Concerned Shareholders of Hemostemix Inc. Announce Important Reminder to Vote to Reconstitute Board of Directors

CALGARY, ALBERTA--(Marketwired - Aug. 29, 2016) - Jed Wood today issued the following important message for shareholders of Hemostemix Inc. to vote in support of positive change at the company's upcoming shareholder meeting on behalf of the concerned shareholders of Hemostemix (the "Concerned Shareholders").

"Dear Fellow Shareholders,

You have an important decision to make at the upcoming annual and special meeting of shareholders of Hemostemix Inc. ("Hemostemix" or the "Company") being held on September 8, 2016 (the "Meeting").

Your vote will impact the future of your investment in the Company and you have the opportunity to effect change by voting FOR the Concerned Shareholders' nominees to the Board of Directors.

DO NOT ALLOW MANAGEMENT AND ITS NOMINEES TO DRIVE THE SHARE PRICE ANY LOWER.

VOTE YOUR BLUE PROXY IN SUPPORT OF THE CONCERNED SHAREHOLDERS FOR A MUCH NEEDED CHANGE IN THE RIGHT DIRECTION.

The Concerned Shareholders are proposing for shareholder approval to, (i) fix the number of directors on the Company's board of directors (the "Board") at four, and (ii) elect four directors, including Jed Wood, and three additional new independent directors, to the Board. Furthermore, the Concerned Shareholders recommend that Shareholders vote AGAINST the management resolutions to approve the Company's recently announced advance notice by-law and enhanced quorum by-law. The Concerned Shareholders believe that these by-laws were implemented in a calculated attempt to preclude the Concerned Shareholders from putting forth a different group of directors for election to the Board at the Meeting.

Shocking Erosion of Value. Failed Strategic Plan of Management and Board.

We, the Concerned Shareholders are fellow shareholders who like many of you, are disappointed with the years of continued deterioration of the stock price. This is primarily the result of the failed strategic plan of current Management and the existing Board which has negatively resulted in the following:

• Erosion of Shareholder Value
  
  
• Loss of Strategic Partner and Halt of Clinical Trial
  
  
• Mismanagement of Capital
  
  
• Excessive Compensation and Operating Costs
  
  
• Failed Brokered and Non-Brokered Financing
  
  
• Failure to Fulfil Terms of its Agreement with Asia Partner
  
  
• Fracture and Flight of Managers and Directors
  
  
• Appalling Disclosure Record and Poor Corporate Governance
  
  

Shareholders are encouraged to read the Concerned Shareholders' proxy circular for further details regarding each concern addressed above, and for an outline of the Concerned Shareholders' strategic plan to drive change for the better.

Concerned Shareholders' Commitment to Enhance Shareholder Value

The Concerned Shareholders are committed to acting in the best interests of the Company, with a view toward maximizing the value of Hemostemix's Common Shares for the benefit of all of the Company's shareholders. Toward that end, the Concerned Shareholders have,

• identified the four Concerned Shareholders' nominees, whom we believe can make significant contributions to the Company and would act with honesty and integrity to provide Hemostemix with the leadership and oversight required to enhance shareholder value and allow Hemostemix to realize on its potential;
  
  
• designed a sound strategic plan with timelines, as described in the Concerned Shareholders proxy circular, to enhance shareholder value;
  
  
• continued to further consult with a range of highly qualified clinical scientists and medical professionals with deep and specific knowledge of not only the Company's general industry (research and development of autologous cell therapies), but the Company's specific technology and clinical trials in particular;
  
  
• garnered significant interest and secured commitments (conditional upon a successful outcome at the Meeting) from a number of the highly qualified clinical scientists and medical professionals consulted, to join the Concerned Shareholders' team to lead the new scientific advisory board (SAB), or the new clinical steering committee; and
  
  
• further developed its transition plan relating to the clinical science and biotechnology expertise required for the Company going forward, based on the consultations with the clinical scientists and medical professionals.
  
  

Overall, the Concerned Shareholders believe that replacing the Board with the right slate is critical to stabilize Hemostemix. Our proposed new leadership will not only reduce operating expenses, avoid similar tumultuous failures, but provide enhanced, cohesive management that will promote greater transparency, and enhance value for ALL Shareholders

Please join us to unlock Hemostemix's true value by voting the BLUE voting form for the Concerned Shareholders' nominees.

Sincerely Yours,

Jed M. Wood

On behalf of the Concerned Shareholders of Hemostemix Inc."

VOTE YOUR BLUE PROXY FORM WELL IN ADVANCE OF THE DEADLINE ON SEPTEMBER 6, 2016 AT 12 P.M. (MST)

Time is of the essence. Vote online or by telephone by following the instructions found in the accompanying BLUE voting form.

The Concerned Shareholders recommend voting the BLUE form:

• FOR fixing the number of directors at four
• FOR the election of the Concerned Shareholders' nominees to the board of directors
• FOR the appointment of MNP LLP, Chartered Accountants, as auditors
• FOR the approval of Hemostemix's rolling stock option plan
• AGAINST the approval of Hemostemix's advance notice by-law
• AGAINST the approval of Hemostemix's enhanced quorum by-law

If you have already voted using Management's form but wish to support the Concerned Shareholders, simply recast your vote using the BLUE voting form. A later dated vote will supersede a previous vote.

Questions or requests for assistance with voting may be directed to the Concerned Shareholders' Proxy Solicitor:

Laurel Hill Advisory Group

North America

Toll Free: 1-877-452-7184

Collect Calls Outside North America: 416-304-0211

Email: assistance@laurelhill.com

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.