Cardiol Therapeutics Announces Filing of Preliminary Prospectus

Oakville, Ontario--(Newsfile Corp. - September 17, 2018) - Cardiol Therapeutics Inc. ("Cardiol" or the "Company"), a biotechnology company specializing in the research and commercial development of novel drug therapies utilizing proprietary drug-delivery systems, is pleased to announce that it has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec, in connection with a proposed initial public offering (the "Offering") of its Class A common shares (the "Common Shares"). A copy of the preliminary prospectus is available on SEDAR (www.sedar.com).

The Offering will be made through a syndicate of underwriters led by AltaCorp Capital Inc.

The preliminary prospectus has not yet become final for the purposes of the sale of the securities, and information contained in the preliminary prospectus may not be complete and may have to be amended. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Common Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or to or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any Common Shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

About Cardiol Therapeutics

Cardiol Therapeutics, www.cardiolrx.com, is a biotechnology company specializing in the research and commercial development of novel drug therapies utilizing proprietary drug-delivery systems. The Corporation is leveraging its expertise in pharmaceutical cannabinoids to develop proprietary formulations for commercial development in three important medical markets, namely: (1) developing nanotechnologies designed to deliver cannabinoids and other anti-inflammatory drugs for the treatment of heart failure; (2) pursuing an immunotherapeutics program commencing with an innovative cancer immunotherapeutic in combination with cannabinoids for Glioblastoma Multiforme, a Fast Track eligible orphan indication; and (3) commercializing a line of pharmaceutically-manufactured pure cannabidiol products in the growing market for medical cannabinoids.

For further information, please contact:

David Elsley, President & CEO
905.491.6793
david.elsley@cardiolrx.com

Trevor Burns, Investor Relations
905.491.6793
trevor.burns@cardiolrx.com

Cautionary statement regarding forward-looking information:

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws which may include, but is not limited to, statements with respect to the proposed initial public offering. All statements, other than statements of historical fact, that address activities, events or developments that Cardiol believes, expects or anticipates will, may, could or might occur in the future are "forward-looking information". Forward-looking information contained herein reflects the current expectations or beliefs of Cardiol based on information currently available to it and is subject to a variety of known and unknown risks and uncertainties and other factors that could cause the actual events or results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. These risks and uncertainties and other factors include risk that the initial public offering may not proceed or may be delayed. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Cardiol disclaims any intent or obligation to update or revise such forward-looking information, whether as a result of new information, future events or results or otherwise.

Not for Dissemination in the United States