Protalex Inc. announced that it has entered into a new credit facility agreement pursuant to which Niobe Ventures, LLC the company's existing secured lender, agreed to loan, and the company may borrow, up to an additional $5.0 Million in the form of secured loans at the request of the company made in accordance with the 2014 credit facility agreement at any time prior to the December 31, 2015 expiration date. Each loan made to the company by Niobe under the 2014 credit facility agreement will be represented by a senior secured promissory note bearing interest at a rate of 3% per annum and maturing on September 1, 2016. The obligations of the company pursuant to each note will be secured by a first priority perfected security interest in all of the assets of the company pursuant to the second consolidated, amended and restated security agreement.

In addition on November 4, 2014, the company entered into a note modification agreement with Niobe pursuant to which the consolidated, amended and restated promissory note made by the company to Niobe in the principal amount of $9,219,366, dated October 11, 2013, as modified on October 6, 2014, was further amended to increase the Mandatory prepayment amount from $7.5 Million to $10 million. As a result, partial prepayment will now be triggered in the event of a liquidity event in which the company receives gross proceeds in excess of $10 million. All other terms and provisions of the outstanding note remained unchanged and in full force and effect.

The foregoing descriptions of the note modification agreement, 2014 credit facility agreement and security agreement are qualified in their entirety by the full text of such agreements.