trials; the potential of our approach in other degenerative muscle diseases or in muscle injury or trauma; the general benefits of modulating stem cell polarity by administering small molecule drugs; its/their prospective impact on Duchenne patients, patients with other degenerative muscle disease or muscle injury or trauma, and on muscle regeneration generally; the utility of regenerating muscle by modulating polarity; adoption of Satellos’ approach by the medical community; and Satellos’ technologies and drug development plans. All statements that are, or information which is, not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, occurrences or developments, are “forward-looking information or statements.” Often but not always, forward-looking information or statements can be identified by the use of words such as “shall”, “intends”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “anticipate”, “potential”, “prospective” , “assert” or any variations (including negative or plural variations) of such words and phrases, or state that certain actions, events or results “may”, “might”, “can”, “could”, “would” or “will” be taken, occur, lead to, result in, or, be achieved. Such statements are based on the current expectations and views of future events of the management of the Company. They are based on assumptions and subject to risks and uncertainties. Although management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including, without limitation, risks relating to the pharmaceutical and bioscience industry (including the risks associated with preclinical and clinical trials and regulatory approvals), and the research and development of therapeutics, the results of preclinical and clinical trials, general market conditions and equity markets, economic factors and management’s ability to manage and to operate the business of the Company generally, including inflation and the costs of operating a biopharma business, and those risks listed in the “Risk Factors” section of Satellos’ Annual Information Form dated March 26, 2024 (which is located on Satellos’ pro ). Although Satellos has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward- looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Satellos does not undertake any obligation to publicly update or revise any forward-looking statement, whether resulting from new information, future events, or otherwise.

- Company disclosed drug target for Duchenne program; remains on track to initiate clinical trials mid-2024 - Satellos appointed Michael Cross, PhD, MBA, as Chief Business Officer and other key leadership team members including Chief Financial Officer and Senior Vice President, Clinical Operations - Cash balance at September 30, 2023, of $44.3 million provides runway through 2025 TORONTO--(BUSINESS WIRE)-- Satellos Bioscience Inc. (TSXV: MSCL) (“Satellos” or the “Company”), a regenerative medicine company aimed at developing therapeutics that change the way degenerative muscle diseases are treated, announced today its financial results and operational highlights for the three months ending September 30, 2023. All references to currency in this press release are in Canadian dollars unless otherwise noted. “This quarter we’ve significantly expanded our leadership team bringing essential experience and expertise to support advancing our novel small molecule therapeutic approach for muscle regeneration into clinical trials next year for Duchenne muscular dystrophy,” said Frank Gleeson, Cofounder and CEO of Satellos. “We are pleased that the ongoing preclinical studies for our Duchenne program continue to support our drug target, mechanism of action, and proprietary drug candidates, as we progress our lead drug candidate in IND-enabling studies and GMP manufacturing and remain on track to initiate clinical trials mid-2024.” PROGRAM AND BUSINESS UPDATE: Highlights for the three months ended September 30, 2023, along with recent developments include: Disclosed drug target for Duchenne program and SAT-3247 nominated as lead drug candidate (DC) Subsequent to the quarter end, on November 14, 2023, the Company disclosed for the first time that the drug target for the Duchenne program is AAK1 (formerly K9), a protein kinase in the Notch pathway, which the Company discovered can be modulated to enable muscle regeneration. Satellos also announced that SAT-3247 would be nominated as the lead DC based on results generated by the Company during its preclinical studies. Preclinical data generated by Satellos demonstrated that SAT-3153 and SAT-3247 have a similar capacity to affect muscle regeneration and functional benefit in the mdx mouse model of Duchenne. SAT-3247 also exhibited improved oral bioavailability, target specificity and tissue distribution when compared directly to SAT-3153 in preclinical studies. Satellos is conducting IND-enabling studies and GMP manufacturing for SAT-3247. The Company remains on track to initiate clinical trials mid-2024 Expands key leadership team Satellos announces the appointment of Michael Cross, PhD, MBA, as Chief Business Officer of the Company. Dr. Cross has more than 25 years of biotech and life science experience with demonstrated success in financing and licensing transactions and leadership in operations, clinical product development, and corporate strategy. On September 5, 2023, Satellos announced the appointment of Elizabeth Williams, CPA, CA, as Chief Financial Officer (CFO) of the Company and that Warren Whitehead, CPA, CMA, who has served as CFO for Satellos for two years, will now become Head of Corporate Strategy. Ms. Williams has nearly 20 years of experience in biotech, working with publicly listed entities in both Canada and the United States. Satellos also announced the appointment of Ms. Courtney Wells as Senior Vice President of Clinical Development Operations to lead and implement the clinical trial plans. Ms. Wells has more than 20 years of experience in clinical development for large pharmaceutical companies and innovative biotech companies, including orphan diseases and Duchenne. Financial Results Satellos had cash and cash equivalents of $44.3 million as of September 30, 2023, compared with $1.9 million at December 31, 2022. The increase in cash and cash equivalents is due to proceeds of a $55 million equity offering completed in the quarter ended June 30, 2023. Management estimates that cash on hand should provide runway through 2025 and advance SAT-3247 through pre-clinical work, IND submission, and subsequent Phase 1 studies. For the three months ended September 30, 2023, Satellos reported a net loss of $3.6 million ($0.03 loss per share), compared to a net loss $1.9 million ($0.05 loss per share) for the three months ended September 30, 2022. The increase in net loss was primarily the result of increased R&D expenses associated with increased headcount and development activity as well as increased G&A expenses due to increased personnel, recruitment, travel, and professional fees. Research and development expenses increased by approximately $1.8 million to $2.7 million for the three months ended September 30, 2023, as compared to $0.9 million for the comparative period in 2022. The increase in R&D costs is the result of an increase in salaries, management fees and stock-based compensation related to new hires to advance our research programs as well as pre-clinical pre-IND-enabling expenses and chemistry and manufacturing controls expenses for which there were no comparable costs in the prior year. These increases were offset by lower discovery expenditures as our lead program has moved from discovery into pre-clinical development. General and administrative expenses increased by approximately $0.8 million to $1.8 million for the three months ended September 30, 2023, as compared to $0.9 million for the comparative period in 2022. The increase is primarily due to an increase in salaries, management fees and stock-based compensation related to new hires in the current year period as well as higher legal, investor relations, and travel expenses associated with increased activity. Satellos’ interim condensed consolidated financial statements for the three and nine months ended September 30, 2023, and the related management’s discussion and analysis (MD&A) are available on SEDAR+ at . About Muscle Progenitor Cells and Duchenne Muscular Dystrophy Duchenne patients suffer from an inability to regenerate, grow, and repair muscle. Muscle tissue is regenerated through asymmetric division of muscle stem cells into stem and progenitor cells. Duchenne patients have abundant muscle stem cells, but lack muscle progenitor cells, which leads to a defect in muscle tissue regeneration and results in progressive muscle loss. Satellos' scientific founder, Dr. Michael Rudnicki, discovered and has demonstrated how dystrophin is present in muscle stem cells and coordinates a biological process known as “stem cell polarity” to regulate asymmetric cell division. Furthermore, in the absence of dystrophin, the ability to generate progenitor cells is lost, which the Company believes is the underlying cause of Duchenne. For the Company’s Duchenne program, Satellos has designed small molecules to inhibit AAK1, a protein kinase member of the Notch pathway. The Company believes AAK1 inhibition, independent of dystrophin, has the capacity to regulate polarity to restore asymmetric muscle stem cell division, generate muscle progenitor cells, and enable muscle regeneration. About Satellos Bioscience Inc. Satellos is a publicly traded biotechnology company dedicated to developing life-improving medicines to treat degenerative muscle diseases. Satellos has incorporated breakthrough research in muscle stem cell polarity into a proprietary discovery platform, called MyoReGenXTM, to identify degenerative muscle diseases where deficits in this process affect muscle regeneration and are amenable to therapeutic intervention. With this platform, Satellos is building a pipeline of novel therapeutics to correct muscle stem cell polarity and promote the body’s innate muscle repair and regeneration process. The Company’s lead program is an oral, small molecule drug candidate in development as a potential disease-modifying treatment for Duchenne muscular dystrophy. Satellos is headquartered in Toronto, Ontario. For more information, visit . Notice on Forward-Looking Statements This press release includes forward-looking information or forward-looking statements within the meaning of applicable securities laws regarding Satellos and its business, which may include, but are not limited to, statements regarding the anticipated benefits to patients from a small molecule treatment for Duchenne; the general benefits of modulating stem cell polarity by administering small molecule drugs; its/their prospective impact on Duchenne patients and muscle regeneration generally; the utility of regenerating muscle by modulating polarity; adoption of Satellos’ approach by the medical community; and Satellos’ technologies and drug development plans. All statements that are, or information which is, not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, occurrences or developments, are “forward-looking information or statements.” Often but not always, forward-looking information or statements can be identified by the use of words such as “shall”, “intends”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “anticipate”, “potential”, “prospective” , “assert” or any variations (including negative or plural variations) of such words and phrases, or state that certain actions, events or results “may”, “might”, “can”, “could”, “would” or “will” be taken, occur, lead to, result in, or, be achieved. Such statements are based on the current expectations and views of future events of the management of the Company. They are based on assumptions and subject to risks and uncertainties. Although management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including, without limitation, risks relating to the pharmaceutical and bioscience industry (including the risks associated with preclinical and clinical trials and regulatory approvals), and the research and development of therapeutics, the results of preclinical and clinical trials, general market conditions and equity markets, economic factors and management’s ability to manage and to operate the business of the Company generally, including inflation and the costs of operating a biopharma business, and those risks listed in the “Risk Factors” section of Satellos’ prospectus dated May 9, 2023 and Satellos’ Annual Information Form dated April 27, 2023 (both of which are on Satellos’ pro ). Although Satellos has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward- looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Satellos does not undertake any obligation to publicly update or revise any forward-looking statement, whether resulting from new information, future events, or otherwise No regulatory authority has approved or disapproved the content of this press release. Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Toronto, Ontario--(News - March 30, 2023) - Satellos Bioscience Inc. (TSXV: MSCL) (OTCQB: MSCLF) ("Satellos" or the "Company"), a drug discovery company developing small molecule therapeutics to regenerate muscle as a new approach to treating disease conditions from muscular dystrophy to aging, announced today its financial results and operational highlights for the year ending December 31, 2022. All dollar amounts are expressed in Canadian currency unless otherwise noted. "Satellos made considerable progress throughout 2022 and into the early stages of 2023. We continued to generate data which supports our vision of modifying stem cell polarity to reset the body's innate regeneration capacity as a potentially disease modifying treatment option for patients with Duchenne muscular dystrophy," said Frank Gleeson, President and CEO of Satellos. "Building on the nomination of our lead candidate, SAT-3153, and results of our preclinical studies to date, we plan on advancing SAT-3153 through pre-clinical IND development during 2023 with the aim of preparing an IND filing and commencing clinical trials in early 2024." Program highlights for the year ended December 31, 2022, along with recent developments include: Duchenne muscular dystrophy ("Duchenne") Duchenne is an incurable genetic disease that affects an estimated 1 in 4,000 live male births per year, worldwide. There is no known cure for Duchenne and treatments to-date, which are largely palliative or partially effective, do not restore stem cell polarity and the innate regeneration capacity of the body. On March 15, 2022, Satellos announced it had discovered that muscle degeneration and loss of function in Duchenne is driven by perturbations in the way muscle stem cells divide, wherein a process known as cell "polarity" is defective. On the same day Satellos announced that it had invented three unique and proprietary chemical series or classes of small molecule compounds with the potential to modulate muscle stem cell polarity, from which it had designed and screened hundreds of novel drug candidates. On November 3, 2022, Satellos announced that the Company's scientists had created, prioritized and advanced novel small molecule drug candidates into further preclinical studies to evaluate their potential to modulate muscle stem cell polarity and affect regeneration. Results from these studies led to the selection of SAT-3153 which the Company announced on January 3, 2023, as its pre-IND lead development candidate. SAT-3153 has been designed by Satellos to inhibit a particular protein kinase drug target (code-named K9 for reasons of competitive confidentiality) which the company believes has the potential to rescue stem cell polarity within muscle stem cells. In preclinical studies the Company has shown that inhibiting this protein kinase drug target either by genetic means or with small molecule drugs, including SAT-3153, enables the modulation of polarity and muscle stem cell divisions, thereby enhancing the muscle regeneration process. On February 6, 2023, Satellos announced the results of multiple preclinical studies in which Mdx mice, a gold-standard experimental model for studying Duchenne, were treated with drug for a period of up to two (2) weeks. Drug treated muscles were larger in size than untreated control muscles and showed an increase in muscle force. On March 9, 2023, Satellos announced additional preclinical results showing SAT-3153 exhibited important pharmaceutical properties such as no binding of the hERG channel, a plasma protein binding level of < 90% and oral bioavailability. Disease Expansion Indication: Congenital Muscular Dystrophy Type 1A On October 11, 2022, Satellos reported new data generated under its Sponsored Research Agreement with the Université de Sherbrooke showing preliminary proof of concept in a second rare disease, Congenital muscular dystrophy type 1, for the potential utility of modulating the muscle stem cell division process in restoring regeneration. Satellos presented preclinical proof of concept data at the World Muscle Society Congress in Halifax, Canada on October 14th, 2022. Operational Updates On March 15, 2023, Satellos announced a proposed non-brokered private placement offering of 10% unsecured non-convertible debenture units (the "Offering") by which Satellos expects to raise gross proceeds of up to $2,250,000, for use for corporate and general working capital purposes. Subsequently on March 22, 2023, Satellos announced that the Company had increased the maximum size of the Offering to $2,385,000 and on March 29, 2023, that the Offering had closed. On October 6, 2022, Satellos announced that its common shares commenced trading on the OTCQB Venture Market ("OTCQB") in the United States under the symbol "MSCLF". Shares in Satellos continue to trade on the TSXV under the symbol MSCL. On September 28, 2022, Satellos announced the appointment of Dr. Phil Lambert, an experienced pharmaceutical drug development professional, to the role of Chief Technology Officer. In this role, Dr. Lambert assumed overall responsibility for planning, oversight and execution of the Company's R&D plans, including translational activities focused on nominating a lead drug candidate, and advancing into IND-enabling studies and clinical trials in humans. On July 11, 2022, Satellos announced that it had filed a preliminary short form prospectus with securities regulatory authorities in British Columbia, Alberta and Ontario in connection with a best effort offering of units of the Company comprised of common shares and common share purchase warrants. The prospectus was amended and restated on August 29th and a final prospectus was filed on September 7, 2022. On September 13, 2022, Satellos announced that a total of 8,750,000 Units were issued at a price of $0.40 per Unit, raising gross proceeds of $3,500,000. Net proceeds from the Offering were deployed to advance Satellos' lead program and identify a development candidate by the end of 2022. Financial Results Satellos had cash and cash equivalents of $1,923,536 as at December 31, 2022. Net loss for the year ended December 31, 2022, was $11,322,641, or $0.32 per share, compared to a loss of $15,507,096, or $0.64 per share, for the year ended December 31, 2021. The decrease in net loss for the year ended December 31, 2022, compared with the year ended December 31, 2021, was primarily a result of the Company closing the iCo Arrangement and recognizing the related Listing Expense of $9,725,129 during the year ended December 31, 2021. This was partially offset by the Impairment of Intangible asset expense recognized during the year ended December 31, 2022. Both are "one-off" events. Research and development ("R&D") expenses net of refundable tax credits of $2,603,021 were incurred during the year ended December 31, 2022, compared to $1,961,205 incurred in the year ended December 31, 2021. The increase in R&D expenses in 2022 is primarily attributable to increased R&D contractor spending following the closure of the iCo Arrangement in August 2021, and partly due to Satellos no longer being eligible for refundable R&D tax credits following the close of the iCo Arrangement. Satellos' audited annual consolidated financial statements for the year ended December 31, 2022, and the related management's discussion and analysis (MD&A) are available on SEDAR at . About Satellos Bioscience Inc. Satellos is a biotechnology company dedicated to developing life-changing medicines to treat degenerative muscle conditions. The Company's scientific founder, Dr. Michael Rudnicki, is a thought leader who discovered and has shown how muscle stem cells regulate muscle repair and growth throughout life. He has shown how defects in a process known as stem cell "polarity", which controls how muscle stem cells divide to create muscle progenitor cells, lead to a failure of muscle regeneration in Duchenne and potentially other muscle disorders. As a result of this ongoing inability to produce sufficient numbers of new muscle cells, the muscles of people living with Duchenne are unable to keep up with and repair the continuous and accumulating damage their muscles experience. Accordingly, Satellos asserts that this ongoing dysfunction in the normal process of stem cell polarity in response to muscle damage represents a previously unrecognized root cause of Duchenne. The goal of correcting polarity is to restore the body's innate ability to regenerate muscle in response to the ongoing damage experienced by people living with Duchenne. The Company's lead program is focused on developing an oral therapeutic drug (i.e., a pill) intended to correct muscle stem cell polarity and restore the body's innate muscle repair and regeneration process. We believe our unique therapeutic approach represents a potential disease modifying treatment for Duchenne and other dystrophies, offering new hope to patients. To expand our programs to other degenerative muscle conditions or disorders, Satellos has created a proprietary discovery platform, MyoReGenX™, which we utilize to identify disease situations where deficits in muscle stem cell polarity and regeneration occur and are amenable to therapeutic treatment. For more information about or to discuss potential collaborations with Satellos please contact Ryan Mitchell, Ph.D., Director - Business Development at rmitchell@satellos.com or visit Satellos.com. CONTACT: Communications at Satellos Bioscience Inc. Christina Cameron ccameron@satellos.com 647.660.1780 Notice on forward-looking statements: This press release includes forward-looking information or forward-looking statements within the meaning of applicable securities laws regarding Satellos and its business, which may include, but are not limited to, statements regarding the anticipated benefits to patients from a small molecule treatment for Duchenne; the general benefits of modulating stem cell polarity by administering small molecule drugs; its/their prospective impact on Duchenne patients and muscle regeneration generally; the utility of regenerating muscle by modulating polarity; adoption of Satellos' approach by the medical community; and Satellos' technologies and drug development plans. All statements that are, or information which is, not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, occurrences or developments, are "forward-looking information or statements." Often but not always, forward-looking information or statements can be identified by the use of words such as "shall", "intends", "anticipate", "believe", "plan", "expect", "intend", "estimate", "anticipate", "potential", "prospective" , "assert" or any variations (including negative or plural variations) of such words and phrases, or state that certain actions, events or results "may", "might", "can", "could", "would" or "will" be taken, occur, lead to, result in, or, be achieved. Such statements are based on the current expectations and views of future events of the management of the Company. They are based on assumptions and subject to risks and uncertainties. Although management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including risks relating to the pharmaceutical and bioscience industry, general market conditions and equity markets, economic factors and management's ability to manage and to operate the business of the Company generally. Although Satellos has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward- looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Satellos does not undertake any obligation to publicly update or revise any forward-looking statement, whether resulting from new information, future events, or otherwise. No regulatory authority has approved or disapproved the content of this press release. Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. To view the source version of this press release, please visit