Algae Biosciences Announces Closing of Non-Brokered Private Placement

Calgary, Alberta--(Newsfile Corp. - December 24, 2012) - Algae Biosciences Corporation (“AlgaeBio” or the “Company”) (TSX-V: ABV) announces that it has closed a non-brokered private placement for gross proceeds of CAD$351,750 and issued 2,345,000 shares at a price of $.15 per share. Finder’s fees of $35,175 cash were paid and 234.500 finder’s warrants were issued in connection of the financing. The financing is subject to TSX-V final approval.

The proceeds from this financing will be used to advance the production capabilities of the plant and provide funds for general corporate purposes.

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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. AlgaeBio owns and operates production facilities near Holbrook, Ariz., and is listed on the TSX Venture Exchange (TSX.V:ABV).

For more information:
Robert J. Thompson
Chairman of the Board
Algae Biosciences Corporation
Phone: 602.909.9728
E-mail: r.thompson@algaebio.com

Gordon Aldcorn
Investor Relations
Algae Biosciences Corporation
Phone: 403.618.6507
E-mail: g.aldcorn@algaebio.com

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws. Although the Corporation believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based on factors and assumptions concerning future events that may prove to be inaccurate. These factors and assumptions are based upon currently available information to the Corporation. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this press release are made as of the date of this release and, except as required by applicable law, the Corporation does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Corporation or its financial or operating results or (as applicable), their securities.

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.