Concerned Shareholders Challenging Results of Voting and Disregard for Resounding Support for Much Needed Change to Hemostemix Board of Directors and Executive Management

CALGARY, ALBERTA--(Marketwired - Sept. 12, 2016) - The Concerned Shareholders of Hemostemix Inc. ("Hemostemix" or the "Company"), are shocked that shareholders holding the majority of votes submitted for the annual and special meeting of Hemostemix (the "Meeting") on September 8^th had their votes effectively ignored. The Concerned Shareholders are preparing to review and scrutinize the voting processes related to the Meeting and are preparing for recourse to the courts if necessary to protect the integrity of the voting process and to declare their slate of directors as elected.

In connection with the Meeting, Hemostemix shareholders, representing over 31,000,000 shares representing nearly 47% of the issued and outstanding shares were voted on the Concerned Shareholders' BLUE voting forms and submitted for voting at the Meeting. However, at the Meeting, management announced votes supporting their slate of 30,212,850 (44.96% of the issued and outstanding shares) and votes supporting the Concerned Shareholders slate of 29,711,584 (44.21% of the issued and outstanding shares). This left more than 1,500,000 shares of the Concerned Shareholders side not counted - more than enough to have reversed the results announced at the Meeting and effect change.

The shareholders of Hemostemix voted to install a new board to represent the best of interests of all shareholders. At this point current management is not accepting this. The only answer provided about the votes that were not counted by the chair of the Meeting, being the incumbent CEO, was that he had accepted the report of the Company's transfer agent on voting. When pressed to explain further, his answer was that the transfer agent, who is independent, disqualified the votes, not the Company and that proxies and the transfer agent's report on voting would be made available after the Meeting was complete.

The Concerned Shareholders had it noted for the record of the Meeting that they were not afforded an opportunity prior to the Meeting to inspect proxies and were not previously advised that any exclusion of votes would occur, even after at least three formal attempts to arrange for a reasonable pre-meeting inspection (which is common industry practice) with the express purpose of trying to avoid disruption or controversy at the Meeting. It was further noted that management had expressly rejected these good-faith efforts made by the Concerned Shareholders.

The Concerned Shareholders are seeking to overturn this ruling, as it appears to eviscerate the stated intentions of the majority of shareholders, including the specifically disenfranchised shareholders holding more than 1.5 million votes. The Concerned Shareholders have already cautioned the directors who are purporting to have been elected from taking any steps relating to the Company's assets, including in relation to the private placement announced by the Company on August 11, 2016 and announced as amended on September 2, 2016 pending a review process.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including, without limitation, risks and uncertainties related to actions taken by the Company or shareholders in connection with the Meeting. No assurance can be given that any of the events or outcomes anticipated by any forward-looking statement will occur.

Source: Concerned Shareholders of Hemostemix Inc.