Algae Biosciences Corporation Announces Private Placement Financing

Calgary, Alberta--(Newsfile Corp. - May 2, 2013) - Algae Biosciences Corporation (TSXV: ABV) ("AlgaeBio") intends to complete a non-brokered private placement of up to 30,000,000 units (the "Units") at a price of $0.05 per Unit for total gross proceeds of $1,500,000 (the "Private Placement").

Each Unit shall consist of one common share ("Share") of AlgaeBio and one full common share purchase warrant ("Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share at a price of $0.10 for a period of 60 months following the closing date of the Private Placement (the "Closing Date").

AlgaeBio may pay finder's fees to eligible persons on a portion of the Private Placement consisting of a cash payment equal to 10 percent of the Private Placement gross proceeds, and the issuance of finder's warrants ("Finder's Warrants") equal to 10 percent of the gross proceeds raised from applicable subscriptions in the Private Placement. Each Finder's Warrant will entitle the holder to acquire one additional Unit at a price of $0.10 for a period of 24 months from the Closing Date.

AlgaeBio intends to use the proceeds from the Private Placement to fund on going working capital commitments and to purchase equipment required for production.

Completion of the Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.

The securities to be issued under the Private Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of AlgaeBio's securities in the United States.

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ABOUT ALGAE BIOSCIENCES CORPORATION: AlgaeBio is a Canadian biotechnology company that researches, develops, and manufactures products from micro and macro algae such as nutraceuticals, food additives, and pharmaceuticals. With access to algae growing conditions, exclusive aquaculture access to a brine water supply, and advanced proprietary technology, AlgaeBio produces human and animal consumable products, as well as offering advanced algae-based products and technologies for distribution. AlgaeBio owns and operates production facilities near Holbrook, Ariz., and is listed on the TSX Venture Exchange (TSXV: ABV).

For more information:
Robert J. Thompson
Chairman of the Board
Algae Biosciences Corporation
E-mail: investorrelations@algaebio.com

Forward-Looking Information

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the AlgaeBio's intention to complete the Private Placement and the use of proceeds from the Private Placement. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information includes management's ability to raise gross proceeds of $1,500,000 and the failure to obtain final approval from the TSX Venture Exchange. Although AlgaeBio believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The AlgaeBio disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the 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 the content of this release.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.