NurExone to Collaborate with Polyrizon for Intranasal Administration of Cutting-Edge Exosome-Therapy

Calgary, Alberta--(Newsfile Corp. - July 11, 2022) - NurExone Biologic Inc. (TSXV: NRX) (formerly, EnerSpar Corp.) (the "Company" or "NurExone"), a biopharmaceutical company developing biologically-guided exosome therapy for patients with traumatic spinal cord injuries, announced today the signing of a collaboration agreement (the "Collaboration Agreement") with Polyrizon Ltd ("Polyrizon"), an Israeli biotech company that specializes in innovative intranasal products.

Under the Collaboration Agreement, Polyrizon will use its advanced Trap and Target™ platform to develop formulations, conduct analytical development and produce technical batches of a tailored intranasal delivery system suitable for NurExone's exosome administration. The system is being designed for highly efficient intranasal delivery of NurExone's ExoTherapy to patients with traumatic spinal cord injuries (SCI) and may also be relevant to other treatments through intranasal exosome delivery.

NurExone is developing unique and proprietary exosomes (a small vesicle) as biologically-guided nanocarriers, called ExoTherapy, to deliver specialized molecules to targeted areas. The delivered molecules promote an environment that induces a healing process at the target location. For SCI, the Company will use modified siRNA sequences as the delivered therapeutic molecules.

According to Dr. Lior Shaltiel, CEO of NurExone, "We chose to work with Polyrizon, an innovation leader in the field of intranasal products, to develop the unique formulation for our delivery technology. With intranasal administration, exosomes carrying a therapeutic cargo can enter the brain with ease, bypassing the blood-brain barrier. Our studies have shown that intranasal ExoTherapy holds the potential to recover functionality and reduce economic suffering for some of the nearly 50,000 new patients in the United States and Europe who suffer from acute spinal cord injuries each year."

Under the Collaboration Agreement, NurExone will cover the costs of the formulation development in an estimated amount of US $220,000 payable in three (3) installments upon development success. Nurexone expects to be able to perform a biological efficacy study of the intranasal system within the next three (3) quarters.

NurExone shall also pay development fees to Polyrizon under the Collaboration Agreement of up to a total of US $3,350,000 upon completion of certain milestones, including the payment of an aggregate of US $500,000 upon successful completion of a Phase 2 clinical trial. Moreover, NurExone shall pay royalties based on any product sales resulting from the Collaboration Agreement. In addition to the rights to use Polyrizon's technology on NurExone's ExoTherapy products, the Collaboration Agreement also provides NurExone the right to sublicense the intranasal delivery technology to third parties, subject to certain payments based on a percentage of income actually received by NurExone by the sublicensee. In advance stages of the collaboration, Polyrizon may assist NurExone with regulatory submissions for the United States and Europe. Manufacturing and marketing rights for formulations under the Collaboration Agreement are exclusive to NurExone. The Collaboration Agreement may be terminated by either party on at least 90 days written notice. Nevertheless, parts of it (such as IP and Product Licenses, Costs and Expenses and more) are in effect for an unlimited term.

About Polyrizon
Polyrizon Ltd. is a clinical development stage biotech company focused on the development and commercialization of innovative intranasal products. The company's products pipeline candidates are based on two technology platforms. The Capture and Contain™ (C&C™) platform, consist of a mucoadhesive polymers mixture optimized to capture and contain biological assaults. The system provides protection via an innovative 3-dimensional polymeric network, tailored to coat the inner nose surfaces, to create a physical barrier against these micro-particles and may prevent the thousands of airborne microorganisms and allergens to affect the respiratory system. The Trap and Target™ (T&T™) drug delivery platform, is optimized to create a long residence time and an intimate contact with the mucosal tissue of the nose for an effective nasal drug administration with a rapid drug absorption coupled with a quick onset and avoidance of first-pass metabolism. Both C&C and T&T platform technologies have the potential to improve the quality of life for people and to improve patient outcomes by enabling customizable, preventative, and therapeutic solutions.

About NurExone Biologic Inc.
NurExone Biologic Inc. is a TSXV listed pharmaceutical company that is developing a platform for biologically-guided ExoTherapy to be delivered, non-invasively, to patients who suffered traumatic spinal cord injuries. ExoTherapy was conceptually demonstrated in animal studies at the Technion, Israel Institute of Technology. NurExone is translating the treatment to humans, and the company holds an exclusive worldwide license from the Technion for the development and commercialization of the technology.

For more information, please contact:

Dr. Lior Shaltiel
Chief Executive Officer and Director
lior@nurexone.com
+972-52-4803034

Investor Relations
IR@nurexone.com
+1 905-347-5569

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

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements, including statements about the Company's future plans, the development activities to be carried out pursuant to the Collaboration Agreement, the achievement of potential milestones under the Collaboration Agreement, regulatory approvals, the entering into of potential sub-license arrangements and any potential revenues resulting therefrom and any future potential manufacturing and marketing activities. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof. Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the Company's early stage of development, lack of revenues to date, government regulation, market acceptance for its products, rapid technological change, dependence on key personnel, protection of the Company's intellectual property and dependence on the Company's strategic partners. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

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